Australian and European Union officials will discuss how to link their emissions trading schemes in the future, Prime Minister Julia Gillard says.
Ms Gillard met European Commission president Jose Manuel Barroso in Canberra on Monday and discussed climate change and a raft of other issues.
The prime minister said Europe was a pioneer in reducing carbon emissions having established an ETS six years ago.
“Both Australia and the EU recognise that carbon markets are the most cost-effective way of reducing greenhouse gases and creating clean energy jobs,” Ms 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.”
The leaders also discussed global economic challenges, trade liberalisation, and establishing a treaty-level agreement between Australia and the EU.
Mr Barroso praised Ms Gillard’s plan to price carbon.
“Australia’s decision to put a price on carbon emissions in our view is an important step,” he said.
The European Commission president said a price on carbon was the “most cost effective way” to attack climate change and was a “great green business opportunity.”
Mr Barroso also said the European Commission had sought a mandate from its 27 member states to negotiate a cooperation framework treaty with Australia.
He said the mandate could be signed next month.
“It will serve as an umbrella for the many areas of our thriving cooperation.”
Ms Gillard said the framework treaty was about Australia and Europe taking their relationship to new heights.
“We share a strategic outlook and economic outlook about strengthening global growth, trade liberalisation, about making sure the world doesn’t take a step backwards towards protectionist measures,” she said.
“It’s important we step up to a new level of formality.”
On climate change, Mr Barroso said it was also important to enlarge the global carbon market initially launched in Europe.
He said many nations were now moving in this direction providing a clearer indication of how to best deal with climate change.
“The more like-minded partners working in this direction the better,” Mr Barroso said.
Australia is set to introduce a carbon tax in mid-2012 which will then transform into an ETS three years later.
“We will be raising our voice … for the enlarging of global markets and for action on climate change,” Ms Gillard said, adding Mr Barroso’s comments showed what was happening around the world.
“As I have consistently said to the Australian people, the risk for us with our very carbon intensive economy is we get left behind as the clean jobs, green jobs of the future are created.”
