This document compares carbon emissions trading systems in Australia, California, and the European Union. It provides macro data on population, GDP, national greenhouse gas inventories, energy production and consumption for each region. Emissions profiles show the largest sources of emissions for each location. The trading systems are then compared based on factors such as targeted reductions, covered sectors, carbon pricing mechanisms, use of offsets, and penalties for non-compliance. The rationale section explains that while the Australian and Californian systems are most relevant locally, the EU ETS was also included due to its importance as the largest emissions trading market.

1. CARBON EMISSIONS TRADING SYSTEMS
A comparative study: CEF - AB32 - EU ETS

2. MACRO DATA COMPARISON
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
Population 22.5 million (2011)
GDP US$ 1,507 billion (2011)
Nat. GHG inventory 543 million tCo2e (2010 ex LULUCF)
(pg. 4)
600 million -2009 incl LULUCF
Co2e per capita 27.3 tCO2e p.c / year (2009 incl LULUCF))
Energy production in Petajoule 17,769 PJ (2008-09)
= 2.4% of world production
Energy consumption in Petajoule 5773 PJ (2009-09) (=32% of total
production)
Exported energy value / A$68.5 bio / A$244.5 bio = 28% (2010)
Total Exports (page 18)
GHG intensity of economy 841 t Co2e incl LULUCF / US $1 million
(2005)
Carbon intensity of electricity 863.1 g Co2e / kWh (2005)
production

3. AUSTRALIA’S EMISSIONS PROFILE 2009
Waste 3%
Deforestation & Forestry 3%
Industrial Processes 3%
Fugitive Emissions 7%
Electricity Generation
37%
Transport 15%
Agriculture
15% Direct fuel
combustion
15%

4. CALIFORNIA’S EMISSIONS PROFILE 2008
Not specified 3%
Commercial 3%
Agriculture & Forestry 6%
Residential 6%
Year 2008
Total Gross emissions: Transportation
477.7MMT CO2e 36%
Electricity Generation
(In State)
12%
Electricity Generation Industrial
(Imports) 21%
12%

5. EU27 EMISSIONS PROFILE 2008
Other 0.2%
Waste 2.8%
Agriculture
9.6%
Industrial Processes Energy Supply
8.3% 32.6%
Transport
19.5%
Stationary Energy
27%

6. ETS COMPARISON
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
General Focus Focus: electricity + transport
2020 target Reach 1990 level (=427 million tCo2e)
2050 target 80% on 1990 level
Covered GHG inventory Reporting: 6 GH Gasses
Cap and trade: 6 Kyoto GHGs + NF3 =
85% of state inventory
Reporting threshold Registration, reporting (Scope 1
+indirect energy purchases) and
verification compulsory
25,000 MTCO2/yr except for electricity
(co)generation (2,500 MTCO2/yr)

7. ETS COMPARISON II
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
Nr of entities reporting 777 (2010) 2011: 11,000
Trading threshold In general 25,000 tCO2e scope 1 but Thermal input > 20MW
10,000 tCO2e for certain landfills (page or activity specific capacity thresholds
105)
Nr of entities trading 294 facilities 2011: 11,000
Start date 1st July, 2012 Period I: 01/01/2005
Period II: 01/01/2008
01/01/12: Aviation
Period III: 01/01/13
Phases 1st: July12 - June15 1st: 2005 - 2007
2nd: July15 - June18 2nd: 2008 - 2012
3d: July18 - … 3d: 2013 – 2020
Allowances issuance Caps May14: announce 2015-19 caps 2008-2012 = 2,086 Mio t
June16: announce 2020 cap 2013-2020 = 2,039 Mio t
June17: announce 2021 cap - 37 Mio t per annum
AT MINIMUM meet 5% target

8. ETS COMPARISON III
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
Carbon Unit denomination
Price (Px)
Cap / Floor Price
Domestic Offsets/ credits FIXED px period: can only use compliance Max 8% per facility, initially NAFTA ONLY (Theoretically): credits from projects
ACCUs for up to 5% of liability w/ quant. and qualitative restrictions: reducing emissions not covered by the
FLEX px period: Min 50%up to max 100% ARB offsets ETS (Q22)
of compliance must be met with domestic Sector offsets (incl forestry)
credits or permits Early action credits
Importing international CERs, ERUs and RMU’s will be acceptable The possibility for linkage to external ETS’ JI / CDM credits but (increasing)
units subject to qualitative and quantitative and their approved offsets has been left qualitative and quantitative restrictions
restrictions (like EU ETS). open.

9. ETS COMPARISON IV
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
Exporting domestic units/
allowances
Banking/borrowing
Cycle

10. ETS COMPARISON V
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
Auctions
Free allowances

11. ETS COMPARISON VI
AUSTRALIA CALIFORNIA EUROPEAN UNION
CEF AB 32 EU ETS
Penalties
Tax
Treatment of Fuel

12. ETS COVERED SECTORS/ACTIVITIES
CEF AB 32 EU ETS
Combustion installations
Mineral oil refineries
Coke ovens
Metal ore roasting/sintering
Pig iron/steel
Cement clinker or lime
Glass including glass fibre
Ceramic products by firing
Pulp, paper and board
Agriculture
Land use sector
Transport sector
Carbon Dioxide suppliers
Cogeneration
Electricity - first deliverers
Electricity - Importers
Electricity self-generation
Hydrogen production
Nitric Acid production
Petroleum and Natural gas systems
Suppliers of liquefied petroleum gas -LPG
Suppliers of Natural gas
Suppliers of RBOB and distillate fuel oil

13. RATIONALE
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14. RATIONALE
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