Australia links carbon pricing scheme to EU

The  Australian government has announced that it would be abandoning its own carbon pricing scheme in order to participate in the one developed by the EU.

Climate change minister Greg Combet announced the move this week, noting that the new carbon pricing plan was expected to take effect between now and 2018.

According to government officials this was further proof that there was international cooperation in the fight against climate change. Australia's participating in the EU carbon pricing plan would likely impact the country's businesses.

Under the plan Australian companies would be able to purchase 50 per cent of their liabilities from international markets of which only 15 per cent could be met through so called ''Kyoto units,'' which were generated by the United Nations' Clean Development Mechanism.

However, foreign companies would not be able to purchase the same permits from Australia until 2018. The government does not believe that Australian companies would face an ''uneven'' playing field in terms of carbon pricing.

According to officials, participating in the EU carbon pricing plan would relieve to a certain extent the uncertainty that surrounded its own plan.