A detailed look at Australia’s abatement challenge

The cost of future greenhouse gas emissions abatement is dependant on the size of the challenge facing Australia in order to achieve it’s climate commitments. The Climate Change Authority’s proposal for the adoption of a 15% emissions reduction target is likely to place public pressure on the government in the design of its policy, yet is unlikely to result in any meaningful policy shift.

Given the changing nature of Australia’s policy landscape, in this Market Briefing we review the potential implications for the governments’ proposed Direct Action Plan in order to understand how Australia’s abatement challenge may translate into an annual abatement trajectory – a key driver of the emerging DAP-ERF market.

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