Australia needs to cut its CO2 emissions by 236 million tonnes to meet its official target, agreed under the Kyoto Protocol, of cutting emissions by 5% below 2000 levels by 2020.
The first emissions auction bought 47.3 million tonnes of carbon emissions for about $660 million, an average of about $14 per tonne of CO2.
The Emissions Reduction Fund budget is $2,550 million. If the cost of carbon emissions remains at $14 per tonne, then The ERF will only be able to buy 182 million tonnes – which is short of the target 236 million, short by 54 million tonne or 23%.
The article details why this 23% shortfall, or even a 30% shortfall, is optimistic. This is a shortfall against our meager 5% cut in emissions!
The Conversation 27 April 2015