Companies that plant tress will be given carbon credits, but companies that chop then don't won't have to buy any. Coal fired power stations will have to buy permits, but the government will give them handouts to make sure they don't actually cut down production. Petrol will be included in the scheme, but the fuel excise will be reduced so the price doesn't actually increase, just in case it pushes people to drive less. There will be handouts all round.

We are likely to get more emissions reductions caused by the economic burden of pushing so much money round in circles than from the price on greenhouse emissions.

Govt unveils plan for emissions trading

http://news.smh.com.au/national/govt-unveils-plan-for-emissions-trading-20080716-3fln.html

The Rudd government has opted for a softly, softly approach to emissions trading which will likely lead to an increase in the cost of living of less than one per cent.

The government's options paper on emissions paper, released in Canberra on Wednesday, will see Australia ease into a relatively gentle scheme on July 1, 2010.

This approach is good news for industry and means there will be a limited impact on household budgets - but it's not likely to lead to deep cuts to greenhouse emissions in the short-term.

Petrol will be included in emissions trading, but the fuel excise will be cut so that there is no net increase in price.

As expected, electricity is included in the scheme, as is throwing out rubbish to landfill, while agriculture is out until at least 2015.

The options paper forecasts the cost of living will rise by 0.9 per cent due to emissions trading, meaning the average price for a basket of goods will rise by 0.9 per cent in the first year of the scheme.

Low-income earners will be given cash payments to make up for those price rises. Pensioners, carers and seniors will have their payments increased, and other low-income earners will get tax breaks and increased payments from the government.

The scheme also aims to placate middle-income earners, who will get financial assistance.

Emissions trading seeks to tackle climate change by putting a price on carbon emissions.

Big emitters have to buy "permits to pollute", which they can trade between them, so the market sets the price.

The government has taken on board industry's concerns about the scheme, responding with a relatively generous support package.

Big emitters who export much of their product - such as aluminium smelters - will be all but exempted from emissions trading at the start. They will be given free "permits to pollute" to cover 90 per cent of their emissions.

In all, 20 per cent of the scheme's permits will be given out for free, rising to 30 per cent once agriculture is included.

Coal-fired power plants will be compensated with direct payments from the government, including to develop clean coal technology.

And there's a win for the forestry industry - companies who plant trees can qualify for carbon credits, but companies who chop down forests don't

have to pay.

The decision to cut the petrol excise so that emissions trading does not push up prices - which was first proposed by the federal opposition - flies in the face of advice from the government's hand-picked climate change adviser Ross Garnaut.

He urged against an excise cut last week, saying the price of petrol should rise to send a signal to the market to use less.

The government says it will review the excise cut after three years. Fuel taxes on heavy vehicle road users will also be cut.

Mining industry welcomes trading scheme

http://news.smh.com.au/national/mining-industry-welcomes-trading-scheme-20080716-3g5l.html

Australia's main mining and construction union has welcomed the Rudd government's model for an emissions trading scheme, describing it as the first big nation-building project of the 21st century.

The government has released a Green Paper, detailing how it plans to tackle climate change via an emissions trading scheme.

As part of the government's approach, coal-fired power plants will be compensated for the cost of taking part in an emissions scheme.

CFMEU national president Tony Maher said the green paper detailed a balanced and workable approach by the Rudd government.

"Today we have certainty for workers and families that the government will be putting in place policies that protect jobs and the environment in a carbon-constrained future," he said in a statement.

"It is clear the government wants to take community with them on the first big nation-building project of this century."

"It's a balanced, workable approach to tackling the excesses of climate change with something for everyone."

Australia had the chance to implement a successful emissions trading scheme and demonstrate to the rest of the world how it can be done, Mr Maher said.

A leading climate change group says households and businesses could be exposed to global oil shocks if there is a fuel excise offset in an emissions trading scheme.

The Rudd government has unveiled details of its planned scheme - due to start operation on July 1, 2010 - which includes a cut in the fuel excise to match an increase in the price of petrol caused by a carbon tax.

It would review the offset mechanism in 2013, a move that sent a poor signal to businesses and households, the Climate Institute said.

In what year the inflection point in the world population curve occurred I do not know, but that it has occurred I do know.

That means "sustainable growth" is now well and truly on the agenda and the Fibs need leadership or they will stagnate and you all know what that means!

What happened to your post Oceans? Have you decided you're not a sceptic after all?

One good aspect of the scheme:

Rudd hedges his bets

http://www.theaustralian.news.com.au/story/0,,24032701-12250,00.html

Many details remain to be finalised. The signs are that Australia will have one of the most comprehensive emissions trading schemes in the world but with modest targets over its opening decade.

- and we should change the way Electricity is charged. Charging half price for excess is inappropriate. They should make the initial block at the discounted rate then triple that for excess.