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Source: Reuters -
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Australia's government has boosted compensation to big carbon
emitters, coal companies and electricity generators under a revised
carbon-trade scheme aimed at securing vital parliamentary support
in a vote this week.
Prime Minister Kevin Rudd unveiled the revised scheme on Tuesday,
urging opposition politicians who have opposed his plan to cut
carbon emissions to now back the carbon-trade laws.
"The Carbon Pollution Reduction Scheme (CPRS) is a major economic
and environmental reform that will take Australia to a low-carbon
future," Rudd said in a statement.
The scheme is scheduled to start in July 2011 and cover 1,000 of
Australia's biggest polluters and the changes were made after weeks
of negotiations with the opposition.
If they pass the Senate, Rudd hopes to play a prominent role in
negotiating a new global climate treaty at a summit in Copenhagen
next month.
Senate approval would mean Australia backing what would be only
the second domestic emissions trading scheme outside of Europe to
pass into law.
The United States and New Zealand, which are also trying to pass
carbon trading laws, are eyeing developments in Australia
closely.
Rudd's revised scheme still remains far from assured as opposition
parties are deeply divided over it, with some conservatives vowing
to vote against the laws regardless of the deal and some moving to
delay the vote until February 2010.
If the laws are again rejected by a hostile Senate after a failed
August vote, Rudd would have a trigger for a snap election on
climate change.
"A vote on the bill must be held before parliament rises this week.
Passing the CPRS this week will give Australian businesses the
certainty they need to make investments," Rudd said.
"It will also mean Australia goes to Copenhagen with a means to
deliver its targets and provide a much-needed boost to negotiations
on a global deal."
Greens politicians disagreed.
"Today is a black day for Australia's green future, and we intend
to campaign on this all the way to the next election. It's
polluters payday in parliament house," said Senator Bob Brown,
leader of the Australian Greens, which have five seats in the
Senate.
UN climate talks in Copenhagen in December will seek to reach
agreement on broader, and tougher, strategy to reduce greenhouse
gas emissions globally to replace or expand the existing Kyoto
Protocol, whose first phase ends in 2012.
More compensation
Under Australia's cap-and-trade scheme polluters must buy a permit
for every tonne of carbon they produce.
The government has proposed a flat carbon price cap of A$10 ($12.6)
a tonne on start-up, rising to $32 per tonne in 2012-13.
The scheme would move to full auctioning and trading of permits
from 2012.
Under the revised scheme, additional compensation will result
initially in an additional government spending of $1.61 billion and
$8.86 billion over 2019-20, said Rudd in a statement.
The coal industry will receive $1.8 billion in compensation over
five years and the electricity sector will see compensation rise
from $4.1 billion to $9.2 billion.
Australia, the world's biggest coal exporter, produces about 1.5%
of global emissions and is one of the world's highest per-capita
emitters of greenhouse gases.
Australia has set a unilateral emissions reduction target of five
percent below 2000 levels by 2020, rising to 25% if a strong global
climate agreement is reached in the UN negotiations.
The government has already amended the scheme to exclude
agriculture, as demanded by conservatives.
"We have got a very good package and I think we have an exceptional
package. It's a deal that will protect jobs and the environment in
Australia," Ian Macfarlane, conservative negotiator on the
emissions-trading laws, told reporters.
Macfarlane said he was confident the deal would be accepted by
opposition parties, but added: "I will wait for the party room to
see who is going to decide to vote for this."
