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.
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.
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.
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, sworn in yesterday for his second stint as Australia’s prime minister, may seek to amend his predecessor’s flagship clean-energy policy that’s left the nation with the world’s highest carbon price, analysts say.