So much for that global “free” market.
Scott the trader writes to explain that the EU “CER” credits are the ones people can buy and exchange for Australian Carbon Credit Units (ACCUs) but they have sunk to $4. The more expensive $9 EUA units that most commentators mention, are not exchangeable in the Australian market:
“The EU CER price is equivalent to about A$3.80 per tonne… Almost $20 below Australia’s fixed price. These are the products most comparable to Australia’s $23/Tonne as it will be CERs that we can surrender instead of Australian Carbon Credit Units (ACCUs) to satisfy an Australian Clean Energy Scheme liability. It is incorrect as most media commentators are doing in Australia to compare to EUAs which are at about $9 Australian. Australia cannot access EUA’s to satisfy our carbon liabilities. The only comparison is $3.80/T for a CER and $23/T for an ACCU.”
So most commentators are comparing the wrong type of carbon credits, and the Australian market is even more overpriced than people recognize. Australians will be paying 500% more than the largest carbon market in the world.
The Australian scheme is the most expensive, and most ambitious in the world. On top of that we are a distant market based heavily on fossil fuels.
See Jo Nova for more
This provides a classic comparison of Capitalism (free markets) versus Marxism (government ownership and control of all markets), especially because the ‘commodity’ being bought. sold, and exchanged is completely imaginary.