Zeller, Bruno --- "Harmonised Legal Framework for Carbon Trading" [2012] ELECD 370; in Andenas, Mads; Andersen, Baasch Camilla (eds), "Theory and Practice of Harmonisation" (Edward Elgar Publishing, 2012)

Book Title: Theory and Practice of Harmonisation

Editor(s): Andenas, Mads; Andersen, Baasch Camilla

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849800013

Section: Chapter 26

Section Title: Harmonised Legal Framework for Carbon Trading

Author(s): Zeller, Bruno

Number of pages: 16

Extract:

26. Harmonised legal framework for
carbon trading
Bruno Zeller*

INTRODUCTION
As a result of global warming the question of reducing greenhouse gases has
become a focal point of discussion. The result is that industry will be judged by
its emissions as either a polluter at one end of the spectrum or as a `green' busi-
ness at the other end. It appears inevitable that countries will impose national
caps on emission and issue tradable permits or introduce carbon taxes (cap and
trade) modelled on the Kyoto Protocol.1 In addition the Bali Road Map agreed
on at the 2007 conference of the Parties of the United Nations Framework Con-
vention on Climate Change (UNFCCC) suggested world wide targets.2
In order to comply with the Kyoto Treaty each country will need to introduce
emissions targets, a time frame to implement the targets as well as a carbon trad-
ing scheme. Whether the practical aspects of reducing greenhouse gases is driven
by international conventions, left to individual contracting parties or unilateral
decisions by individual countries is not yet absolutely clear. In line with the
Kyoto Treaty, Australia and other countries are setting targets and timeframes as
national bench marks. However such endeavours are not universally followed.
Furthermore the Party Quantified Emission Limitation or Reduction Com-
mitment (percentage of base year or period) varies between countries. Australia
has set a target of 108 which is at the top scale, whereas others and notably the
EU look at a figure of 92 which ...