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Gillard to finalise climate policy

Climate change will be the next policy cab off the rank for Prime Minister Julia Gillard, after she tackled the mining tax and asylum seekers, ahead of an election.

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Source: AAP


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Opposition Leader Tony Abbott says Labor will play "me too" on his climate change plans, but there is one thing the major parties have already agreed on: no nuclear power for Australia.

With the emissions trading scheme (ETS) shelved, cabinet is expected on Tuesday afternoon to sign off on a fresh approach to address global warming, focusing on renewable energy and energy efficiency.

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Mr Abbott predicted Ms Gillard would emulate the opposition's climate plan: direct government spending to cut greenhouse gas emissions, with no carbon price.

"It's now part of the style of Labor to play `me too' before an election," he told reporters in a Canberra park.

Mr Abbott also firmly rejected calls for a domestic nuclear power industry, which some Liberals have supported.

"Nuclear power is not on the agenda at this time, and I have no plans to put it on the agenda," he said.

Labor does not want nuclear power either, so that campaign is on ice.

Ms Gillard told reporters in Adelaide that she believed in climate change, but she reiterated there would be no ETS before 2012/13.

She hosed down hopes of a quick climate fix, saying that dealing with the issue was "complicated" and she would work through it "step by step".

Labor frontbencher Robert McClelland, arriving in Canberra for cabinet, said the issue was urgent.

"Something has to happen and it has to happen quickly," he said.

Labor's climate policy will contain a boost for renewable energy like solar and geothermal power. There's $652 million set aside for it.

Labor is also expected to move on energy efficiency - cutting electricity use to save emissions. Some are pushing for a scheme that obliges electricity retailers to invest in such measures.

Another option is for the government to block new coal-fired power stations without low-emissions technology, or pay to close down all or part of one of the dirtier coal-fired power stations, such as Hazelwood in Victoria.

As Labor finalises its climate approach, business is sending the message it doesn't want a carbon price.

A survey of more than 1000 businesses released by the Australian Chamber of Commerce and Industry (ACCI) found that almost half did not want an ETS, compared with 27 per cent in favour.

Three-quarters of the total supported an energy-efficiency scheme rather than an ETS.

ACCI said the survey showed that business tax incentives to reduce emissions would be welcome.


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