Tag: Sydney Futures Exchange

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Australia

August 16, 2000 – No future for the Sydney Futures Exchange

Twenty five years ago, on this day, August 16th, 2000,

“However, 12 months later, the Sydney Futures Exchange announced that it had dropped its proposal to establish a trading centre for carbon credits. The decision was made in the context of the Exchange demutualising and moving to a public company. A spokesman noted that the commercial viability of carbon trading was not likely to be in a time frame proportional to other business initiatives. As well, political uncertainties existed over the implementation of the Kyoto protocol limiting the emission of greenhouse gases.44”

“SFE drops plan to trade ‘fresh air’ carbon credits” in Reuters News Service, 16 August 2000.

From 2002 Stewart Smith Greenhouse Update

The amount of carbon dioxide in the air was 369ppm. As of 2025, when this post was published, it is 430ppm. This matters because the more carbon dioxide in the air, the more heat gets trapped. The more heat, the more extreme weather events. You can make it more complicated than that if you want, but really, it’s not. Fwiw, I have a tattoo of the Keeling Curve on my left forearm.

The broader context was that one form of putting a price on carbon – a straightforward tax – had been handily defeated, twice, in the early 1990s. Since then, interest had grown in “emissions trading”. The Kyoto Protocol, which Australia had signed (but NOT yet ratified) had scope for this. There had been a real push for carbon trading in Australia (consultants and bankers were going to make money) and it would ‘efficiently’ reduce emissions (yeah, sure).

The specific context was that it had become obvious that there would not be an early ratification of the Kyoto Protocol, and the ducks were not all in a row and so… plug pulled.

What I think we can learn from this – emissions trading might have helped a little bit, at the margins, in a perfect universe. But if we lived in a perfect universe, we wouldn’t be in this mess. Also, in politics, sport, you name it, timing is everything.

What happened next – the Chicago Futures Exchange (whatever it was called), met a similar fate, a few years on.

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong? Please do comment on this post, unless you are a denialist, obvs

Also on this day: 

August 16 1984 – “Why are they lying to our children?” – what a 40 year old propaganda campaign can tell us about today (and tomorrow’s) cultural battles. #Climate #CorporatePropaganda

August 16, 2002 – “Oil Lobby Urges Bush to Keep Climate Change Off the Table at Earth Summit”

August 16, 2010 – Polar Bears going through the motions 

August 16, 2012  – Tony Windsor calls Tony Abbott an “absolute disgrace” on carbon tax/climate 

Categories
Australia Carbon Pricing

September 1, 1998 – Sydney Futures Exchange foresees a bright future. Ooops.

Twenty years ago, on this day, September 1, 1998, carbon trading seemed to be coming to Australia…

SYDNEY (Dow Jones)–Sydney Futures Exchange said Tuesday it has formally established the Australian Emissions Trading Forum to provide opportunities for members to exchange information on greenhouse issues and encourage debate on emissions trading.

An advisory committee to the AETF, comprising representatives from a range of key industry and government agencies, has also been formed, the SFE said in a statement.

“There is growing interest in the prospect of greenhouse gas emissions trading as a means of meeting our greenhouse target, however, many potential stakeholders have found it difficult to obtain information about how the various schemes might develop,” Les Hoskings, SFE’s chief executive said.

At the U.N. climate change convention in Kyoto, Japan, in December 1997, a number of developed countries made binding targets to reduce greenhouse gas emissions. Australia has committed to limit emissions to 108% of 1990 levels.

1998 Sydney Futures Exchange Sets Up Forum On Emissions Trading. September 1 Dow Jones International News

See also Fullerton- 31 August 1998 http://www.abc.net.au/pm/stories/s48208.htm

The amount of carbon dioxide in the air was roughly 366ppm. As of 2023 it is 421ppm, but check here for daily measures. 

The context was that various people thought that there would be a rush towards emissions trading, once Australia had its own national scheme and had ratified the Kyoto Protocol (which it had already signed).. The foreign money would come pouring in from nations where cutting carbon was harder (e.g. Japan, which had gone seriously energy efficient after the 1973 oil shock). These nations would instead of making expensive local investments could instead buy some trees in New South Wales and say “job done.” Meanwhile the middlemen and the bankers would get seriously rich. That was the idea, that was the cunning plan.

What I think we can learn from this is that smart people with an eye to the main chance are always coming up with cunning plans. Pity that these didn’t help with the decarbonization effort. Oh well

What happened next

The Sydney Trading Futures thing shut down in 2000 just before the Minchin/Hill Cabinet showdown… 

It get off the ground basically emissions trading didn’t either in Australia and the emissions kept climbing and climbing at least globally (t’s all a bit dodgy depending on how you do your accounting)

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong? Please do comment on this post, unless you are a denialist, obvs.