The Australian and Tokyo Emissions Trading Schemes: two ways to skin a cat

As part of its response to climate change the 1997 Kyoto Protocol envisages the employment of emissions trading schemes ("ETS") to provide a market based incentive to reduce emissions and to engage in carbon sequestration activities. Such schemes would also serve to encourage the creation of an industry focused on energy conservation and alternatives to energy production – so called "green" or "clean" energy. Whilst a number of jurisdictions have introduced ETSs there is no definitive model. In 2010 the Tokyo Metropolitan Government ("TMG") established an ETS and Australia had a comprehensive nationwide regime in place from 1 July 2012 until 30 June 2014. Notably the approaches adopted in the two jurisdictions have marked differences