Australia, Canada Without Carbon Links May Lack Liquidity

Carbon trading in Australia and provinces of Canada may lack needed liquidity unless they link with other markets, according to an adviser at the Center for European Policy Studies.

The countries should link their proposed markets to existing programs in Europe, the center’s Andrei Marcu said today at a conference in Bangkok. South Korea’s efforts to start a carbon market in 2015 should also tie up with Europe to boost trading liquidity, he said.

“Margins are currently too small for traders in the carbon market,” he said. “Emerging carbon programs across the world can improve margins in the long-term.”

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