The international carbon trading industry in 2008 was assessed at $118 billion and is set to rise substantially with Governments and industry looking to reduce their emissions impact.
Governments around the world are setting target emissions for large emitters. Where the target is exceeded, penalties occur unless the emitter can purchase carbon credits to offset their emissions.
Carbon credits are measured in tonnes of CO2. For example one carbon credit equals one tonne of CO2-e (Carbon Dioxide Equivalent).
Carbon currently trades between $5AUD/t CO2-e and $35AUD/t CO2-e on the voluntary market and varies from region to region. Once the proposed Carbon Pollution Reduction Scheme (CPRS) is introduced in 2011, the price for carbon to be traded in Australia will become clear.
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