Australia to Delay Emissions Trading Scheme to Begin 2011 -- Ups 2020 Goal to 25% Cut of 2000 Level. (May 4, 2009)

Prime Minister Kevin Rudd has today announced that the start of Australia's emissions trading scheme is being delayed until 2011. The Government had previously planned to introduce the scheme in 2010. However, the Government also announced it would increase the upper limit of its carbon reduction target to 25% of 2000 levels by 2020, depending on global agreements on emissions cuts being reached in Copenhagen later this year, but it will also cut the price of carbon from $40 to $10 per tonne for the first year of the scheme.

The ABC reports:

"The worst global recession since the Great Depression means we must adapt our climate change measures, but not abandon them," [Prime Minister Rudd] said.

"Our objective of course is to provide business certainty for the future."

Mr Rudd has also announced that households will be able to contribute to cutting Australia's emissions, by making donations to a fund that would then buy and cancel carbon permits.

Emissions intensive trade exposed industries are also set to receive more assistance, including funding for energy efficiency measures.

The Opposition had been calling for the delay of the scheme for at least another year, saying it would hurt industry and cost jobs.

Mr Rudd has urged the Opposition to "get off the fence" and pass the laws.

"These goals are shared by the Liberal Party in terms of action on climate change, goals shared in relation to a slower start, goals also shared about the need for more ambitious targets overall," he said.

The Greens have slammed the scheme, criticising the targets for being too low.

But it remains to be seen whether the changes will be enough to get the scheme through the Senate, with other crossbench senators also having expressed reservations.

Ian Lowe Emeritus professor of science, technology and society at Griffith University, Queensland and President of the Australian Conservation Foundation gave this considered assessment following the announcement:

"On balance this is a welcome change. The 25% target is a significant step forward. It puts Australia in a leadership position along with the EU in relation to developed countries targets which will be crucial for a sound Copenhagen outcome. I think a credible target to help prosecute a sound Copenhagen outcome is absolutely crucial, far more important than the 'soft start' to the scheme. While much stronger action by Australia and the world is needed, on balance the legislation now does more good than harm and should be passed with this stronger target. We still need improvements to the legislation and additional strong action for reducing energy efficiency and boosting renewables including solar. But I think we should see this as a useful step along the crucial path to achieve needed deep cuts in Australian and global emissions.