Government delays carbon trading scheme

Kevin Rudd says his government will delay the start of its carbon pollution reduction Scheme by one year to help Australian companies manage the impacts of the global recession.

In an announcement today, the Prime Minister said Australian businesses are currently dealing with the worst global recession since the great depression.

“In this environment the Government has decided to act to further support jobs and assist businesses during these difficult economic times,” he said.

These will include:-

• A one year fixed price phase will apply between 1 July 2011 and 30 June 2012. During the fixed price phase, each carbon pollution permit will cost $10. From 1 July 2012, businesses covered by the scheme will need to purchase permits at the prevailing market price.

• A new Global Recession Buffer will be provided as part of the assistance package for emissions-intensive trade-exposed industries.

• Eligible businesses will receive funding to undertake energy efficiency measures in 2009-10 as part of a $200 million tranche of the Climate Change Action Fund.

Private Briefing notes that the announcment also means that the still controversial, though now watered down scheme, won’t start until after the next Federal elections.