The introduction of an Australian emissions trading scheme signals the opportunity for profound, long-term structural change for Australia, according to this report. The paper argues for the need to design the scheme on the basis that it will ultimately be part of a global agreement on greenhouse gas mitigation.

The Garnaut Climate Change Review’s approach to mitigation was initially set out in the Interim Report in February 2008. This paper focuses on the key role for an emissions trading scheme in those mitigation efforts. It recommends an approach for Governments to consider in developing and delivering an effective ETS. Further consideration, informed by detailed economic modelling, will be given to these issues in the full reports of the Review.