CIAB Market & Policy developments 2005/06 - IEA

collaborators.
• The CO2CRC Otway Geosequestration Demonstration Project. This AU$40million
project is underway and will inject up to 100,000 tonnes of CO2 into a deep
geological formation in south west Victoria, monitoring and verifying that the carbon
dioxide is securely stored in a depleted gas reservoir. The project is the most
extensive undertaken anywhere in the world and includes monitoring of the
atmosphere, groundwater and sub-surface. It is an important step forward in
demonstrating geological sequestration as a technology that could be used safely
to make deep cuts in emissions of greenhouse gases to the atmosphere.
261. These activities are complemented by input to policy and outreach activities aimed at
raising the awareness of governments and the public of the potential of low emissions
coal technology to reconcile economic and environmental objectives, and gaining their
acceptance of it as a key element of Australia’s climate change response.
Japan
262. Japanese Power Utilities have been eager to participate in technological cooperation
with developing countries. They have recently been active in a thermal efficiency
improvement program under the framework of Asia Pacific Partnership; and have also
initiated transfer of coal-fired power station maintenance technologies to China.
4.1.3 Emissions Trading
United States of America
263. The United States of America has not, to date, adopted an official carbon emissions
trading program although a number of companies are engaged in informal carbon trading
programs and regional carbon trading programs are being proposed. Several legislative
proposals that have been introduced in both the Senate and the House include
requirements for emissions trading but legislation is unlikely to pass in 2007 or 2008.
264. The Chicago Climate Exchange was established as a private industry, self-regulatory,
voluntary organization that manages a market for trading greenhouse gas emissions.
Although located in the US, Chicago Climate Exchange participation is multi-national.
The exchange began continuous electronic trading of greenhouse gas emission
allowances in December 2003.
265. As can be seen in Chart 9, trading volumes have been very volatile but have increased
substantially to average over 1,700,000 tonnes per month, with trading in some months
reaching almost twice that level.
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