Commonwealth stays clear of carbon scheme.


The federal Industry and Resources Minister, Ian Macfarlane, says the Commonwealth will not be part of the states' carbon trading scheme.
The premiers and chief ministers have by-passed the Commonwealth and are floating their design to kick off a national greenhouse gas emissions trading scheme by 2010.
New South Wales Premier, Morris Iemma has told ABC Radio's AM the scheme is called "cap and trade".
"It is capping the emissions and establishing a trading mechanism whereby certificates or credits can be traded in the market place with the overall objective to reduce greenhouse gas emissions from electricity generators," he said.
The Federal Government is opposed to such a scheme, arguing that it is a carbon tax.
Mr Macfarlane has told AM that the system would increase the cost of both electricity and petrol, and it is not the best way to lower greenhouse gas emissions.
"The way to reduce greenhouse gas, particularly from stationary generators like power stations, is to find ways to capture the carbon dioxide and store it underground," he said.
"We believe there should be a range of technologies, they should include renewable technologies, and we're continuing to fund renewable technologies through the Ready Scheme."
Other schemes
Mr Macfarlane says the Government is confident that Australia can reduce greenhouse gas emissions without costing jobs or leading to a massive increase in electricity and petrol.
"One of the models that [the states] are proposing is a reduction in greenhouse gases by 50 per cent," he said.
"That was actually costed by ABARE at an increase in electricity prices of almost six-fold and a doubling of petrol prices.
"Now that sort of impact on the economy would be devastating."
He says a carbon trading scheme has already failed in Europe, and will cost jobs in Australia.
In other developments:
Electricity prices may increase by $30 per year under a new proposal by the states and territories to set up a national greenhouse gas trading scheme. (Full Story)
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