The Federal Government has announced the delay of its Emissions Trading Scheme (ETS) until 2011.
The Government has also increased the range of its emissions reduction target from 5% to 25% of 2000 levels by 2020, depending on international action.
The price of carbon will be set at $10 per tonne for the first year of the scheme.
Prime Minister Kevin Rudd announced the delay on the steps of Parliament House this afternoon.
According to Rudd, the global financial crisis made the delay a necessity.
The Government was due to introduce the Carbon Pollution Reduction Scheme legislation into Parliament in June.
It is believed the Government still wants the legislation for the scheme to be passed this year but the scheme itself will not start until 2011, rather than 2010 as originally intended.
The change will be a concession to concerns of industry about starting a scheme during lean economic times.
Australian Industry (Ai) Group CEO Heather Ridout announced in February this year that the proposed 2010 start date for the Federal Government’s CPRS is both unnecessary and unrealistic, after a national executive meeting in Canberra.
“The 2010 timetable has now become unrealistic because of the impacts of the global financial crisis on business confidence, cash flows and the availability of credit,” Ridout said.
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