By Nigel Brunel, Director, Institutional Commodities (New Zealand) – Jarden
Carbon markets in Asia and the Pacific encompass some of the most long-established in the world – including those in Australia, New Zealand, and South Korea. The region will also collectively form the largest market grouping, once the Chinese ETS breaks into full stride. It also contains many of the world’s smallest nations, and some of the those most vulnerable to the effects of climate change.
Australasia occupies an interesting space in carbon markets. Australia has an opportunity to become a leader in this space, and there is a sense that further developments are in the making. Australia does financial markets very well, and my expectation is that it will become a major carbon market both for compliance and voluntary markets.
New Zealand has the second oldest federal ETS globally – which has been in operation since 2008. The country has set a target of net zero by 2050 for CO2 emissions, and its ETS will play a key role in this.
Globally, strong momentum has now been built for carbon markets – with the start of the Paris Agreement, the re-emergence of the US in the carbon world and the announcement of net-zero by the G4. There is also a clear movement in voluntary markets, which is set to provide the bottom-up incentive to the top-down compliance markets and global policy formation process. Companies are moving quickly, and it’s all contributing to the collective action – across countries and markets – to put us on the path to maximising our emissions reductions.
The opinions and views are expressed as at the time of publication, and are not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Australia Pty Limited ACN 608 611 687 holds AFSL 485351 and further information is available at www.jardengroup.com.au.
The 8th Australasian Emissions Reduction Summit is supported by Jarden. Nigel Brunel is a panellist in the workshop titled The State of Asia Pacific Carbon Market Development.