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MARKET UPDATE: Re-thinking the Direct Action Plan

A new study from market analysts, RepuTex, indicates that Australia’s 5 per cent emissions reduction target may be within reach for the government’s Direct Action Plan, with amendments proposed by independent Senator Nick Xenophon to potentially have a considerable impact on the scheme’s effectiveness.

We forecast cumulative abatement from the ERF may grow from 67 Mt CO2-e to 183 Mt CO2-e by 2020 – an increase of more than 2.5 times base case levels – should proposed amendments be incorporated into the scheme, such as contract periods aligned with the target timeframe and the design of a more effective reverse

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