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.
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 more than halved its projection for carbon prices in the year starting July 2015 to A$12.10 ($12) a metric ton as the European Union, its planned partner in a cap-and-trade system, struggles with low prices.
Australia is committed to a 5 percent cut in carbon emissions by 2020 with a market mechanism considered the most efficient option, Climate Change Minister Greg Combet told Australian Broadcasting Corp. radio today.
Australian Prime Minister Julia Gillard will meet with representatives of the local units of Toyota Motor Corp., General Motors Co. and Ford Motor Co. to discuss how the government can assist the car industry.