Carbon Trading

Within Australia, there are two carbon markets that exist between the governments and businesses, energy providers and industrial companies. These are classified as mandatory markets and voluntary markets.

The mandatory markets in Australia consist of legislative schemes that must be adhered to by large carbon intensive industries. The idea is that large companies will be allocated permits to emit a certain amount of CO2. Companies that exceed their allocated permit must purchase credits equal to the exceeded amount. Alternatively, companies that fall short of their allocated allowances may sell their credits to another party. Known as a "cap and trade". Read More National Emission trading scheme.

The voluntary markets consist of businesses and consumers who want to voluntarily offset their emissions through the purchase of carbon credits. These carbon credits are generated from projects in Australia and are sold to businesses and consumers to offset their footprint. This allows them to be proactive in this climate changing world.

As the market in Australia develops to incorporate international markets, there is a constant level of change and speculation about the direction it will go.

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