Carbon Credit Trading with the rest of the World

Industrialized countries are struggling to meet the Kyoto Protocol set targets because the cost of reducing Carbon Dioxide (CO2) is in the order of $AUD500 for every tonne of reduction of CO2, in contrast to $AUD25 per tonne for developing countries.

The developing countries emission levels are substantially below the target fixed by the Protocol. Consequently, the developing countries are permitted to sell their surplus credits to the industrialized countries.

Furthermore, companies in the industrialized countries who are unable to meet their targets can buy credits from companies that have surplus credits from developing countries.

There are reports that the sale and trading of Carbon Credits is a new global commodities market with more than €145 billon in present day value.