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Australia's carbon-trade deadlock nears end
Source: Agencies |
November 25, 2009, Wednesday
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AUSTRALIAN Prime Minister Kevin Rudd edged closer to securing his carbon trade plan today after a hostile Senate rejected delaying a vote and the opposition hosed down an internal revolt over the scheme.
A motion to delay the vote, moved by opponents of the cap-and-trade scheme, was the first test of support for the scheme since the government struck a deal with the opposition yesterday to secure its passage through the upper house Senate.
Rudd wants the scheme passed by the end of the week in order to boost the political momentum for a global climate agreement at December's U.N. climate talks in Copenhagen, where Rudd is playing a key negotiating role.
"No country needs to send the message more than Australia," Treasurer Wayne Swan told parliament. "We are one of the hottest and driest continents. We are hit hardest, and we are hit fastest by dangerous climate change."
Australia is the developed world's biggest per-capita carbon emitter. The carbon trade scheme will cover 1,000 of Australia's biggest polluters and 75 percent of emissions, in the most comprehensive scheme outside of Europe.
Rudd needs an extra seven votes in the Senate to pass the carbon-trade legislation. If the legislation is again defeated it would give Rudd a trigger for a snap election on climate change.
Opposition Leader Malcolm Turnbull yesterday announced bipartisan support for the package of 11 carbon trade bills, but sparked a revolt within his party, which is deeply divided on climate policy.
Turnbull called a special meeting of his lawmakers today to vote on his leadership, heading off a leadership spill with 48 votes to 35 and ending the leadership hopes of conservative and climate sceptic Kevin Andrews.
Turnbull's victory should ensure the opposition supports the carbon trade plan in the Senate in a vote expected late Thursday, although several opposition senators have said they will defy Turnbull and vote against the scheme.
"These are big issues. But the debate has been resolved now and what we have got to do is reunite, come together and move forward and hold the government to account," Turnbull said.
Under the deal with the opposition, the government will boost compensation to big carbon emitters, coal companies and electricity generators.
The Australian coal industry expressed disappointment, despite receiving A$1.5 billion in compensation over five years, while the electricity sector will see compensation more than double from A$3.3 billion to A$7.3 billion.
Australia's Energy Supply Association, which represents electricity generators, said the changes did not go far enough and did not offer enough protection for coal-fired power stations, which produce 80 percent of Australian electricity.
But the key business lobby the Business Council of Australia, which represents chief executives of 100 of Australia's biggest companies, welcomed the political agreement.
"The introduction of the carbon pollution reduction scheme in Australia is of such fundamental importance and long-term consequences that it requires bipartisan support," the council said in a statement.
A motion to delay the vote, moved by opponents of the cap-and-trade scheme, was the first test of support for the scheme since the government struck a deal with the opposition yesterday to secure its passage through the upper house Senate.
Rudd wants the scheme passed by the end of the week in order to boost the political momentum for a global climate agreement at December's U.N. climate talks in Copenhagen, where Rudd is playing a key negotiating role.
"No country needs to send the message more than Australia," Treasurer Wayne Swan told parliament. "We are one of the hottest and driest continents. We are hit hardest, and we are hit fastest by dangerous climate change."
Australia is the developed world's biggest per-capita carbon emitter. The carbon trade scheme will cover 1,000 of Australia's biggest polluters and 75 percent of emissions, in the most comprehensive scheme outside of Europe.
Rudd needs an extra seven votes in the Senate to pass the carbon-trade legislation. If the legislation is again defeated it would give Rudd a trigger for a snap election on climate change.
Opposition Leader Malcolm Turnbull yesterday announced bipartisan support for the package of 11 carbon trade bills, but sparked a revolt within his party, which is deeply divided on climate policy.
Turnbull called a special meeting of his lawmakers today to vote on his leadership, heading off a leadership spill with 48 votes to 35 and ending the leadership hopes of conservative and climate sceptic Kevin Andrews.
Turnbull's victory should ensure the opposition supports the carbon trade plan in the Senate in a vote expected late Thursday, although several opposition senators have said they will defy Turnbull and vote against the scheme.
"These are big issues. But the debate has been resolved now and what we have got to do is reunite, come together and move forward and hold the government to account," Turnbull said.
Under the deal with the opposition, the government will boost compensation to big carbon emitters, coal companies and electricity generators.
The Australian coal industry expressed disappointment, despite receiving A$1.5 billion in compensation over five years, while the electricity sector will see compensation more than double from A$3.3 billion to A$7.3 billion.
Australia's Energy Supply Association, which represents electricity generators, said the changes did not go far enough and did not offer enough protection for coal-fired power stations, which produce 80 percent of Australian electricity.
But the key business lobby the Business Council of Australia, which represents chief executives of 100 of Australia's biggest companies, welcomed the political agreement.
"The introduction of the carbon pollution reduction scheme in Australia is of such fundamental importance and long-term consequences that it requires bipartisan support," the council said in a statement.
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