US Check on Emissions Trading

[Sherry]

The opposition has seized on US President Barack Obama's acknowledgment that Congress may not pass his proposed emissions trading scheme this year, as the government claimed there was a $15 billion hole in Tony Abbott's climate policy.

Mr. Obama told a New Hampshire town hall meeting the US Senate may want to "separate things out", passing an energy bill but rejected the emissions scheme, which is meant to be the central way for the US to meet a target of cutting emissions about 17 per cent below 2005 levels by 2020

He said an energy bill offering incentives to boost clean energy was a market-based approach that had proved successful.

In parliament, Opposition Leader Tony Abbott asked Prime Minister Kevin Rudd why, when President Obama was likely to drop his emissions trading scheme. Mr Rudd still wanted to "foist" a scheme on Australia.

Mr Rudd said the President confronted an institution "well known to this place as well, it is called the Senate" - "The Senate is not necessarily going to be accommodating of his aspirations to introduce an emissions trading scheme.

Opposition climate action spokesman Greg Hunt said Mr Obama's admission was proff that labor's emission scheme was dead in the water.

Nationals leader Warren Truss said: "President Obama has sided with the Coalition's direct-action plan for climate change and the environment."

Mr Obama is visiting Australia next month, with climate one of the topics for his talks with Mr. Rudd.

According to costings prepared by the Department of Climate Change, the opposition's emissions reduction fund would cost nearly $27 billion cumulatively to 2020, nearly $15 billion higher than the opposition figures.

As the opposition focused on increased costs under an emissions trading scheme. Mr Rudd guaranteed no pensioner would be worse off after its introduction.

But the government was caught out over household compensation. Senate leader Chris Evans said on Wednesday that 92 per cent of families would receive full compensation. But yesterday he said he "misspoke" and not all these families would get full compensation.

Mr Abbott rejected government claims that his scheme would see emissions rise by 13 per cent, rather than fall by 5 per cent over decade. He called on the government to release the modelling on which its claim was based, but the government said there was no modelling. Only analysis from Climate Change Department.

Heather Ridout, chief executive of the Australian Industry Group, which has been a strong supporter of emissions trading, said her executive would "refresh" the organisation's policy on the climate issue when it met later this month.

"One of the big questions that needs to be answered is; are we talking about the need for major transforming policy, major economic reform, or a lesser policy response?" Ms Ridout said.

Source: "The Age"