Australia to set up carbon trading scheme by 2010
The Australian government announced plans on Wednesday for a carbon emissions trading scheme by 2010 that it described as the biggest economic reform for a generation.
By Agencies |
SYDNEY: The Australian government announced plans on Wednesday for a carbon emissions trading scheme by 2010 that it described as the biggest economic reform for a generation.
Climate Minister Penny Wong said the government's blueprint -- aimed at curbing the greenhouse gas emissions blamed for global warming -- addressed the issue of climate change in an economically responsible manner.
Wong said Australia, one of the highest per capita carbon polluters in the world, must face the daunting reality that it could no longer pour carbon into the atmosphere as if there was no cost.
"As one of the hottest and driest continents on earth, Australia's economy and environment will be one of the hardest and fastest hit by climate change if we don't act now," she said.
"Climate change threatens our food production, agriculture, and water supplies, as well as icons like the Great Barrier Reef, the Kakadu wetlands and the multi-billion-dollar tourism industries they support."
Under the so-called "cap-and-trade" scheme, the government sets an overall limit on the amount of carbon the economy can produce and then provides permits to industry up to the nominated amount.
Companies can then trade their permits, meaning carbon-intensive industries will have to pay extra if they want to exceed their allocation, in a scheme the government believes will provide a market-based incentive to reduce pollution.
The scheme is expected to push up petrol prices, prompting Prime Minister Kevin Rudd's centre-left government to announce it will reduce petrol taxes to offset the impact on motorists already hit by high oil prices.
It will also provide compensation to low-income families facing higher electricity bills, as well as industry sectors such as electricity generators and aluminium producers.
The drought-hit agriculture sector will be exempt from the scheme until 2015.
Climate Minister Penny Wong said the government's blueprint -- aimed at curbing the greenhouse gas emissions blamed for global warming -- addressed the issue of climate change in an economically responsible manner.
Wong said Australia, one of the highest per capita carbon polluters in the world, must face the daunting reality that it could no longer pour carbon into the atmosphere as if there was no cost.
"As one of the hottest and driest continents on earth, Australia's economy and environment will be one of the hardest and fastest hit by climate change if we don't act now," she said.
"Climate change threatens our food production, agriculture, and water supplies, as well as icons like the Great Barrier Reef, the Kakadu wetlands and the multi-billion-dollar tourism industries they support."
Under the so-called "cap-and-trade" scheme, the government sets an overall limit on the amount of carbon the economy can produce and then provides permits to industry up to the nominated amount.
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Companies can then trade their permits, meaning carbon-intensive industries will have to pay extra if they want to exceed their allocation, in a scheme the government believes will provide a market-based incentive to reduce pollution.
The scheme is expected to push up petrol prices, prompting Prime Minister Kevin Rudd's centre-left government to announce it will reduce petrol taxes to offset the impact on motorists already hit by high oil prices.
It will also provide compensation to low-income families facing higher electricity bills, as well as industry sectors such as electricity generators and aluminium producers.
The drought-hit agriculture sector will be exempt from the scheme until 2015.
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