States press ahead with carbon trading plan.


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.
The states and territories will today release a discussion paper that sets up a national framework to cut emissions by 60 per cent by the middle of the century.
Electricity prices are expected to slightly increase as a result of the scheme.
The proposed scheme targets the big electricity generators, which account for 35 per cent of Australia's emissions.
It would cap pollution levels but issue permits that allow emissions generators to pump a certain amount into the atmosphere.
Companies are issued with permits but if they go over their allocated limit, they must then buy another credit or face a financial penalty.
Companies can also trade their permits.
Prime Minister John Howard does not support a carbon trading scheme.
But the states and territories say a scheme like this will give big companies a financial incentive to reduce emissions and address global warming.
The Victorian Energy Minister, Theo Theophanous, has urged the Commonwealth to be part of the plan.
"It's a huge reduction in emissions and it can't be achieved just by technology change," he said.
"The only thing that can reduce emissions to that level is an emissions trading scheme and that's why we should do it."
Submissions on the proposal will be taken until December.