A Case for Advancing Carbon Markets

By Alexander Jayasuria, Curtin University, UNFCCC, 2021

Alexander is studying a Bachelor of Commerce at Curtin University. His policy paper focuses on A Case for Advancing Carbon Markets.

Executive Summary

Continued and excessive pollution has led to a changing climate and deteriorating natural environment. By failing to place a monetary price or tax on these emissions, global economies have essentially allowed for excessive pollution to continue, thereby exacerbating the effects of climate change. Examples of such economies include Australia, where for the better half of a decade now, it has struggled to build political consensus for a broad-based carbon tax. Polluters are instead subject to a market-based carbon price, which is determined in the domestic market for carbon offsets.

This paper examines how best to expand Australia’s domestic carbon market, whilst also buttressing the integrity of both demand and supply of carbon offsets. Recommendations include the accelerated development of the Indo Pacific Carbon Offset Scheme, and the reformation of the current governance and regulatory structures for carbon offsets. The implementation of these recommendations will result in an expanded, high-integrity market price on carbon emissions. This could negate the need for a broad-based carbon tax, and allow for an accelerated, and coordinated regional effort in emissions reductions.

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