Presentation is loading. Please wait.

Presentation is loading. Please wait.

Auckland Wellington Christchurch www.buddlefindlay.com Alastair Cameron Senior Solicitor 31 July 2009 IPS/NZCCRI Seminar Emissions Trading – Harmonisation.

Similar presentations


Presentation on theme: "Auckland Wellington Christchurch www.buddlefindlay.com Alastair Cameron Senior Solicitor 31 July 2009 IPS/NZCCRI Seminar Emissions Trading – Harmonisation."— Presentation transcript:

1 Auckland Wellington Christchurch Alastair Cameron Senior Solicitor 31 July 2009 IPS/NZCCRI Seminar Emissions Trading – Harmonisation with Australia: Issues and Options

2 2© Buddle Findlay 2009

3 3 Question To harmonise or not to harmonise? Should that be the question?

4 4© Buddle Findlay 2009 Outline Levels of harmonisation – options Achieving harmonisation – Specifying the parties harmonisation commitments – Institutional and operational structures required to support harmonisation Issues with harmonisation Conclusions

5 5© Buddle Findlay 2009 Options for levels of harmonisation Level 1:Voluntary adoption of key design features, but no mutual recognition of domestic units Level 2:Mutual recognition of domestic units, enabling trading between the schemes Level 3:Full harmonisation (effectively one scheme) (Senator Penny Wong and Hon Dr Nick Smith, 19 March 2009)

6 6© Buddle Findlay 2009 Making harmonisation commitments Bilateral treaty – Advantages (legally binding, provides certainty) – Disadvantages (time consuming to negotiate, difficult to amend or withdraw from) Political agreements – Advantages (flexible, carries political weight) – Disadvantages (not legally binding, uncertain outcomes) Mutual domestic commitments – Advantages (flexible) – Disadvantages (subject to unilateral change)

7 7© Buddle Findlay 2009 Institutional and operational support Co-management / joint governance Joint regulatory body Consultations, e.g. regular meetings of ministers and/or officials Amendments and reviews

8 8© Buddle Findlay 2009 Possible frameworks TEXTSUPPORT LEVEL 3: Full harmonisation (one scheme) Treaty Joint regulation (political and operational) LEVEL 2: Mutual trade of domestic units Treaty Political cooperation agreement Joint regulation Consultation LEVEL 1: Voluntary adoption of key design features Political cooperation agreement (but not essential) Ongoing consultation likely

9 9© Buddle Findlay 2009 Issues Control Flexibility Transparency Legitimacy

10 10© Buddle Findlay 2009 Conclusion – to harmonise or not to harmonise? Not just a question of the economic costs and benefits Also important to consider broader issues presented by harmonisation Better to focus on getting our own scheme right first?

11


Download ppt "Auckland Wellington Christchurch www.buddlefindlay.com Alastair Cameron Senior Solicitor 31 July 2009 IPS/NZCCRI Seminar Emissions Trading – Harmonisation."

Similar presentations


Ads by Google