The CER trade was for 100,000 tonnes, deliverable in December 2011. LYP is an active participant in the Australian carbon trading markets having already traded in Australian Emissions Units and now transacting the first inter-Australian trade of CERs.

“Despite our significant concerns in regard to the viability of the proposed CPRS legislation, it is very important that LYP supports the development of a liquid secondary market for the trading of carbon to ensure LYP is able to manage its carbon risk effectively,” said Richard Wrightson, LYP’s Manager, Emissions Trading Implementation Group.

“This deal allows LYP to hedge a small proportion of its potential carbon exposure upon the introduction of carbon trading in Australia.”