Australia generators may get more carbon aid -paper - Yahoo! Asia News
federal auctions Add commentsAustralia generators may get more carbon aid -paper - Yahoo! Asia News
CANBERRA, Oct 23 - Some Australian power generators could get extra compensation on top of $2.8 billion already offered to help them adapt to the country's planned carbon-trading scheme, a local newspaper said on Friday.
The national government has agreed to review the level of compensation for brown coal-fired stations in Victoria state, The Age said, quoting confidential papers from the state government.
Victoria has been lobbying Canberra for more aid for the stations, among the industry's major carbon polluters, amid concerns that some could be forced to close.
Compensation has become a key battle ground in a political row over legislation underpinning the emissions scheme, which faces a second and possibly decisive vote in parliament next month.
The conservative opposition has called for more help for the coal industry and power generators in proposing amendments to the legislation. But Climate Change Minister Penny Wong has warned that compensation is not a “bottomless pit”.
The legislation has already failed to pass the upper house once before and a second vote is set for late November. If it fails again, Prime Minister Kevin Rudd would be able to call a snap election on the issue.
The Age quoted an unnamed power-industry consultant as saying Victoria Premier John Brumby, who belongs to Rudd's ruling Labor party, was worried about station closures and power disruptions.
A report last year said up to three brown-coal plants could shut by 2020 under Canberra's scheme, which would force them to pay for their carbon emissions. One of them was Hazelwood station, owned by British-based International Power plc
International Power, Australia's largest private generator, would prefer a taxpayer-funded closure of Hazelwood rather than face the costs of carbon trading, local media have said.
Australia's emissions scheme, due to start in July 2011, will cover 75 percent of emissions from 1,000 of the biggest companies and be the second-largest domestic trading platform after Europe.
Australia is the world's biggest coal exporter and accounts for 1.5 percent of global emissions, but is one of the biggest per capita emitters due to a reliance on coal for 80 percent of electricity generation.
(For a factbox on the government's scheme, click on [ID:nSYD493757]. For a factbox on the opposition's proposed amendments, click on [ID:nSYD466640]. For more on Australia's carbon trading debate, see [ID:CARBONAU])
(To read in-depth articles on Australasian carbon risks and opportunities, visit Carbon Central - Australia's Climate Change Hub , which brings together several of Australia's leading climate-change advisers and solution-providers in one place.)
(Reporting by Rob Taylor; Editing by Mark Bendeich)
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