Bracks tours US carbon trading floorEmail Print Normal font...

Bracks tours US carbon trading floor
Email Print Normal font Large font May 10, 2007 - 10:59AM

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AdvertisementVictorian Premier Steve Bracks has toured a "carbon trading floor" in the United States and says Melbourne should have a similar facility once emissions trading begins in Australia.

Mr Bracks visited Credit Suisse's Global Carbon Trading floor in Manhattan overnight, to witness the buying and selling of carbon credits in scenes similar to the floor of a stock exchange.

He said the majority of the world's carbon trading floors were based in Europe, several major financial institutions were also handling the trade in the US and Australia would eventually follow.

"As a national emissions trading scheme develops I believe we will see more carbon trading desks, like the one at Credit Suisse, develop in Australia within a few years," Mr Bracks said.

"(And) given Victoria's strengths in financial services and our leadership in renewable energy and low-carbon solutions, I believe Melbourne would be a logical place for such desks to become based."

The trading desks allow carbon credits - which a company can obtain by reducing its greenhouse gas emissions - to be sold to other emitters in participating countries, and this process creates an incentive to reduce emissions.

Mr Bracks said the Australian states and territories were committed to starting a national emissions trading scheme by 2010, and "we would continue to urge the federal government to sign up".