What does a partial link between the Australian and European systems mean?
A partial link between the Australian and European systems is an interim step towards a full link no later than July 2018. Under a partial link, Australian businesses will be able to use European allowances to meet up to 50 per cent of their liabilities under the Australian scheme from the commencement of the flexible price period in July 2015. This will ensure that Australian businesses have access to a broader range of credible, low-cost abatement. The Australian emissions trading system will be in its initial stages and this will provide access to credits from a more established market to allow smoother introduction of emissions trading in Australia.