Australia Proposes Carbon Trading Plan, Again

[alp227]

Source: International Herald Tribune

SYDNEY — Prime Minister Julia Gillard of Australia announced a plan on Sunday that would tax the carbon dioxide emissions of the country’s 500 worst polluters and create the second-biggest emissions trading program in the world, after the European Union’s.

The plan is projected to cut 159 million tons of carbon dioxide from the atmosphere by 2020, the government said. In 2010, Australia produced 577 million tons of carbon emissions, according to the Department of Climate Change.

For the 500 companies — which would include mining giants with operations in Australia like BHP Billiton, Rio Tinto and Xstrata — the government has set a price of 23 Australian dollars, or $24.70, for each ton of carbon dioxide emitted starting July 1 of next year, rising 2.5 percent annually before shifting in 2015 to a market-driven trading program.

A similar proposal by Ms. Gillard’s predecessor, Kevin Rudd, was largely blamed for having led to his political downfall. Ms. Gillard argued, however, that Australia — one of the world’s largest polluters, per capita — could no longer ignore its global responsibilities.

Read more: http://www.nytimes.com/2011/07/11/business/global/australia-proposes-carbon-trading-plan-again.html?partner=rss&emc=rss&pagewanted=all

[TexDevilDog]

1. Are they going to ban CO2 from

my soft drinks?

/sarc

[Matilda]

2. The original Carbon Pollution Reduction Scheme propsed by Kevin Rudd

didn't lead to his downfall; the article is a bit mistaken on this point. It was Rudd's decision to postpone the CPRS indefinitely, after having called it "the great moral challenge of our time" that led to his ultimate loss of popularity. And two of the people who strongly urged him to drop the scheme were Julia Gillard and deputy leader and Treasurer, Wayne Swan.

The plotters of the coup against Rudd made a fundamental mistake in thinking that his falling popularity meant that people didn't like him; in fact, they did and still do. They were just cross with him for dropping the CPRS, which was a major platform for Labor during the 2007 election. Now Gillard is copping the fallout from that mistake and is blamed for knifing the leader that people still really wanted.

Opposition Leader Tony Abbott is opposed to the scheme because he's simply opposed to anything Labor proposes, but he's helped by the fact that Gillard is so unpopular, and it's possible that if this were an election issue, Labor would lose bigtime. But it's hard to say how much of that is because of the carbon tax and how much is because of dislike of Julia Gillard.

[nyy1998]

3. This singlehandedly destroyed Rudd's excellent Prime Minister-ship and almost cost Labour control

of Parliament. And I knew a few of my Aussie friends aren't too happy but that's a small sample. Hopefully Gillard can handle the political s***storm heading her way

[pampango]

4. Good for Australia. It's nice to see that some countries are doing something about CO2

even if we aren't. I know, I know - don't get repubs started on the evils of carbon trading. :)