EU-Australia cooperation on environment

In June 2007, European Commissioner responsible for External Relations, Benita Ferrero-Waldner, met with Australian Foreign Minister Alexander Downer to discuss climate change and the environment, among other issues. During her visit to Australia, the Commissioner said, "Energy security and climate change are high on the EU's agenda with all its international partners. The EU has warmly welcomed the recent announcement that Australia will develop an Emissions Trading Scheme, since market based mechanisms have an important role to play in stemming greenhouse gas emissions.  The EU is keen to work with all its partners to improve energy security and to seek an international agreement on an effective post Kyoto system.  The European Union will make its own contribution to addressing the challenge of climate change through a package of ambitious measures adopted in March, which commits EU Member States to a 20% reduction in greenhouse gas emissions by 2020."

The EU and Australia shared further knowledge on climate change when Commission official, Vicky Pollard, visited Australia at the end of June 2007. Vicky met with government advisors, industry representatives and academics to discuss climate change issues, including the EU's emissions trading system. Ms Pollard's visit came at an  interesting time, just weeks after  the release of  the report by the Australian Prime Minister's Task Group on Emissions Trading, which proposed the possibilities for  an  emissions trading scheme  in Australia.

In her discussions, Ms Pollard outlined the EU's Emissions Trading Scheme (EU ETS), the cornerstone of the EU's climate change policy. In a  3-year  'learning by doing' phase, the EU has built an  ETS  that now accounts for 80% of the global carbon  market. The second trading phase of the EU ETS, from 2008-12, coincides with the first commitment period under the Kyoto Protocol. The EU views the development of the global carbon market as a key tool in tackling global climate change. The EU is looking to explore linking the EU ETS with other mandatory cap and trade schemes with similar levels of ambition, but it is clear that absolute emissions reduction commitments are essential as the backbone of a global carbon market.