SYDNEY (Reuters) - Australia's government is confident parliament will pass its carbon tax scheme within months, but financial institutions and carbon traders say the risk of it again being rejected will leave firms reluctant to hedge by buying carbon offset units.
However, high carbon emitting Australian firms that also operate in the EU and New Zealand, where trading schemes already exist, may seek to purchase additional carbon emission reduction units (CERs) as they could use them offshore if the Australian scheme does not materialize, said traders.
