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May 5, 2009
The emissions trading scheme has been delayed for a year. The global recession is the reason for the delay. Fair enough. But wait there is more. Labor will soften the beginning of the scheme with a low, fixed carbon price and a "global recession buffer" of aid for affected industries. They are looking more like the Liberals everyday as the changes are along the lines of what business and the Liberals had been urging. The reason? The global recession.
In the revised package, which the Rudd Government says strengthens the carbon pollution reduction scheme, will:
- Raise free permits to polluting industry from 90 and 60 per cent to 95 and 70 per cent in the first five years of the scheme.
- Fix the price of carbon per tonne to $10 for the first year and offer unlimited permits for that period.
- Provide $200 million to business for building efficiency programs in the next financial year.
There was a move away from brownness and defending the interest of the coal industry, as well as those businesses that will have to pay millions for carbon permits but do not pollute enough to qualify for free permit.
The strengthening spin refers to the heavily qualified pledge of a cut of 25 per cent of emissions on 2000 levels in the unlikely event the December Copenhagen Climate conference endorses an ambitious international agreement. Otherwise it’s the same deal as before: 5% if there’s no agreement, 15% if there’s an international deal short of the 25% cut plus conditions.
What can you say to this? That a mere something is better than nothing? Some sections of big business say that it is a step in the right direction but that it needs even more tweaking. The Liberals, Nationals and Minerals Council say that a fundamental redesign of the ETS is needed; ie., it needs to be hollowed out completely. But they hasten to add, they are all for environmental sustainability it is just that......
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I am surprised that three environment groups--- the Australian Conservation Foundation, WWF and the Climate Institute---supported the Rudd Government's backflip saying it was important the amended package was passed by Parliament.
Will it? Rudd + Co have turned away from the Greens and the cross bench Senators. The Liberals are basically demanding extra changes.