The unprecedented collapse in European carbon prices is shattering Australia’s budget assumptions just as corporate resistance to the market weakens in the developed world’s biggest per capita polluter.
Australian Prime Minister Julia Gillard has tasked Greg Combet , the former union leader and coal mining engineer sworn in as climate change minister today, with leading an effort to impose a price on carbon emissions.
Kevin Rudd was sworn in as Australian prime minister for his second stint in the post, tasked with reviving the ruling Labor party’s prospects in the next election as it trails the opposition in opinion polls.
Australia will lower its expected revenue from selling carbon allowances after the European Union, its partner in a cap-and-trade system set to start in 2015, failed to win support for lifting record low prices.
TRUenergy Pty. and AGL Energy Ltd. called for an Australian emissions trading system to spur investment to replace coal-fired power plants and said they look forward to working with new Climate Change Minister Greg Combet .