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The Australia-EU Emissions Trading System (ETS) linking negotiation was the first attempt to link ETSs with substantively different designs, and thus provides insights on the possibilities for heterogenous linking. It offers a case study of how emissions trading can enable cooperation between jurisdictions, while still being designed to fit local circumstances. This flexibility means that heterogeneous linking can accelerate the growth of international carbon markets, in turn enabling enhanced cooperation, reduced mitigation costs and therefore greater climate ambition. There is a range of drivers and facilitators of ETS-linking. Economic and political benefits drive cooperation, and this cooperation can be facilitated by geographic proximity, institutional compatibility, and cultural factors. In this paper, we use interviews with key policymakers from the European Commission and the Australian Government to assess the role of these factors in enabling cooperation. These interviews highlight the importance of domestic and international political considerations in driving cooperation in this case. Further, they show that mutual confidence in the quality of institutions and integrity of allowances was paramount to enabling the linking agreement. Cultural factors also contributed, with affinities built between technical experts facilitating policy and political problem-solving across jurisdictions. Ultimately, this case study shows that cooperation between highly diverse carbon markets is possible and may occur rapidly when the appropriate conditions are in place. Key policy insights Heterogenous linking facilitates cooperation between emissions trading systems and jurisdictions by providing scope for those individual jurisdictions to adopt design features appropriate to their unique local circumstances. There are distinct factors that drive and facilitate cooperation. Economic and political factors motivate cooperation but facilitating factors can include geographic links, institutional compatibility and cultural factors. The perceived credibility of an ETS is a key factor in identifying cooperative partners for linking, particularly important are measures to ensure environmental integrity and manage potential impacts on competitiveness. Aligning institutional elements, such as registry standards or cooperation between financial market regulators, may hasten linking arrangements once political circumstances are conducive to such an outcome. [ABSTRACT FROM AUTHOR]

This paper provides an overview of Australia's main climate policy in the land sector, the Emissions Reduction Fund (ERF). Section II analyses Australia's historical role and participation in international climate agreements, as well as the country's past and present emissions reduction targets. It concludes that while Australia's Nationally Determined Contribution (NDC) under the Paris Agreement lacks ambition, States and Territories are taking the lead and adopting more stringent emission reduction targets domestically. Section III introduces an important climate policy that preceded the ERF, consisting of a mandatory emissions trading scheme which lasted two years and was originally linked to a domestic voluntary offsets scheme in the land sector, the Carbon Farming Initiative (CFI). With the dismantling of the emissions trading scheme, the CFI was reformed, and the ERF was implemented. Section IV presents the main features of the ERF and its outcomes to date. Section V briefly contrasts the ERF with other federal initiatives, including the National Reserve System. The paper argues that not only is the ERF costly and unsustainable, but it has also been ineffective in reaching meaningful emissions reductions in the land sector since its implementation. [ABSTRACT FROM AUTHOR]

Strategies for mitigating climate change through altered land management practices can provide win–win outcomes for the environment and the economy. Emissions trading for greenhouse gas (GHG) abatement in Australia's remote, fire‐prone, and sparsely populated tropical savannas provides a financial incentive for intensive fire management that aims to reduce fire frequency, severity, and extent, and it supports important social, economic, and land management opportunities for remote communities, conservation agencies, and pastoralists. These programs now cover >20% of Australia's 1.9 million km2 tropical savanna biome, encompassing areas of globally significant biodiversity value. A common assertion is that by reducing the frequency, severity, and extent of fires for GHG abatement, these programs provide biodiversity co‐benefits. However, such biodiversity benefits have been assumed rather than demonstrated. Much better accounting of how biodiversity is responding to changed fire management is required to ensure that there are no unintended outcomes for biodiversity (bioperversity), and that biodiversity co‐benefits are maximized. Such accounting could underpin the earning of formal biodiversity credits from improved fire management, and will go a long way to understanding and improving the biodiversity outcomes of savanna fire management. [ABSTRACT FROM AUTHOR]

Australian climate change policy has been applied haphazardly to Australia's electricity markets for almost two decades. Federal and state level emissions trading frameworks have been introduced and subsequently repealed. Several studies have pointed to the significant costs imposed by such policy discontinuity. This article demonstrates that the use of production subsidies has also resulted in a 'disorderly' transition and has broken the link between the financial incentives for decarbonisation activities and the physical needs of the electricity system. We evaluate the various options for correcting this by introducing a stable, long-term climate change policy that integrates efficiently with electricity policy objectives. By applying a broad assessment framework, we are able to establish that a market mechanism aimed at pricing the externality implied by an independently set carbon budget is the most efficient policy response. [ABSTRACT FROM AUTHOR]

This paper argues that attempts to transform Australia's urban environment into a sufficiently sustainable one has been misdirected. The 'green rating tool,' industry's adherence to relevant standards and governmental policies represent the primary means of effecting the sustainability transition. However, only high-profile commercial building owners seem interested in being green-rated; the actual end-users of buildings are far less committed (e.g. employees ensconced in commercial buildings and residential home occupiers). Through a systematic review of 103 journal articles published on the topic of end-users and sustainability transition, original findings are presented. The findings reveal that most residential end-users do not purchase green homes and without their 'buy-in,' sustainability transition across Australia will continue to fail. This paper offers a critical analysis of the status-quo, identifying where the effort to generate a sustainable urban environment has been misdirected, what challenges prevail, and why residential end-users have been overlooked. In looking for a way forward that engages end-users, the paper proposes that financial incentives for the purchase of low-carbon buildings must be introduced into the residential real-estate market. And the modeling for this rebate is discussed in terms of emissions trading schemes or carbon tax. • Attempts to transform Australia's urban environment into a sufficiently sustainable one have not generated desirable outcomes. • A systematic review of 103 journal articles is conducted on the topic of end-users and sustainability transition. • Residential end-users do not purchase green homes and without their 'buy[HYPHEN]in,' sustainability transition will fail. • Financial incentives for the purchase of low-carbon buildings must be introduced into the residential real-estate market. • The modeling for the rebate is discussed in terms of emissions trading schemes or carbon tax. [ABSTRACT FROM AUTHOR]

Abstract Following the international commitment to tackle climate change issues, many countries have introduced climate change policies to reduce emission levels. Australia also expects to follow the international pathways to implement a climate change policy to curb its greenhouse gas emissions. In this context, the former Labor Government in Australia intended to switch its carbon tax policy to an emissions trading scheme (ETS) after 2 years of its initial operation to achieve an emission target of 5 per cent below the 2000 level by 2020. By employing a computable general equilibrium model and a social accounting matrix database, this article analyses the potential impacts of an ETS with various revenue recycling options on Australian households. Results show that an emission permit price of A$20 per tonne of CO2-e would help Australia to achieve the 2020 emission reduction target. This permit price is likely to have a small contraction in Australia's real GDP (i.e. about 0.3 per cent) and in real household consumption (i.e. about 0.19 per cent). The price of electricity is projected to increase by 13 per cent. The revenue recycling options seem to create an improvement in the macro-economy and there is a trade-off between economic efficiency and equity in the Australian economy with compensations. The personal income tax reduction policy results in an economic efficiency with a positive change in real aggregate household consumption whereas providing an equal lump-sum transfer brings benefits equally for all household groups. Increased government transfers based on recipients' current pension and allowance rates generate more welfare gains for middle-income household groups. Highlights • A CGE model for Australia is developed and applied to analyse the impact of a domestic emissions trading scheme (ETS). • The modelling results show that an emissions permit price of A$20 per tonne of CO 2 -e to achieve the emissions target. • CO 2 -e to achieve the emissions reduction target. • Three revenue recycling options are examined to improve the efficiency and equity. • Increased government payments generate more welfare gain for middle income household groups. [ABSTRACT FROM AUTHOR]

Abstract Understanding carbon emissions embodied in trade is an important prerequisite for the effective formulation of climate mitigation policies. Based on input–output analysis and panel regression models, this study proposes a multi-step forecasting procedure to simulate carbon emissions embodied in bilateral trade. We calculate carbon emissions embodied in the trade between China and Australia during 2000–2014 and forecast the same for the period 2015–2022 under four different development scenarios. The results show that, during 2000–2014, net carbon outflow from China to Australia increased from 2.2 to 15.5 Mt CO 2 , concentrated in textile and heavy manufacturing sectors. The simulation results show that, the forecasts of "R&D focus" and "GDP focus" scenarios constitute the lower and upper bounds of embodied emissions, and the latter is more than two times of the former in 2022 both for embodied emissions in Australia's exports and China's exports. Finally, conclusions are drawn and policy implications are discussed. Highlights • A multi-step forecasting procedure of carbon emissions embodied in trade is proposed. • Carbon emissions embodied in China–Australia trade during 2000–2014 are analyzed. • A scenario analysis is conducted for emissions embodied in China–Australia trade. [ABSTRACT FROM AUTHOR]

Abstract Several climate change policies, such as emissions trading schemes and carbon taxes, have been implemented in many countries and regions around the world. However, the current Coalition Government in Australia does not prefer such methods and has argued that these policies would substantially increase the electricity price, and weaken the Australian competitiveness and the whole economy. Subsequently, the Government replaced the carbon tax policy in July 2014 with its Emissions Reduction Fund, which fundamentally uses the government budget of A$2.55 billion to buy emission abatements from polluters. There are major arguments among the Australian public about the efficiency and the effects of this approach, but the economic effects are still unidentified. This study aims to examine the economy-wide effects of this policy on the Australian economy by employing a national environmental and economic general equilibrium model so that Australians and international audience would be aware of the impacts and how the reverse auction and carbon subsidy work as a policy to reduce emissions at large scales across all sectors in a country. Results show that Australia only experiences relatively small impact on its economy. Real GDP only declines by 0.3%–0.4% over all scenarios. Industrial and private sectors also experience relatively small unfavourable impacts, but the output and export level of the agricultural commodity will decline substantially. The renewable sectors are expanded to compensate output reductions in fossil fuel electricity generation sectors, though the expansion is insufficient to compensate for the losses. Highlights • This study examines the impacts of the Emissions Reduction Fund in Australia. • A detailed electricity computable general equilibrium model is developed. • Abatement sectors are assumed to use the funding for improving efficiency. • The Australia only experiences a mild contraction in the economy. • Renewable electricity sectors are expanded but at relatively small rates. [ABSTRACT FROM AUTHOR]

This article assesses current and proposed European Union (EU) climate and environmental law, and the legal instruments associated with the Common Agricultural Policy (CAP), to see whether soil carbon sequestration is sufficiently promoted as a promising example of 'climate-smart agriculture'. The assessment shows that current and proposed policies and instruments are inadequate to stimulate large-scale adoption of soil carbon projects across Europe. Given the identified structural flaws, it is likely that this is true for all climate-smart agricultural practices. An alternative approach needs to be developed. Under EU climate policy, agriculture should be included in the EU Emissions Trading System (ETS) by allowing regulated industries to buy offsets from the agricultural sector, following the examples set by Australia and others. The second element of a new approach is aimed at the CAP, which needs to be far more focused on the specific requirements of climate change mitigation and adaptation. Yet, such stronger focus does not take away the need to explore new income streams for farmers from offsets under the ETS, as the CAP will never have sufficient funds for the deep and full transition of Europe's agriculture sector that is needed. [ABSTRACT FROM AUTHOR]

Is public opinion on global climate change stable, with voters holding deeply rooted attitudes that guide them to consistent policy positions? Or is public opinion malleable, with voters adjusting their environmental positions when they learn about the positions of political leaders? To explore whether leaders can influence mass opinion on climate change, we conduct a pair of survey experiments in Australia. Emissions trading plans and renewable energy targets have been central issues in Australian politics over the last decade, with the members of the major parties deeply polarized on these issues. Our experiments reveal that survey respondents take different positions on climate change policy when they learn what positions leaders hold. When respondents learn that leaders take divergent positions on addressing climate change, they become more polarized along party lines. But when leaders converge on a policy proposal, they also bring those who follow them into closer agreement, providing evidence that partisan polarization at the mass level can be overcome when leaders come together on environmental policies. [ABSTRACT FROM AUTHOR]