Australian govt: carbon deal will be difficult
By James Grubel
CANBERRA, Nov 10 (Reuters) - Forging a political deal on Australia's carbon trade laws will be difficult after a new round of opposition infighting, the government said on Tuesday, casting fresh doubts on whether parliament will endorse the plan.
The government is in talks with the opposition over changes to the carbon trade bills aimed at ending a political deadlock in the upper house Senate, with the government keen to pass the laws before December's global climate talks in Copenhagen.
But Climate Change Minister Penny Wong on Tuesday questioned whether the opposition could honour any agreement on the bills after a series of senior opposition lawmakers said a majority in the party does not believe in human-induced global warming.
"I think it will be difficult," Wong told Australian radio. "I think the question most Australians would have is, is the coalition (opposition) able to negotiate in good faith if these are the views of many of its Senators?"
Opposition leader Malcolm Turnbull wants a deal on the carbon laws to head off the threat of an early election on climate, but divisions with his party resurfaced late Monday when several opposition lawmakers said they opposed his policy.
Nick Minchin, the opposition's leader in the Senate, said the majority of the party did not believe in human-induced climate change, while several opposition backbenchers said they would defy Turnbull and refuse to vote for any carbon trade scheme.
Under the proposed scheme, carbon trading would start in July 2011, putting a price on greenhouse gas and giving business a financial incentive to curb emissions. Companies will need a permit for every tonne of carbon they emit.
The debate is being closely watched overseas, particularly in the United States where lawmakers are debating their own proposals, ahead of the Copenhagen summit.
The Australian scheme will cover 75 percent of Australian emissions from 1,000 of the biggest companies.
(For more on the carbon trade debate in Australia and New Zealand click on [ID:nCARBONAU]. For a factbox on the scheme, click on [ID:nSYD493757].)
The carbon-trade laws were defeated a first time in August, and will return for a Senate vote in the week of Nov. 23. A second defeat would hand Prime Minister Kevin Rudd a legal trigger to allow him to call an election on climate change.
Turnbull, well behind in the polls, wants the government to change the scheme to permanently exclude agriculture, and to give more free permits to emissions-intensive trade exposed industries, such as cement and aluminium producers.
The opposition also wants more protection for coal companies, and extra protection for major electricity generators, who rely on burning coal to produce 80 percent of Australian electricity.
Wong said any changes to the scheme would need to be economically responsible and not add further costs to the budget. Updated budget figures on Nov. 2 found the scheme would run at a $1.1 billion deficit in its first two years. (Editing by Jerry Norton)
CANBERRA, Nov 10 (Reuters) - Forging a political deal on Australia's carbon trade laws will be difficult after a new round of opposition infighting, the government said on Tuesday, casting fresh doubts on whether parliament will endorse the plan.
The government is in talks with the opposition over changes to the carbon trade bills aimed at ending a political deadlock in the upper house Senate, with the government keen to pass the laws before December's global climate talks in Copenhagen.
But Climate Change Minister Penny Wong on Tuesday questioned whether the opposition could honour any agreement on the bills after a series of senior opposition lawmakers said a majority in the party does not believe in human-induced global warming.
"I think it will be difficult," Wong told Australian radio. "I think the question most Australians would have is, is the coalition (opposition) able to negotiate in good faith if these are the views of many of its Senators?"
Opposition leader Malcolm Turnbull wants a deal on the carbon laws to head off the threat of an early election on climate, but divisions with his party resurfaced late Monday when several opposition lawmakers said they opposed his policy.
Nick Minchin, the opposition's leader in the Senate, said the majority of the party did not believe in human-induced climate change, while several opposition backbenchers said they would defy Turnbull and refuse to vote for any carbon trade scheme.
Under the proposed scheme, carbon trading would start in July 2011, putting a price on greenhouse gas and giving business a financial incentive to curb emissions. Companies will need a permit for every tonne of carbon they emit.
The debate is being closely watched overseas, particularly in the United States where lawmakers are debating their own proposals, ahead of the Copenhagen summit.
The Australian scheme will cover 75 percent of Australian emissions from 1,000 of the biggest companies.
(For more on the carbon trade debate in Australia and New Zealand click on [ID:nCARBONAU]. For a factbox on the scheme, click on [ID:nSYD493757].)
The carbon-trade laws were defeated a first time in August, and will return for a Senate vote in the week of Nov. 23. A second defeat would hand Prime Minister Kevin Rudd a legal trigger to allow him to call an election on climate change.
Turnbull, well behind in the polls, wants the government to change the scheme to permanently exclude agriculture, and to give more free permits to emissions-intensive trade exposed industries, such as cement and aluminium producers.
The opposition also wants more protection for coal companies, and extra protection for major electricity generators, who rely on burning coal to produce 80 percent of Australian electricity.
Wong said any changes to the scheme would need to be economically responsible and not add further costs to the budget. Updated budget figures on Nov. 2 found the scheme would run at a $1.1 billion deficit in its first two years. (Editing by Jerry Norton)
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