KEY POINTS:
Australia will seek to develop linkages between its emissions trading scheme and New Zealand's "over time", Treasurer Wayne Swan said yesterday.
The Australian scheme outlined on Wednesday erects several obstacles to direct bilateral linkage between the schemes in the short term.
It will have a price cap and put limits on the ability of emitters to use imported Kyoto credits to meet their obligations. The New Zealand scheme does neither.
Nor will it be possible to convert Australian carbon permits into assigned amount units and export them.
But in a press briefing after discussions with Finance Minister Michael Cullen yesterday, Swan said, "It is desirable that we work together over time and there are provisions in our scheme for international linkages over time."
Like New Zealand, Australia was starting gradually. The schemes were different because the economies were vastly different, he said. "And so are the measures to assist businesses and households. "
