Carbon scheme delayed by year - Reduction target of 25pc

Canberra Times
Tuesday 5/5/2009 Page: 1

The Rudd Government will delay the start of its greenhouse emissions trading scheme for a year to help Australian industries adapt to the global economic crisis. Announcing key changes in Canberra yesterday, Prime Minister Kevin Rudd said the threat of global recession meant the Government had to "adapt our climate change measures, but not abandon them".

The Government still wants legislation to establish the emissions trading scheme to be passed by the Senate this year, despite delaying its start date to July 1, 2011. Industry and environment groups have generally welcomed the changes, describing them as practical and inevitable, but Opposition Leader Malcolm Turnbull has dismissed the revamp as "panicked tinkering".

The announcement comes as Labor has taken a hit in the polls. Today's Newspoll has Labor's primary support dropping five points to 42% , compared with a one-point rise for the Coalition to 38% and a two-point rise for the Greens to 11% . Mr Turnbull was steady at 19% , while Mr Rudd dropped three points to 64% .

Greens deputy leader Christine Milne said the Government had "browned down" its emissions trading scheme, adding $2.2 billion to an already-generous assistance package for big polluters. The scheme's overhaul includes a tougher, but conditional, emissions reduction target of 25% by 2020, a low fixed price of $10 a tonne for carbon in the scheme's first year in 2011, and a 5% increase in free permits for high polluting export industries such as steel, cement and aluminium.

Mr Rudd said the changes showed the Government had consulted widely and been willing to listen to, and accommodate, criticisms. "This is big stuff for the nation. It's one of those things that we mast get right for the long haul ... We think we have got the balance right. "This is hard policy, difficult policy. "But one thing I know for certain is that every business organisation we have spoken to wants a certain investment environment for the future."

Mr Rudd said the Government had been particularly "listening to households and the contributions which they wish to make voluntarily" to the scheme. As a result, the Government will establish an Australian Carbon Trust to allow households to snake tax-deductible investments on cutting greenhouse emissions and boosting energy efficiency. The $76 million carbon trust will incorporate a $50 million energy efficiency trust and a $26 million energy efficiency savings pledge fund.

The Prime Minister said individuals and households would be able to calculate their home energy use, and pledge contributions to the energy efficiency savings fund to offset their emissions. These contributions would be tax deductible, and be used by the pledge fund "to buy and cancel carbon pollution permits equivalent to that level of energy use".

A new government website will provide a one-stop shop for people to calculate home energy use, and buy and retire carbon pollution permits under the Government's carbon trading scheme. Mr Rudd said the pledge fund would pool pledges, so "even small amounts can combine to make a big difference". A new "global recession buffer" will be provided as part of an assistance package for high pollution industries, with a 5 and 10% increase in free permits, depending on eligibility.

The Mine Minister said the Government remained committed to reducing carbon pollution by 5% against 2000 levels by 2020. "We now commit to reduce carbon pollution by 25% by 2000 levels by 2020 if the world agrees to an ambitious global deal to stabilise levels of carbon dioxide equivalent in the atmosphere by at least 450 parts per million by 2050.

This of course ... is an outcome consistent with Australia having the prospect of saving the Barrier Reef." Australian Industry Group chief executive Heather Ridout said the changes would give "absolutely vital, critical breathing space" to businesses. The ACTU said the changes would protect jobs in exposed, high-emissions industries.

But the revamped scheme still faces tough opposition in the Senate, with Independent South Australian senator Nick Xenophon dismissing the changes as window-dressing. "If you give a lame duck a hair-cut, it is still a lame duck," he said. Family First senator Steve Fielding said he would oppose it.