California carbon market may link with Australia
Two jurisdictions that recently launched carbon markets, California and Australia, have announced they will be cooperating with one another in what may point towards the eventual linkage of the two markets.
It was announced that California and Australia will share their best practices regarding market structure which will improve both of their systems and get them more in line with one another.
Mary Nichols, chair of the California Air Resources Board, and Chloe Munro, chair of the Australia Clean Energy Regulator, met to discuss collaborating together.
Australia initially imposed a carbon tax on businesses, but has since hastened plans to shift to using market mechanisms like carbon allowances and carbon credits.
The European Union Emission Trading System has also been looking at linking with Australia’s market.
Other nations have also expressed interest in linking with the California carbon market.
The Canadian province of Quebec will be coming into the California carbon market next year, further increasing the size of the world’s second largest carbon market.