The Australian government and the public service that advises them appear to be under a grand delusion that we can create a seamless global carbon market. Yes, theoretically, full international trading of emission permits would be by far the most efficient way to stabilise carbon emissions and reduce the risks of climate change.

Yet carbon markets are inherently a product of national politics at this stage, and these politics are still in a state of flux. Each carbon market that is emerging chooses different rules as to what sectors it includes, and how the supply of carbon permits and credits is determined. What’s more these rules could be and are likely to be regularly and suddenly changed by the stroke of a pen. When we recognise one-for-one their (Europe’s) carbon permits or credits as equivalent to our own, we to a large degree inherit all the political uncertainty surrounding their markets.

— Tristan Edis,  Labor’s global carbon delusion, Climate Spectator