Fed: Some Labor states unsure about greenhouse scheme

AAP General News (Australia)
08-16-2006
Fed: Some Labor states unsure about greenhouse scheme

By Denis Peters and Peter Jean

CANBERRA, Aug 16 AAP - The Howard government believes it will damage the economy, and
two Labor premiers are no more than lukewarm towards a states' plan for a carbon trading
scheme.

NSW Premier Morris Iemma, South Australian Premier Mike Rann and Victorian Environment
Minister John Thwaites today released a discussion paper on the plan, predicting only
modest increases in electricity prices for a reduction in greenhouse gases.

Under the plan, greenhouse gas emissions from Australia's electricity industry would
be capped at between 1997 and 2000 levels by 2035.

Electricity generators would be required to hold permits to emit greenhouse gases but
would be able to purchase extra permits and offset emissions through forestry and capturing
or storing carbon.

Federal Environment Minister Ian Campbell today sought to divide Labor states, saying
the scheme was, in effect, a new tax imposed on Queenslanders and West Australians by
NSW and Victoria.

"This is so bad for Queensland, so bad for WA," he said.

"This is a scheme that was dreamed up in Sydney with strong support from the left in Victoria."

WA Premier Alan Carpenter said his state would not commit to any form of national greenhouse
gas emissions trading without assurances that there would be no adverse effects.

He said the discussion paper had raised concerns about the impact on the state's economy
and on consumers' electricity costs.

"I would also want assurances that any trading scheme would not adversely impact the
state's capacity to rely on energy sources such as coal," Mr Carpenter said.

Mr Carpenter also said the federal government's lack of engagement in the plan would
severely weaken its prospects of success.

Queensland Premier Peter Beattie was also guarded about the plan.

"I believe in carbon trading but I also believe that we need to examine technology
like clean coal technology," he told reporters.

"We want to play our role in not just reducing emissions but selling our technology to China.

"I refuse to support things that sound good but deliver bugger all."

Mr Iemma said possible electricity price increases under the scheme had been exaggerated.

He said if the scheme began in 2010, the price of electricity for households would
probably go up by 59 cents per week and about $1 by 2033.

"They are modest increases," Mr Iemma said.

"The cost to everyone of not taking action on climate change and reducing greenhouse
gases is immense."

But Prime Minister John Howard said the carbon trading scheme would damage the economy.

"Until we have a protocol throughout the world that includes all of the major emitters,
and that means the inclusion of countries such as China, the US and India ... the idea
of one country unilaterally embracing and emissions trading scheme will result in great
damage to that country," he told parliament.

"If we were to sign the Kyoto Protocol (which includes a carbon trading scheme), we
would accept burdens that would not apply to our competitors such as China and Indonesia."

Australian Greens senator Christine Milne predicted the government would eventually
be forced to join a national carbon trading scheme.

"Progressive industries are asking for it," she said.

"Certainly in the US it's clear, and all the renewable energies are saying, that they
cannot get the investment they need without a price signal on carbon."

Labor's environment spokesman Anthony Albanese attacked the government for failing
to back a national scheme.

"Climate change is the most important issue facing the global community and a national
emissions trading scheme is the least cost way of reducing emissions," he said.

The Australian Conservation Foundation said economic modelling for the scheme estimated
it would add between $1 and $3.20 to weekly household electricity bills.

AAP dep/sb/it/sd

KEYWORD: GREENHOUSE NIGHTLEAD

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