The emissions auctions will miss our target

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

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