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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Australian parliament rejects carbon trade plan Thu Aug 13, 2009 3:05am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Rob Taylor CANBERRA (Reuters) - Australia's parliament rejected a plan for the world's most ambitious emissions trade regime as expected on Thursday, bringing the nation closer to a snap election and prolonging financial uncertainty for major emitters. Conservative lawmakers holding the largest block of votes in the Senate joined with Greens and independents to defeat the Carbon Pollution Reduction Scheme set to start in July, 2011 and aimed at reducing emissions in the biggest per-capita emitter in the developed world. But the government renewed its pledge to push through the scheme before a December U.N. meeting in Copenhagen, where world nations will try to hammer out a broad global climate pact and where Canberra is eager to take a leading role. "This bill may be going down today, but this is not the end," Climate Change Minister Penny Wong told the Senate. "We will bring this bill back before the end of the year because if we don't this nation goes to Copenhagen with no means to deliver our targets," Wong said before the vote. Greens wanted tougher emissions targets, while conservative opponents are divided on the need for a scheme and want it delayed until after Copenhagen, fearing Australia will be disadvantaged if other nations fail to act on climate change. In a sign some major industrial emitters are fearful of months more uncertainty over the scheme's A$12 billion ($10 billion) estimated cost, the second-largest power retailer warned of a possible energy supply crisis without a speedy resolution. "The ongoing uncertainty surrounding the (carbon-reduction) legislation is delaying both the investment necessary to meet Australia's long-term baseload electricity needs and the investment in lower-carbon technology required to gradually reduce Australia's emissions," Origin Energy said. "We remain convinced the CPRS legislation provides the framework for a good, workable scheme," it said. ELECTION ON CLIMATE CHANGE? Surveys show Rudd well ahead in opinion polls and that most Australians favor action to combat climate warming. Elections are due in late 2010. Rudd has promised emissions cuts of 5-25 percent on 2000 levels by 2020, with the higher end dependent on a global agreement to replace the U.N.'s Kyoto Protocol. But if the Senate blocks or rejects the legislation a second time, after an interval of three months, it will hand Rudd a trigger for an early poll likely to be dominated by climate change. Some analysts said the legislation had become a victim of political point scoring that undermined efforts to fight climate change or reform the economy. "Of more concern to future negotiations, the range of reasons for opposition to the scheme (within the Senate) is so wide as to make meaningful responses to all objections almost impossible," said Julie Toth, a senior economist with ANZ bank. Rudd told parliament the defeat of his emissions trading plan had "put Australia's future on climate change in grave jeopardy". Scientists say Australia, the world's driest continent and prone to drought, faces a rapid rate of climate warming. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Costa Rica's Arias works from home with swine flu Video Rise of the Taliban At this crucial time in the U.S.-led war against the Taliban, GlobalPost reporters recap the current political and counterinsurgency efforts in Afghanistan. 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