Climate plan builds on safeguard

AUSTRALIA’S 250 biggest polluting businesses would have to cut or offset emissions but could make money by selling carbon credits if they overachieve, if Labor wins the next federal election.

Opposition Leader Bill Shorten (pictured) is promising exemptions from the new scheme for major industries such as steel and agriculture.

Labor’s climate policy extends the Coalition’s “safeguard mechanism” that limits pollution by big industries.

“There will be no carbon tax, carbon pricing mechanism, or government revenue,” Mr Shorten said.

The Government immediately attacked Labor’s policy even though it is based on the Coalition’s own system.

“Bill Shorten does not have a plan, he just has a tax,” Prime Minister Scott Morrison said yesterday.

Nationals Leader Michael McCormack claimed agriculture would “almost be shut down”.

“The diesel fuel rebate will have to go under Labor’s policies. You won’t be able to grow cotton or rice under Labor’s policies. You won’t be able to irrigate under Labor’s policies,” he said.

And Finance Minister Mathias Cormann took aim at the plan to allow businesses to trade on international carbon markets, saying: “It clearly is a carbon tax.”

Opposition climate change spokesman Mark Butler said that was rubbish.

“We allow business to trade in every other robust international market, why on earth would we not allow them to trade in international carbon markets – provided, of course that they’re robust and they’re credible?” he said.

Business across the board told Labor they wanted to expand the safeguard mechanism rather than start from scratch.