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Australia brings forward decision on carbon price
Source: Agencies |
November 29, 2010, Monday
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AUSTRALIA must legislate next year to put a price on carbon emissions, Prime Minister Julia Gillard said yesterday, pressing the accelerator on her minority Labor government's deadline for action to combat climate shift.
As world climate talks got underway in Mexico, Gillard said the government would bring forward by a year a decision on how to price carbon, but left unclear whether a previous 2013 date for actual implementation of any scheme would remain in place.
The government, she said, had to find a way to break a parliamentary deadlock over laws to price carbon emissions.
"I promise you, no responsible decision-maker will be able to say next year that they need more time or more information on climate change," Gillard told a business gathering, vowing to overcome three rejections by lawmakers of carbon trading laws.
"In 2011 there will be nowhere to hide," she said.
Gillard's Labor won a second term in August elections, but only with support from three independents and a Green lawmaker, leading to concern her minority government might be unstable and not survive a three-year term.
A postponement by Labor in April of a scheme to combat carbon pollution in the world's biggest per-capita emitter was a major reason why the party was punished by green-leaning voters, and also exacerbated industry uncertainty about climate policy.
Labor had previously planned to begin carbon trading with a A$10 (US$9.64) fixed permit price by 2011-12, moving to full trading from 2012-13 to achieve a reduction in Australia's emissions of at least 5 percent over 2000 levels by 2020.
Gillard, stung by criticism that her government had not been bold enough on promised economic reforms, said 2011 would be a critical year to "walk the reform road", although she left vague the question of when carbon pricing would begin.
"Climate change was first discussed in our parliament in the 1980s. The government will be moving from discussion to decision," she said.
Miners including BHP Billiton have warned the lack of a price is discouraging investment in renewable and clean-energy sources to replace ageing coal-fired power stations, while hampering low-carbon industry development.
The absence of a national scheme is also stoking fears among investors that state governments develop their own, widely diverging climate policies: a concern exacerbated at the weekend by elections in Victoria state.
The election delivered a surprise victory for opposition conservatives opposed to carbon pricing. The conservatives are also expected to win elections early next year in heavyweight New South Wales state, and possibly Queensland after that.
"The carbon tax that she ruled out before an election has now been ruled in since an election, and what that means is a massive increase in the cost of living for Australian households," national conservative opposition leader Tony Abbott told parliament after Gillard's speech.
Gillard has set up a cross-party committee to advise on how to price carbon, and lawmakers will spend the next year deciding on a carbon tax or market-based system, or a mix of both.
As world climate talks got underway in Mexico, Gillard said the government would bring forward by a year a decision on how to price carbon, but left unclear whether a previous 2013 date for actual implementation of any scheme would remain in place.
The government, she said, had to find a way to break a parliamentary deadlock over laws to price carbon emissions.
"I promise you, no responsible decision-maker will be able to say next year that they need more time or more information on climate change," Gillard told a business gathering, vowing to overcome three rejections by lawmakers of carbon trading laws.
"In 2011 there will be nowhere to hide," she said.
Gillard's Labor won a second term in August elections, but only with support from three independents and a Green lawmaker, leading to concern her minority government might be unstable and not survive a three-year term.
A postponement by Labor in April of a scheme to combat carbon pollution in the world's biggest per-capita emitter was a major reason why the party was punished by green-leaning voters, and also exacerbated industry uncertainty about climate policy.
Labor had previously planned to begin carbon trading with a A$10 (US$9.64) fixed permit price by 2011-12, moving to full trading from 2012-13 to achieve a reduction in Australia's emissions of at least 5 percent over 2000 levels by 2020.
Gillard, stung by criticism that her government had not been bold enough on promised economic reforms, said 2011 would be a critical year to "walk the reform road", although she left vague the question of when carbon pricing would begin.
"Climate change was first discussed in our parliament in the 1980s. The government will be moving from discussion to decision," she said.
Miners including BHP Billiton have warned the lack of a price is discouraging investment in renewable and clean-energy sources to replace ageing coal-fired power stations, while hampering low-carbon industry development.
The absence of a national scheme is also stoking fears among investors that state governments develop their own, widely diverging climate policies: a concern exacerbated at the weekend by elections in Victoria state.
The election delivered a surprise victory for opposition conservatives opposed to carbon pricing. The conservatives are also expected to win elections early next year in heavyweight New South Wales state, and possibly Queensland after that.
"The carbon tax that she ruled out before an election has now been ruled in since an election, and what that means is a massive increase in the cost of living for Australian households," national conservative opposition leader Tony Abbott told parliament after Gillard's speech.
Gillard has set up a cross-party committee to advise on how to price carbon, and lawmakers will spend the next year deciding on a carbon tax or market-based system, or a mix of both.
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