Emissions trading plan 'scares business'

11 Dec 2008, 5:23 pm   -   Source: AAP
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The looming introduction of the federal government's emissions trading scheme is creating a "sense of fear" among Australian businesses, the opposition says.

The federal opposition and business groups are ratcheting up their campaign to delay action on climate change because of the economic crisis.

The government plans to start emissions trading in 2010, and on Monday will release the details of the scheme, and the 2020 target for greenhouse gas emissions.

As job losses mount because of the deteriorating world economy, opposition emissions trading spokesman Andrew Robb has again called for emissions trading to be delayed until 2012.

"If the government is not mugged by reality, certainly the rest of Australia is," Mr Robb said.

He said he had met with 51 companies recently and there was a "sense of fear" about the economic crisis. The last thing they needed was to grapple with emissions trading, Mr Robb said.

Opposition Leader Malcolm Turnbull said the design of the emissions trading scheme should be delayed until the outcome of UN climate negotiations late next year.

Industry heavyweight Heather Ridout also called for action on climate change to be softened.

The chief executive of the Australian Industry Group called on the government to consider delaying emissions trading, and said Australia should aim for a zero cut to emissions by 2020.

The government is expected to announce a target range somewhere between a five per cent cut in emissions, and a 25 per cent cut.

"Even in the best of times it was going to be difficult. In the worst of times it is going to be very difficult indeed," Ms Ridout said.

But Prime Minister Kevin Rudd said he had always expected criticism for taking action on climate change.

"We'll be attacked on the hard right by various businesses for going too far," he said.

"You're going to have people out there like the Liberal Party on the far right saying don't do anything at all."

Mr Rudd defended the need to act on global warming.

"Our job is to get the balance right, because if we do not act on climate change long-term, then let me tell you it will come and deliver a huge economic burden to Australia if we fail to act, quite apart from the environmental consequences."

Meanwhile, Independent senator Nick Xenophon - whose vote could be crucial in passing the emissions scheme through the Senate - has thrown the cat amongst the pigeons.

He wants a totally different scheme to the government's "cap and trade" plan, which effectively levies a carbon tax on all enterprises with emissions over a certain level.

"I think that this model is pretty cumbersome and clumsy," Senator Xenophon told Sky News.

He wants a scheme that hits companies with high energy-intensity but rewards companies with low energy-intensity.

Senator Xenophon did not object to starting a scheme in 2010, or cutting emissions by 25 per cent by 2020.

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