Australian government seeks carbon emissions compromise

• 15 years ago (2009-11-24)
• David Flin

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The Australian government has faced opposition from within Parliament to its proposed carbon emissions trading laws. In an attempt to reach a deal, the government has agreed to at least double compensation to the coal and the electricity generation sectors.

The amendments to the proposal must win support from the opposition Liberal party if the law is to stand any chance of being passed.

Under the proposed changes, assistance to the coal industry would double to $1.4 billion, while electricity generators, which mainly burn brown coal, will be granted $7 billion worth of free permits over 10 years. Around $1 billion has been offered to assist manufacturing and mining industries handle the consequent higher prices of electricity.

’s Prime Minister, Kevin Rudd, has said that he wants the scheme passed into law before the climate change summit. However, the scheme has been attacked by ’s Green party for not going far enough, and it has been attacked by the National party, which argues that it would place a massive tax on the business community. The Liberal party is split on the issue, and is the key to whether the proposals can be passed into law. The Liberal leadership support the scheme, but it receives less support from the membership of the party.