Kyoto Protocol Now in Force: Implications for Australian Business

The Kyoto Protocol, an international treaty designed to slow down global warming by lowering greenhouse gas (GHG) emissions and introducing an international carbon trading scheme, came into force on 16 February 2005. Although the protocol has been ratified by 141 nations, Australia, together with the United States, has steadfastly refused to ratify the protocol.

This article considers the Commonwealth Government's policy on the protocol and its likely implications for Australian business. While the Australian Government is not a signatory to the protocol and cannot participate in any of its market-based mechanisms, there is still scope for Australian business to pursue opportunities in those countries that are a party to the agreement.