Implications of the carbon pollution reduction scheme

摘要

The CPRS imposes an obligation on emitters in covered sectors to acquire and surrender permits for every tonne of carbon dioxide which they emit. The government controls emissions by restricting the supply of permits, and believes a fluid carbon price will develop as market participants continually assess their own requirements for permits, the cost of purchasing these on market given their limited availability, and the cost of abatement opportunities available to them.