HIGHLIGHTS-Australian PM defers emissions trade scheme

CANBERRA, July 23 (Reuters) - Australian Prime Minister Julia Gillard on Friday announced her August 21 election climate policy.

Here are highlights from Gillard's speech:

* Recommitted to an emissions trading scheme as best way to combat climate change, but did not change the Labor government's deferral of such a scheme until at least 2012.

"Emissions trading is essential to limiting and reducing pollution," said Gillard.

* Says will act on climate change when economy ready.

"Australians have real concerns about making changes that are this big and they need more information. They are concerned about the impact on jobs and the impact on the prices of goods and services that they rely on, especially electricity".

* Create Citizen's Assembly to report in a year on how best to tackle climate change.

"We need the consensus on a market-based solution to reducing carbon emissions. Adopting a market based mechanism to price carbon will transform the way we live and the way we work. Such a major change cannot be made and unmade on the oscillations of the political pendulum."

* Create a Climate Change Commission to explain the science of climate change and to report on progress in international action.

* A Labor government will demand all new coal-fired power stations are able to capture and store carbon.

Australia is one of the world's top per-capita emitters of planet-warming carbon pollution, relying on coal to generate more than 80 percent of its power.

* Will contribute up to A$1 billion ($893.7 million) over 10 years to connect the electricity grid to new sources of renewable energy.

* Recommitted to a Renewable Energy Target of 20 percent of electricity from renewable sources by 2020. Cited government's A$5.1 billion Clean Energy Initiative helping drive nearly A$19 billion of investment in clean renewable energy.

"We will harness the power of natural resources - wind, sun, geothermal energy and biofuels."

* 2009 was the second hottest year in Australia and ended Australia's hottest decade.

"With climate change, the number of droughts (in Australia) could increase by up to 40 percent in eastern Australia.

Without action to reduce our pollution, irrigated agricultural production in the Murray-Darling Basin (Australia's food bowl) is projected to fall by over 90 percent by 2100."

* "My starting point is that climate change is real and it is caused to a significant extent by human activity. The consequences of inaction are ultimately threatening for our planet. The price of inaction is price rises, job losses and innovations lost." <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

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