Labor `undeterred' on carbon plan - Growing calls for scheme rethink

Age
Friday 20/2/2009 Page: 2

THE Federal Government has sought to lock in the design and timeline of its emissions trading scheme despite increasing calls from green and industry groups to dump or alter the policy. Climate Change Minister Penny Wong will today assure business economists in Sydney that an Australian trading scheme will begin in July 2010. "Our Government remains undeterred in our determination to implement the carbon pollution reduction scheme because we know it is the economically responsible course of action for Australia," Senator Wong will say at a lunch.

Treasurer Wayne Swan has shut down a committee inquiry into emissions trading because its stated aims had been "politicised and distorted" after its initiation sparked rumours the Government was walking away from emissions trading. Senator Wong and Mr Swan are trying to counteract mounting pressure from green and industry groups to alter, delay or dump the scheme.

Industry sources have told The Age that several major corporations have agitated for a carbon tax to replace an emissions trading scheme. It is believed representatives from BHP Billiton, Woodside Petroleum, Exxon-Mobil and Apache, among others, have expressed their desire for a carbon tax in recent discussions with the Government.

Exxon-Mobil spokeswoman Gemma Allman said the company preferred a carbon tax because it was "more efficient and effective". Opposition emissions trading spokesman Andrew Robb said a carbon tax was only one option being considered by the Coalition, and emissions trading remained official Opposition policy.

Mr Robb said the Coalition had always planned to review its support for emissions trading but would wait for economic analysis it has commissioned to return next week, before stating an official position. The Age believes Mr Robb, Opposition Leader Malcolm Turnbull and environment spokesman Greg Hunt broadly support an emissions trading scheme, but with alterations to include more offset schemes, energy efficiency programs and potentially allowing companies from the Pacific region to enter into carbon trading. That position is likely to be challenged by other members of the Coalition, especially from the National Party, before a Senate vote scheduled for June.

Greens Senator Christine Milne said: "Unless and until the old parties get real about serious emissions reductions, the tax or trade debate is the distraction, the target is the key. There is a long way to go in developing a workable scheme with serious targets that the Senate might be ready to pass." The Climate Institute Australia's policy director, Erwin Jackson, said the real message was being lost: "While all the politicians are running around like headless chooks playing politics, we are forgetting that we should be aiming to reduce emissions and develop a clean green economy."