Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

The Treasury modelling contained in the Strong growth, low pollution (SGLP) report assumes that OPEC1 as a group of countries responds to a mitigation target from 2021. It assumes that OPEC is able to buy or sell abatement from or to either firms or governments outside OPEC to achieve its target. The modelling does not assume OPEC will have an operational emission trading schemes (ETS) in 2021. Members of OPEC currently undertake Clean Development Mechanism projects which allow countries to source abatement within the OPEC region.

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1 Note that the “OPEC” region in the GTEM model used for the SGLP report does not align exactly with current membership of OPEC. The GTEM OPEC region includes: Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Palestinian Territories, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Venezuela, and Yemen.