Environment groups back carbon trading.


Environment groups have welcomed a plan by the states to develop a carbon trading scheme in Australia.
Under the plan, state and territory governments would issue power companies permits for a certain amount of carbon emissions.
The companies could sell their surplus permits to bigger polluters and gain credits through actions such as tree planting.
The plan is still being discussed and does not have Federal Government support.
But Environment Victoria's Tricia Phelan says that does not matter.
"There's examples overseas in the United States where states have banded together irrespective of the federal government position and have successful emission trading schemes set up," she said.
"We don't need the Federal Government to okay the emissions trading scheme here in Australia but it would certainly be a lot more helpful if they were on board."
The federal Minister for the Environment, Ian Campbell, says the proposal would fail to curb green house gas emissions.
"It it won't cut emissions, it will just put prices up for energy," he said.
"It is a new tax on energy and ... it has not ever anywhere else in the world proven to reduce emissions."
Cost implications
Industry groups are concerned about the flow-on effects a carbon trading scheme.
Tim Piper, from the Australian Industry Group, says it could push up the price of all types of energy, including petrol.
"If government forces businesses to take this route then it will be a cost to consumers, to business and potentially to jobs," he said.
"What we really need to be sure is society is behind it and society is also prepared to make the sacrifices necessary to introduce some of these measures."