Australia should use broad emissions scheme-report

CANBERRA, July 4 (Reuters) - Australia should adopt a broad-based emissions trading scheme that includes energy and transport but which also compensates industries whose offshore rivals do not adopt emissions curbs, the country's climate change adviser said on Friday.

In a draft report to the government, economist Ross Garnaut also urged Australia to go further than its current goal to cut greenhouse gas emissions by 60 percent by 2050.

The 600-page report's recommendations come in the face of growing discontent among voters and industries about the likely impacts of emission caps on the economy, such as higher fuel and electricity costs.

The government is due to publish its own policy options paper in about two weeks. (Reporting by Mark Bendeich)