AUSSIES IN EMISSIONS TRADING TRIAL RUN

Test drive on carbon trading
Valerina Changarathil, March 23, 2009 (Adelaide Advertiser/Sunday Mail)

"Australian businesses will get a chance to test drive the Federal Government's Carbon Pollution Reduction Scheme in May, through KPMG's new auction simulation program.

"A national pool of up to 100 participants will buy and sell ``dummy'' permits based on their actual emissions under the Carbon Permit Auction Simulation program, to test their readiness ahead of the proposed rollout of the scheme next year.

"KPMG, which has held such programs in the UK, will hold three half-day auctions over the program's six months and offer participants anonymity."

The real world of emissions trading. (click to enlarge)

"There will be a cap on the number of permits auctioned off and the price of the permits will be demand-driven…For [Australia] the simulation includes trading forestry/carbon offsets…KPMG claims the program is the first of its kind in Australia and expects strong participation…[so companies can] understand the "complicated'' CPRS scheme in a "learn-by-doing'' fashion…

"The simulation will help businesses consolidate and field-test emissions data collection systems and procedures, bring in a disciplined approach to managing greenhouse gas emissions and price-test carbon reduction strategies.

"Each participant will receive a report and performance feedback at the end of the exercise…"