Document summary
The Australian Government’s proposed Carbon Pollution Reduction Scheme (CPRS) failed to pass a Senate vote, but the Government has indicated its intention to re-submit the proposal for an Australian ETS before December’s Copenhagen conference. In Deutsche Bank’s view the proposed CPRS would be “technically superior” to the EU-ETS in key areas. The scheme would initially cover around 75% of the country’s GHG emissions (compared with only 45% for the EU-ETS), with power generation, industry, and transport included from the start. The scheme would create significant demand for CERs over 2011-20, thereby limiting Australian carbon prices while boosting global emissions-reduction efforts.