The Federal Government has delayed the introduction of its controversial emissions trading scheme (ETS), pushing back the start date from 2010 to 2011.
Prime Minister Kevin Rudd announced the changes to the scheme at a press conference this afternoon. This follows concerns expressed by business groups, and big polluters, that introducing the scheme in the midst of a downturn would hurt the economy.
The Government will now introduce the scheme on 1 July 2011, and a fixed-price will apply for businesses for a one-year period ending 1 July 2012.
Businesses can purchase permits for $10 per tonne of carbon in 2011-12, down from the Government’s initial pricing of over $20 per tonne, with full-market trading to commence on 1 July 2012.
The Government will also introduce a new target of cutting emissions to 25% of 2000 levels by 2020, if a worldwide agreement is reached to reduce carbon pollution to just 450 parts per million at a climate change conference in Copenhagen later this year.
The Government had originally committed to cutting emissions by 5% to 15% of 2000 levels by 2020, and was set to introduce legislation to support its Carbon Pollution Reduction Scheme in June.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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