Regulating a National Emissions Trading System within Australia: Constitutional Limitations

The constitutional implications of regulating a national emissions trading system within Australia that is compatible with the Kyoto Protocol and that displays similar key features of European Union Emissions Trading Scheme (EU-ETS) are investigated. It is argued that the successful regulation of a national emissions trading system can be achieved through a number of Constitutional powers, namely trade and commerce, taxation and external affairs. But each power embodies its own limitations and issues that alter a potential trading system within Australia in comparison with the EU-ETS model.