First Australian carbon units issued
The Clean Energy Regulator has issued carbon units for the first time under the carbon pricing mechanism, signaling the commencement of the Australian carbon market.
This significant milestone for the carbon pricing mechanism came as three applicants received free carbon units under the Jobs and Competitiveness Program.
Issued via the Australian National Registry of Emissions Units (ANREU), the free units were provided to Alcoa of Australia Ltd (alumina refining) and Queensland Nitrates Pty Ltd (production of ammonia and ammonium nitrate).
‘The issuance of the units signals the start of a carbon market in Australia,’ said Chloe Munro, Chair and CEO of the Clean Energy Regulator.
The Jobs and Competitiveness Program provides assistance in the form of free carbon units to companies that produce significant carbon emissions but are constrained in their capacity to pass through costs in global markets.
‘These applicants have received around 6.37 million free carbon units which companies can now sell back to the Government, transfer, or use to acquit their future liability under the carbon pricing mechanism,’ Ms Munro said.
The Clean Energy Regulator will continue to process applications under the Program and issue further units in the coming weeks. Applications for the 2012-13 round close on October 31. Applicants can apply to the Clean Energy Regulator before 31 October 2012 to seek an extension to 31 December 2012.
Further details about the issue of free carbon units are available from the Clean Energy Regulator.