Australia's biggest power firms launched carbon trading and green-energy investment ventures this week as they brace for possible pollution limits that could be imposed as soon as the end of this decade. While Australia has refused to sign the Kyoto protocol, some local governments have pushed for a cap-and-trade scheme on carbon emissions and national leaders have recently softened their opposition to participating in a global trading system.

On Tuesday, Origin Energy Ltd., Australia's second-largest power retailer, launched a carbon reduction scheme that allows businesses and individuals to offset their greenhouse gas emissions, enhancing their sense of corporate responsibility. The move comes a day after AGL Energy Ltd., the top power retailer, said it had become the first joint utility outside of North America to join the Chicago Climate Exchange Inc. (CCX) so it could trade carbon credits. The ventures reflect concerns that state governments would implement a carbon trading scheme by as early as 2010 as Australia, the world's second-biggest steam coal exporter and a close US ally, joins in the global climate debate.

Australia has said in the past that carbon taxes and carbon trading would adversely affect the resources industry, but the government has softened its tone recently and said Australia could participate in carbon trading as part of a global system. The local governments in Queensland and Western Australia, the centre of Australia's current resources boom, have signed on to a state-driven carbon trading scheme.

Green strategy
Under Origin's scheme, companies wanting to reduce their greenhouse gas emissions can purchase carbon offsets, with the money spent on projects that reduce emissions, such as tree planting or renewable energy. National Australia Bank Ltd., Transurban and Lend Lease are among the participating companies.
(Por Fayen Wong, Planet Ark, 21/03/2007)