Premier Jay Weatherill on Tuesday told the South Australia parliament that it would be near impossible to set up a state-based carbon market, AAP reported, countering claims from his environment minister last week that SA was exploring such a policy.

“Frankly there are some very substantial constitutional barriers which would prevent us from introducing such a scheme,” Weatherill told parliament, although he added he was strongly in favour of a federal emissions market.

SA Environment Minister Ian Hunter last week told local media that SA was exploring a state-based market, and that New South Wales, Queensland and Victoria had all expressed interest.

But Weatherill’s comments could mean the idea will be shelved, at least in South Australia.

However, it was unclear which constitutional barriers he was referring to.

New South Wales ran a baseline and crediting scheme from 2003 to 2012, and state premiers were negotiating a potential nationwide state-run carbon market that was only dropped when then-PM Kevin Rudd proposed his Carbon Pollution Reduction Scheme in 2008.

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