Australia and Europe would discuss how to link their emissions trading schemes (ETS) in a bid to tackle global climate change, Australian Prime Minister Julia Gillard said on Monday.
European Commission (EC) president Jose Manuel Barroso met with Prime Minister Julia Gillard in Canberra of Australia on Monday for talks ranging from trade and security to climate change. It was the first visit by an EC president to Australia in three decades.
The two leaders announced preliminary talks would be held on linking Europe's six-year-old scheme with Australia's budding carbon market.
Barroso said he was pleased to see Australia going down the path of carbon pricing, as it was important the carbon market expand.
"We have been reducing emissions -- that is a reality -- but also we believe that this kind of regulation and this kind of market is the most cost-effective way of promoting innovation and promote new business in terms of green growth," he told reporters in Canberra on Monday.
He said that spending money on addressing climate change was vital even though Europe was currently facing a "difficult economic situation".
Meanwhile, Gillard said Australia was keen to work with Europe on carbon pricing and would be arguing in international forums for a global carbon market.
"Both Australia and the EU recognize that carbon markets are the most cost-effective way of reducing greenhouse gases and creating clean energy jobs," Gillard told reporters.
"The president and I have agreed today to establish senior officials talks to discuss economy-to-economy measures we can jointly undertake to link our emissions trading schemes at the appropriate time in the future," she added.
During the meeting, Gillard and Barroso also discussed global economic challenges, trade liberalization, and establishing a treaty-level agreement between Australia and the EU.
Climate Change Minister Greg Combet also on Monday met with his European counterpart Connie Hedegaard to discuss Australia's plans and global trends.
The $24.5 a ton of carbon tax will start from July 1, 2012 in Australia. The tax is set to increase 2.5 percent each year for three years, and will switch to Emissions Trading Scheme in 2015.