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http://www.ytwhw.com/Australia/2011/0323/-Australia-To-Introduce-Carbon-Legislation-By-Year-End.html

Australia will introduce legislation for a planned new carbon tax before the end of the year, setting the scene for a major test of Prime Minister Julia Gillard's minority Labor government.

If Gillard succeeds in winning lawmaker approval for a fixed price on carbon, effective from next year, it will be seen as a significant victory for her hamstrung administration. Failure to pass the bill would hand the momentum to the conservative Liberal-National opposition and could herald the downfall of the government.
"In this parliament, we will price carbon," Gillard told a rowdy session of lawmakers Wednesday after announcing the legislative timetable. "We cannot afford to get left behind by China, giants like the U.S. and Europe," Gillard said.
Gillard has faced a barrage of criticism since unveiling plans last month to put a price on carbon over a period of three to five years, beginning July 1, 2012, followed by a cap-and-trade emissions scheme.
Legislation will be introduced in the parliamentary session beginning in mid-August. It will need a majority in both houses of parliament and support from the envrionmentalist Greens and non-party lawmakers. Details of the package will be announced prior to the introduction of the legislation.
Critics accuse the government of breaking a key election promise and say the plan will put heavy industry in particular at a disadvantage as Australia runs the risk of moving out of step with the rest of the world, especially developing nations. Australia is one of the biggest polluters in the world on a per capita basis, mainly due to its heavy use of coal-fired power stations.
Proponents say criticism of the measures are exaggerated, and point to existing carbon trading schemes in 32 countries and 10 U.S. States.
Carbon pricing has proven to be a fraught subject in domestic politics. A decision by then Labor leader and prime minister Kevin Rudd in early 2010 to scrap plans for a carbon pricing scheme set in motion a train of events that culminated in his removal from office.
As a result, his successor Gillard promised not to introduce a carbon tax, but her subsequent failure to win the election outright means the Labor government depends on the Greens and other non-party lawmakers for support. To sweeten opponents of the scheme, Gillard has promised compensation for industry while leaving open the possibility of tax cuts for low- and middle-income earners.
Ross Garnaut, the government's chief advisor on climate change, last week said the starting price for carbon should be in a range of A$20 to A$30 per metric ton of carbon dioxide equivalent. Thereafter, the price of carbon should float without caps or floors from mid-2015 unless an independent regulator judges there are insufficient international trade opportunities to secure liquidity and stability.
The Liberal-National opposition, led by Tony Abbott, has seized on Gillard's about-turn and pledged to reverse the scheme if elected. Industry leaders are divided on the scheme. Qantas Airways Ltd. (QAN.AU) Chief Executive Alan Joyce has supported the measure, as have some in the services sector, while the biggest opposition comes from manufacturers.
Graham Kraehe, chairman of Bluescope Steel Ltd. (BSL.AU) and a central bank board member, heavily criticized the plans in a speech Tuesday, warning the government it was rushing head-first into a policy which he said would cripple factories.
Economists so far are reluctant to pass judgment on the proposals in the absence of detail on pricing and compensation. "It's a movable feast," said Commonwealth Bank of Australia Chief Economist Michael Blythe.
Public sentiment on climate change is also mixed. Having just emerged from a near decade of drought, vast areas of East Coast Australia have in recent months suffered a deluge of rainfall and flooding.
Australia's Department of Climate Change estimates temperatures will rise by one degree Celsius by 2030, with significant rises in periods of drought, extreme fire danger, storm surges and severe weather events.