Emissions Trading Scheme Discussion Paper

The Garnaut Climate Change Review has released a discussion paper putting forward for community discussion a set of principles and design features for the delivery of an efficient and effective Emissions Trading Scheme (ETS).

An ETS has two types of design features: those that are essential to the operational efficiency of the scheme, referred to as intrinsic features, (for example the scheme’s coverage, permit allocation rules, compliance rules and governance); and those that are defined outside of the scheme’s operation, but still have considerable influence on the scheme’s economic impact, referred to as extrinsic features (for example, defining the emissions limits and principles for compensation).

Submissions on the discussion paper are open until 18 April 2008.