IFSA supports carbon pollution reduction scheme

Kevin Rudd

The Investment and Financial Services Association (IFSA) has shown its support of the introduction of a national carbon pollution reduction scheme.

IFSA has released a submission in response to the Rudd Government’s Carbon Pollution Reduction Scheme green paper, supporting the introduction of the scheme, including the proposed cap and trade framework.

“IFSA members are aware of the impact of climate change and on the wider economy and value of investments. We therefore support the Government’s commitment to move forward on this matter to ensure that a reduction scheme for carbon emissions is managed effectively,” IFSA deputy chief executive John O’Shaughnessy said.

“IFSA is of the view that the design of an emissions trading scheme should facilitate market efficiency and integrity and minimise uncertainty, along with the economy-wide costs of reducing emissions,” he said.

IFSA outlined a number of principles it believes will “best contribute to the development of a workable carbon emission reduction program”.

They include an argument for an open and efficient market setting the carbon price, and consistent, comprehensive disclosure from the Government, including its rationale and methodology for setting scheme caps and gateways.

The industry body has also called for a “strong monitoring, reporting and assurance regime” to ensure that emissions reported under the scheme are accurate and transparent.

IFSA believes carbon permits should be transferable, and able to be held by any legal entity or person. The achievement of “a stable and credible carbon market is paramount to maintaining confidence in the market”, a statement from the group said.