The first formal trades of carbon credits under an Australian first greenhouse gas emission trading system for Local Governments are expected to take place by March this year.
In early 2008, 12 New South Wales councils agreed to participate in the trial of the ‘Local Government Emissions Trading Scheme’ over the course of five years.
The trial intends to reduce the greenhouse gas emissions of participating councils by four per cent each year, or 20 per cent over the full period of the trial.
Participating councils recently finalised a register of their greenhouse gas emissions to provide a starting point for emissions trading under the scheme.
While no interim trades have yet been made through the scheme, it is understood the ability exists for participating councils to make such trades prior to the formal carbon credit trading commencement date.
The price of the carbon credits under the scheme has been set at $20 per tonne of greenhouse gas emissions, but there will be provision for this price to be altered to take into account external factors during the initial two years of the trial.
While the 12 councils that will initially participate in the scheme were finalised last March, it is anticipated additional councils will be able to join the scheme in the future.
The participating councils comprise nine metropolitan and three regional municipalities. Randwick City Council has led the development and administration of the scheme so far. Other councils involved are Ashfield, Auburn, Canada Bay, Cootamundra, Cowra, Kiama, Lane Cove, Leichhardt, Marrickville, Sydney and Willoughby.
Randwick Mayor, Councillor Bruce Notley-Smith, said he was proud the Local Government emissions trading scheme originated from a suggestion by a Randwick resident.
Establishing such a scheme was the winning entry of a local Coogee resident, who submitted the idea to Randwick’s ‘Best GRIN’ (Green Innovation) competition in 2006.
“Randwick City Council expanded the idea further and has been working to develop the concept since September 2006,” Mayor Notley-Smith said. “We then invited all councils across New South Wales to participate in the scheme.”
For further information, contact Randwick City Council’s Manager of Sustainability, Peter Maganov, on (02) 9399 0554 or email peter.maganov@randwick.nsw.gov.au
