ob体育s role in carbon markets
ob体育 regulates registered companies, financial markets, and providers of financial services and credit services.
We licence and monitor businesses that provide financial services in financial products to ensure that they operate efficiently, honestly and fairly.
ob体育 is also responsible for the supervision of operators of financial markets and clearing and settlement facilities and of the market participants.
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More about ob体育's role as regulator
- Emission units as financial products
- Providing financial services in emissions units
- Operating financial markets in emissions units
Emissions units as financial products
Australian carbon credit units (ACCUs) and eligible international emissions units (EIEUs) are specified as financial products in the Corporations Act 2001 (Corporations Act) and the Australian Securities and Investments Commission Act 2001 (ob体育 Act).听
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Other emissions and environmental units 鈥� such as Renewable Energy Certificates (RECs), Energy Savings Certificates (ESCs), Victorian Energy Efficiency Certificates (VEECs) and European Union Allowances (EUAs) 鈥� are not specified as financial products in the Corporations Act or the ob体育 Act.
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We refer to emissions units which are also financial products, as 鈥榬egulated emissions units鈥�.
Financial products in carbon markets can also be products that are related to any type of emissions or environmental units 鈥� such as derivatives over emissions units or interests in a managed investment scheme involving carbon abatement activities or emissions units.
Providing financial services in emissions units
Unless you are exempt, you must have an Australian financial services (AFS) licence from ob体育 to carry on a financial services business in these regulated emissions units or emissions-related financial products, whether those services are in relation to the听Emissions Reduction Fund or听for another market or purpose.
Holding an AFS licence does not authorise you to provide any kind of financial service. An AFS licence is issued with specific authorisations for the licensee to:
- provide specified types of financial services
- for specified financial products or classes of financial products, and
- to either wholesale clients or retail clients or both wholesale and retail clients.
RG 236 details when you may require an AFS licence to trade in emissions
Financial services licensing for emissions markets
Operating financial markets in emissions units
If you wish to operate a financial market in Australia in emissions units, you must obtain an Australian market licence from ob体育 to do so, or otherwise be exempted by the Minister.
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Markets licensing for emissions units