Module 3 provides a review of international agreements and domestic policies for mitigation climate change. In particular the Kyoto Protocol and the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC) are the two key international agreements. In Australia we compare and contrast the carbon tax policy with the Emissions Reduction Fund. In week 9, the focus is on development of carbon pricing instruments globally. A potential risk identified is carbon leakage. A next step in the development of these markets is the potential for linking carbon pricing across the different schemes.
Respond: In your answers use credible published sources (references) to support your arguments (excluded from the word count).
1. Illustrate with a diagram and explain in words how the former Labor Government’s carbon tax policy compares with the Coalition Government’s direct action plan (Response in one paragraph under 100 words)?
2. Assume you are a senior researcher with the United Nations Framework Convention on Climate Change (UNFCCC). The Head of the research branch has requested a briefing note on the possibility of linking the European Union (EU) Emissions trading scheme (ETS) with the New Zealand (NZ) ETS. She has asked for precise and concise answer to the following two questions (assume the linking is direct and bilateral).
a. In dot points what is the key motivation for linking two emissions trading schemes (Respond in less than 60 words)?
b. Assume the initial price of carbon is higher in the EU ETS. Do NZ ETS net buyers of emissions permits gain or lose? Do EU ETS net sellers of emissions permits gains or lose? Briefly explain (in less than 60 words).
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