Australian PM delays emissions trading scheme (2)

The lack of a price on carbon would cost the economy and consumers an extra 2 billion Australian dollars (1.75 U.S. billion dollars) by 2020 due to investment in less energy efficient coal- fired power plants, the Climate Institute estimated.

To reassure big business, Gillard said carbon trade policy would remain the base for generous compensation for the biggest polluters. She ruled out lifting the threshold for compensation.

Australia, the world's largest coal exporter, accounts for about 1.5 percent of global emissions, but is one of the highest per capita emitters due to a reliance on burning coal to generate about 80 percent of domestic electricity.

Gillard said a re-elected Labor would demand new coal-fired power stations be equipped to capture and store carbon.

She also announced an extra 1 billion Australian dollars (0.9 billion U.S. dollars) over 10 years to help promote renewable energy projects. Australia has laws to ensure 20 percent of power comes from renewable energy by 2020.

"We have not abandoned our commitment to take action on climate change," Gillard said. "We will harness the power of natural resources - wind, sun, geothermal energy and biofuels."

Source: Xinhua
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