Abbott unveils climate change policy

Australia would be locked into a modest cut in greenhouse gas emissions of five per
cent under the federal opposition's alternative climate plan.
But the government wants to leave open the door to a bigger reduction of up to 25
per cent if the rest of the world takes ambitious action on climate change.
The two schemes - and targets - are likely to offer a key point of difference at the
federal election, expected this year.
Opposition Leader Tony Abbott, who opposes the government's emissions trading scheme
(ETS), on Tuesday revealed a scheme that would cost taxpayers $3.2 billion in the
first four years, ramping up to a $1.1 billion annual cost, to pay farmers to store
carbon in the soil.
More trees would be planted and the rebate for solar panels would rise by $1000.
It would involve a kind of ETS. Big polluters that increase their emissions would be
fined, while companies that cut their emissions would be paid.
"Our policy will be simpler, cheaper and more effective than the government's
because it relies on incentives not penalties," Mr Abbott said as he released the
policy in Canberra.
Prime Minister Kevin Rudd slammed the proposal as "nothing more than a climate con
job".
The "phony" plan would do less and cost more than the ETS, Mr Rudd told parliament
as the government waited to table its ETS in the lower house on Tuesday.
More than half the emissions savings in the opposition's plan would come from "soil
carbon" - capturing carbon dioxide from the atmosphere, turning it into plant matter
or charcoal, and storing it in the soil.
The process is relatively new and the emissions saved cannot be counted against
international targets under UN rules.
In addition, 20 million trees would be planted along highways, streets and parks,
and overhead power lines would be sunk underground.
The government says its ETS can cut emissions by five to 25 per cent, with the final
target to depend on what other countries do.
The opposition says it supports that target range, but Mr Abbott's climate plan
would cut emissions by 5 per cent.
Mr Abbott cast doubt on whether a global deal could be struck which would see
Australia lift its target.
"I'm far from confident that we are likely to be in that position," he said.
While the Copenhagen climate conference failed, the UN hopes a deal can still be
made, and work has begun on the next round of talks.
Business groups welcomed the opposition's climate plan, which would impose lower
costs on them than the ETS.
Heather Ridout, chief executive of the Australian Industry Group, said the plan
"appears attractive for business" because it imposed nominal costs on industry.
She called for more details on questions like how emissions baselines would be set
for business and how the plan would fit in with international efforts.
Green groups panned the scheme for locking in a five per cent target and said it was
not clear if the scheme would work, or be able to achieve even the five per cent
reduction.
"It just doesn't add up to the reductions in emissions we need," said Australian
Conservation Foundation spokesman Tony Mohr.
The Australian Greens said the scheme was open to rorts and pork-barrelling, and
failed to make polluters pay.
Under the government's ETS, a price is levied on carbon pollution from big
polluters. The government collects more than $10 billion a year, then churns it out
as compensation to households and businesses.
While the government sets a cap for emissions under the ETS, the market sets the
price for emissions permits.