Australia is at risk of breaching a global agreement to cut greenhouse gases as power markets signal Prime Minister Tony Abbott will exploit the widest election victory in nine years to repeal the nation’s carbon system.
China said a rift with industrial nations over the Kyoto Protocol’s rules on greenhouse gas risks destroying the international response to global warming, raising the chance this year’s talks in South Africa will fail.
European Union governments agreed to seek full banking of unused United Nations emission rights for after 2012 and a limit on their sale in a bid to facilitate a global deal on extending the Kyoto Protocol.
Australia and New Zealand, which sponsor the most developed carbon markets outside Europe, say they won’t agree to remain part of the Kyoto treaty unless other countries bolster efforts to curb emissions.
The push to extend legal restrictions on carbon emissions is deadlocked, threatening the United Nations climate program based around the Kyoto Protocol, said the head of the U.S. delegation at talks in Germany.