Change to the Emissions Reduction Fund jeopardises Australia’s 35% emission reduction forecast

Now they can pay an exit fee of $12.50 on average, setting the cost at $25, sell units in the open market and receive higher prices .

Carbon abatement suppliers in optional delivery contracts will now receive less if they sell at depressed prices.

Stronger Safeguard Mechanism requirements could be introduced, lowering the baseline for emitters each year, enforcing progressively greater annual emission reductions .

Ideally, the whole carbon market should be redesigned as a comprehensive “gross” emissions trading scheme in which emissions are reduced or paid for in full .

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