Tepid market response to Commission’s advice – auction less than a week away

By Liz Kivi

The Climate Change Commission’s call to drastically reduce Emissions Trading Scheme auction volumes has barely caused a blip on the secondary market – suggesting participants don’t think the government will follow the advice.

But the government will need a very good reason not to follow the commission’s recommendations, and the fact that driving up the carbon price will increase inflation won’t cut it, nor will a desire to boost the coffers to enable tax cuts, according to an expert.