What does linking mean for Australian businesses’ access to international units?
Linking will provide Australian businesses with secure access to a broader pool of international emissions units. European allowances will be added as an eligible international unit that can be used in the Australian scheme and Australian businesses will be able to use eligible international units for up to 50 per cent of their total liability until 2020.
To facilitate the negotiation of a full link, the Australian Government is removing the price floor, as well as introducing an additional sub-limit on the use of Kyoto Protocol eligible international units such that firms will be able to use these units to meet up to 12.5 per cent of their annual liabilities within the 50 per cent overall limit on the use of eligible international units. This limit will ensure that the link operates effectively and provides long term price certainty for businesses investing in low emissions technologies.