Beattie coal plan risks carbon trade


PLANS for a multi-billion-dollar carbon trading system for Australian industry are now in doubt because the Queensland Government has given priority to technological solutions to greenhouse emissions.
Queensland's Labor Government has joined the Howard Government in looking at technological solutions to global warming ahead of a European-style emissions trading market in Australia.
All the state premiers and John Howard have agreed to look at low greenhouse emissions technology development before the next intergovernmental meeting at the end of the year.
In a deliberately low-key description of the commitment at the Council of Australian Governments last week, the commonwealth and states agreed to "work in partnership to maximise opportunities for Australia to achieve low emissions outcomes through clean coal and other low-emission technologies".
On the push for a national emissions trading scheme, Queensland Premier Peter Beattie has declared that "it is crucial for us to get clean coal technology right first".
"Once we reach a satisfactory stage in producing clean coal technology we can move progressively into a carbon trading scheme," he said.
Mr Howard and Mr Beattie discussed the plans at The Lodge in Canberra last Thursday night and Mr Beattie raised it with the premiers on Friday.
Mr Beattie and Mr Howard are looking at a new national research centre into "clean coal" production, possibly in Brisbane, and using climate change funds for pilot projects to cut greenhouse emissions.
The new national centre of excellence could expand the existing research centre studying coal in Brisbane.
The federal Coalition is opposed to establishing a carbon market or emissions trading system, where companies which pollute can buy "credits" from companies or countries that have earned bonuses for reducing greenhouse emissions.
The federal Labor Party and the Labor states have a policy of Australia signing the Kyoto Protocol and using a trading scheme to cut emissions
At the Council of Australian Governments meeting last week, Mr Beattie made it clear to the other states that he wanted the technology-driven solutions to greenhouse emissions given priority over a new carbon trading system.
"Queensland is totally committed and Victoria has a project planned as well to support the development of clean coal technology," Mr Beattie said last week.
"In a time of climate change and other issues, we have to use technology to produce not just the growth but to clean up the environment."
The Prime Minister highlighted Queensland's reluctance to join a national emissions trading scheme on Monday after delivering his plans for Australia to become an "energy superpower".
"I think that would be unworkable and, in any event, it's my understanding that Queensland does not support that, for the most obvious of reasons, because such a system would do great damage to the Queensland economy," Mr Howard said.
Setting out the federal Government's energy agenda on Monday, Mr Howard said Europe's emissions trading system was flawed and signing the Kyoto Protocol was against Australia's national interest.
"The European Union scheme is beset with complexity and competing national interests. The first trading period saw an allocation of permits by governments designed more to protect industries than to reduce emissions," Mr Howard said.
"Federal Labor and the Labor states are proposing such a scheme for Australia - although I understand that it is even more complex," he said.