Australia’s carbon scheme subject to political risk

The Australian government has launched a transitional carbon scheme that fixes the price of carbon at A$23 (US$23.63) a tonne and is the first step in a tradable carbon market set to start in 2015. While the new market could potentially create an Asian hub for carbon, political risk remains high as the mandate is domestically unpopular, with a chance it could be dismantled after the next national elections, say market observers.

The new law came into force on July 1, 2012 and currently targets

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