Energy Efficiency Economics & Markets

Benefits and Costs of JI and CDM for Australian Industry

Client: International Greenhouse Partnerships Office (IGPO)

EnergyConsult?staff managed a study of the benefits and costs for Australia and for Australian industry of early participation in Joint Implementation (JI) and Clean Development Mechanism (CDM) projects. This study researched potential price trends for greenhouse gas abatement ‘credits' obtained under the flexible mechanisms and regulatory, economic and technical factors that might influence such trends and what barriers there might be to Australian industry's participation in such mechanisms. The assignment involved understanding the potential of the project-based mechanisms under the Kyoto Protocol, assessing the present perspectives of industry stakeholders towards JI and CDM projects; reviewing the current costs of hundreds of abatement projects being conducted internationally; developing abatement cost curves for developing scenarios and forecasts of future abatement demand, supply and costs; and examining potential barriers and the direct benefits from early participation of Australian industry from involvement in JI and CDM projects.