While Australia goes to the polls this weekend, Europe continues to take steps towards reforming its oversupplied carbon market, with growing support for ‘backloading’ suggesting that agreement is likely by the end of the year. With the Australian Carbon Price Mechanism unlikely to be repealed by a hostile Senate, the outcome of European reform remains a critical watch for Australian market participants and Parliamentarians – particularly should a compromised outcome emerge on the Australian carbon price prior to July 2014.
