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Australia delays carbon market scheme, offers increased conditional reduction target

Rudd’s statement said the government listened to calls from
the business community for a later, more gradual start to the Carbon Pollution Reduction Scheme. STOCKXPERT

Australia’s Prime Minister Kevin Rudd yesterday [May 4] said the southern continent’s planned Carbon Pollution Reduction Scheme will not start until July 2011, or one year later than its original schedule. At the same time, a more ambitious 25% reduction by 2020 from 2000 levels was announced, subject to conditions. Australia had previously committed to a 15% greenhouse gas emissions reduction.

According to Rudd’s office, the delay is meant to give Australia the time to manage the impacts of the global recession, to address which the government announced further assistance for businesses that include the following:
- A one year fixed price period for carbon will be introduced, to cost AU$10 (some US $5.5) per ton of carbon in 2011-12, with the transition to full market trading from 1 July 2012.
- A new Global Recession Buffer will be provided as part of the assistance package for emissions-intensive trade-exposed industries.
- Industries eligible for 60% assistance will receive a 10% buffer, while industries eligible for 90% assistance will receive a 5% buffer.

At the same time, the Rudd government said Australia will commit to reduce greenhouse gas emissions by 25% compared with 2000 levels by 2020 if the rest of the world agrees to stabilize levels of carbon dioxide (CO2) equivalents in the atmosphere at 450 parts per million or less by 2050. Carbon dioxide and its equivalents’ parts per million is 385 today.

“We have listened to calls from the business community for a later, more gradual start to the Carbon Pollution Reduction Scheme and additional assistance to help manage the impacts of the global recession,” Rudd’s statement read.

The political party, Australian Greens, said the Rudd government “misjudged” the way Australians assessed the climate change issue.

"Our offices are once again seeing an outstanding degree of interest from the community asking what they can do to register their protest at the Government's refusal to act responsibly on climate change and help us get action,” said Green Sen. Christine Milne.

The party also criticized the support that they said will go to big polluters, which they said would amount to AU$2.2 billion (US$1.2 billion).


-  Eric Dorente

Source:

¹ http://www.pm.gov.au/your_pm/index.cfm