Cap-and-Trade Program Rejected by Australian Senate


Earlier today, the Australian Senate by a vote of 42 to 30 rejected the government’s climate change legislation. For the Bloomberg article by Gemma Daley, click here. The legislation included
“included plans for a carbon trading system similar to one used in Europe. Australia, the world’s biggest coal exporter, was proposing to reduce greenhouse gases by between 5 percent and 15 percent of 2000 levels in the next decade.”
Prime Minister Kevin Rudd can now amend the bill or call for an early election. The Prime Minister wants any legislation in place before the meetings in December in Copenhagen to replace the Kyoto Protocol.

The defeat comes a week after the Australian National University released a report showing the impact of climate change on Australia. The report highlighted
“Lower rainfall, higher sea and land temperatures, severe storms, increased acidity in the ocean or rising sea levels could all threaten World Heritage sites such as the Sydney Opera House and the Great Barrier Reef[.]”
To view the report, click here.

After negotiations with industry, Senators, and conservationists, the government can resubmit the bill. But the Australian Parliament only has three two week sessions left before adjourning till 2010.

For an analysis of where Australia goes after this defeat, click here to view an article by Reuters.

Posted: 08/13/09