Australian Report Recommends Carbon Trading System (Update1)
By Fergus Maguire
June 1 (Bloomberg) -- An Australian government report has recommended the nation introduce a carbon emissions trading system to combat climate change, Prime Minister John Howard said.
``Australia cannot wait for a coordinated global response,'' Howard said in a statement today. ``The government's response to this report will be measured and balanced but will ensure Australia plays her part in tackling climate change.''
The report, which was written by a group including Xstrata Plc's Peter Coates, Treasury Secretary Ken Henry and BHP Billiton Ltd.'s Chris Lynch, is scheduled to be released later today.
Australia joins the U.S. in softening its opposition to setting goals to cut the pollution blamed for causing the Earth's atmosphere to warm. President George W. Bush yesterday proposed convening a new round of talks with the world's biggest economies to set emission targets.
Australia, like the U.S., has refused to ratify the Kyoto Protocol that sets a timetable for cutting greenhouse gas emissions, arguing it would harm economic growth.
The government will address climate change ``in a way that preserves our economic strengths and advantages,'' Howard said.
The task force report recommends emissions trading would produce the economic incentives for businesses to cut their pollution, he said.
It recommends the system not be introduced before 2012 and sets a carbon price of about A$20 ($17) a metric ton, the Australian newspaper reported today.
Howard has eased his opposition to setting emission targets in the face of increasing community concern over global warming.
His Liberal-National government, which is trailing the main opposition Labor Party in opinion polls, is providing grants to coal-fired power plants to help reduce emissions.
Labor leader Kevin Rudd supports Kyoto, a national trading system and a target of reducing Australia's emissions by 60 percent by 2050.
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