The federal government now says it may never introduce emissions trading - or may push it back past 2013.
One day after Prime Minister Kevin Rudd reneged on one of his key promises and delayed the emissions trading scheme (ETS) by two years, more delays and caveats have come to light.
The government now says it would only start emissions trading - the main scheme to tackle climate change - when various other countries have taken action.
And with ETS laws to be drafted in 2013 at the earliest, the scheme would be unlikely to start before 2014 - that's two elections away.
Climate Change Minister Penny Wong has started using the word "if" in relation to emissions trading.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"We will only introduce it (an ETS) if there is sufficient progress internationally particularly from China, India and the USA," she told Adelaide radio 5AA.
"And we expect that that will occur at the conclusion of what is known as the Kyoto period which will end in 2012."
This is a change from the government's position that Australia should act on climate change because it was the right thing to do. India has very low per capita emissions and has called on developed countries like Australia to take the lead on climate change, while US climate plans have stalled.
Senator Wong also clarified that at the earliest, ETS laws would be introduced in 2013.
There is generally a delay between the introduction of laws and the commencement of such schemes, so it might not begin until 2014 or later.
Federal Opposition Leader Tony Abbott savaged Mr Rudd over his climate backflip. Mr Rudd had previously referred to it as the greatest moral challenge of our time, and vowed to start the ETS this year.
"He barnstormed the country for two years telling us that climate change was not just a big issue but it was the greatest moral challenge of our time ... now he has gutlessed out of that which he said was so essential," Mr Abbott told reporters in Brisbane.
"(People) are dismayed at the lack of character which he has shown on this issue."
Mr Rudd defended the ETS delay as a responsible decision, and talked up existing promises on renewable energy and solar power plants. Treasurer Wayne Swan appeared to deny speculation that the ETS has been delayed in order to free up money for the government to spend on health reform.
According to government figures, the ETS would have cost the budget $1.2 billion in the four years from 2009, and $2.5 billion out to 2020.
The ETS would have earned revenue by taxing polluters, but the government had promised to dole out more than that in compensation.
The government has promised to spend billions of extra dollars on health reform, and find savings in the budget to pay for it.
Mr Swan would not reveal how much money the government would save by delaying the ETS, also called the CPRS. He hinted the ETS money saved would not go to health.
"What will happen on budget night is you will see that we have funded our commitments in health that have been announced ... and I can tell you it won't relate to the CPRS," he told reporters in Canberra.
Mr Swan said the figure of $2.5 billion was exaggerated.
