ETS shelved

Prime Minister Kevin Rudd confirmed yesterday that the implementation of the federal government's carbon pollution reduction scheme (CPRS) will be delayed until the end of 2012 when the current Kyoto commitment period ends. If there had been “sufficient international action” an ETS would have been legislated by 2013.

The Prime Minister said the government is still committed to meeting greenhouse gas emissions targets and a special prime ministerial task group will report on energy-efficiency policy options in June.

Australian Industry Group Chief Executive Heather Ridout said “industry remains committed to reducing emissions and improving energy efficiency".

"Furthermore, as industry puts in place longer-term investment strategies, it will be factoring in the future risks and costs associated with climate change policies.

"It would, therefore, be regrettable if the government did not move expeditiously to introduce the key elements of the proposed Climate Change Action Fund (CCAF) to help industry transition to a more carbon constrained economy. Energising the CCAF now will help businesses to build their capacity and reduce their exposure to the associated risks and costs.

"Ai Group has established a Leaders' Group which is currently looking anew at climate policy. The Group is examining approaches to climate policy with a particular focus on the importance of maintaining the international competitiveness of Australian industry; reducing emissions at least cost; and the impact of costly regulatory intrusions on private sector decision-making," Ridout said.