PM announces carbon trading inquiry.


Prime Minister John Howard has responded to fears about climate change by setting up an inquiry into carbon emissions trading.
Mr Howard says the joint business-government task group will consider how emissions trading might work in Australia and globally "to make a lasting contribution to a response to the greenhouse gas challenge".
He says Australia's response to climate change must not unfairly damage the nation's economy and its industries.
"I think we all recognise that we have to examine in the time ahead how we might devise an emissions trading system, which properly cares for and accommodates the legitimate interests and therefore, maintains the competitive advantage that this country enjoys in the industries that are familiar to you," he said.
The Prime Minister has told the Business Council of Australia's annual dinner in Sydney it is vital to include the business community in the process.
"I think it is important to involve the business community in an analysis of this issue because decisions taken by the Government in this area will have lasting ramifications for Australia's business community," he said.
The council will play a role and its president, Michael Chaney, is already considering the question.
"Critically, we must agree on the best way we determine the market value of carbon emissions," he said.
He says developing countries must be involved in an international system to fight global warming.
"We've got to make sure this framework encourages and not excludes the participation of all countries," he said.
Mr Howard says he will discuss climate change with leaders from the resources sector later this week.
The president of BP Australia and member of the Business Roundtable on Climate Change, Gerry Hueston, has told Radio National Breakfast it is a welcome initiative.
"It's important now that the big emitters like the US and China and potentially India come on board because their involvement is the thing that's going to actually make the big difference," he said.
The executive director of the Australian Conservation Foundation, Don Henry, has also welcomed the announcement.
He says the Government should now set a target for reductions in carbon pollution.
"The crucial thing in any emissions trading scheme is first and foremost what cap, what reductions in greenhouse gas emissions you're going to require," he said.
"That's crucial for the environment, it also sets the market up so that business can reduce emissions in an efficient way."
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