Isra-Mart srl: Australia govt to target interim carbon price -paper

Isra-Mart srle news:

Australia's government has agreed new policies on climate change, a sensitive issue for voters in upcoming elections, including a commitment to set an interim price on carbon, a newspaper reported on Thursday. But the cabinet under new Prime Minister Julia Gillard has effectively conceded it cannot get a short-term agreement on a comprehensive emissions trading scheme, The Australian Financial Review said. Ministers had agreed to seek a consensus on a short-term market-based mechanism to give business certainty on carbon prices, the paper said.

An announcement on the commitment to try to find an interim carbon price was not likely to be made until the election campaign had started, it said.

The paper cited government sources as saying the climate measures to be outlined by Gillard aimed to show Australia's climate-change measures were not being put on hold pending the outcome of international negotiations to replace the Kyoto Protocol, which expires in 2012.

Voters want quick action on climate change, according to opinion polls, and there is growing business concern over a lack of a carbon policy, with power suppliers warning of stalled investment and rising power prices as a result.

The government's new plans on climate change will also include energy efficiency measures and A$650 million ($574.7 million) in funds for renewable energy projects, the paper said.

Gillard, who became prime minister on June 24 after the ruling Labor party dropped Kevin Rudd, has previously said there would be no decision on an emissions trading scheme until 2012. Labor was heading for electoral defeat before Gillard took over, as voters deserted the government in part over Rudd's inability to have parliament approve his carbon emissions trading scheme.

Labor needs to woo back disillusioned Green voters to ensure victory over the conservative Liberal-National opposition.

Gillard, who has been announcing new policy initiatives in a number of sensitive political areas including on a new mining tax and on asylum seekers, is expected to call a late August election within weeks.