FACTBOX: Timeline for Australia's carbon trading plans

(Reuters) - The following is a chronology of events leading up Monday's release of Australia's carbon emissions trading system, as well as a timeline for decisions remaining before the plan is finalized.

2007

Former conservative government of John Howard proposes carbon trading by 2012, and promises a 15 percent clean energy target by 2020, up from its old target of 2 percent. His government announces a phase-out of incandescent light bulbs. But he refuses to ratify the Kyoto Protocol.

Labor's Kevin Rudd promises to ratify Kyoto, introduce carbon trading by 2010, and set a 20 percent renewable energy target by 2020. Labor also promises to cut emissions by 60 percent of 2000 levels by 2050, but does not set an interim emissions target for 2020.

November 24 - Rudd leads the left-leaning Labor Party to victory at national elections, ending nearly 12 years of conservative rule.

December 3 - Rudd is sworn into office, and immediately signs documents to ratify the Kyoto Protocol. Penny Wong is appointed Minister for Climate Change.

2008

March - Government-industry consultations start on emissions trading.

July 4 - Government adviser Ross Garnaut, an economics professor, releases his draft report on carbon trading after a 15-month inquiry.

July 16 - Climate Change Minister Penny Wong releases green paper on policy options for carbon trading.

Sept 30 - Garnaut releases final report and says Australia's coal-powered economy can afford to cut greenhouse gas output by 5 to 10 percent by 2020 through carbon trading. He says if the country cut carbon emissions by 10 percent by 2020, it would cost only 0.1-0.2 percent of yearly GDP growth over the period.

Oct 30 - Treasury modeling on the economic impact of carbon trading backs Garnaut's view, saying carbon trading would cut annual gross national product growth by 0.1 percent in a world without action to tackle climate change.

Dec 15 - Release of policy paper outlining government's plans for emissions trading.

2009

Draft carbon emissions laws to be released in February, with the bills to be presented to parliament in May. The government wants the laws passed in June, but a prolonged Senate inquiry could delay the laws until late 2009. The laws are likely face challenges in the Senate and the government will need the support of the Greens and two independents, or the conservative opposition parties, all of which have competing demands.

2010