PRIME Minister John Howard's greenhouse report will recommend the Australian Government establish a carbon emissions trading scheme in four years.
The study - details of which Mr Howard is yet to release - says the best way to cut greenhouse emissions is through a cap and trade system with the market setting a price for carbon.
This model relies on the setting of targets to limit emissions, but the report stops short of naming specific targets - instead saying more detailed modelling is needed.
Crucially for consumers it warns there will be a cost for cutting emissions - indicating that households should prepare for higher electricity prices.
Church calls for low-income aid
Major church and welfare groups wrote to Mr Howard yesterday demanding protection for low-income earners from expected power price rises.
In high-income households, the impact is less than for low-income households, warned Catholic welfare agency head Frank Quinlan.
The 270-page report also argues strongly in favour of nuclear energy, saying Australia must try to develop all forms of low-emission energy sources.
This includes nuclear power, clean coal technology and renewable energy such as wind and solar.
In other key findings, the report will say:
The report also says introducing an emissions trading scheme before 2011 could undermine its effectiveness.
Mr Howard is sure to seize on this after Labor leader Kevin Rudd this week announced a Labor government would introduce an emissions trading scheme in 2010. Labor has also recommended a long-term target of a 60 per cut in emissions by 2050.
Liberals attack Garrett
Mr Howard has constantly criticised Labor for plucking numbers out of the air and yesterday in Parliament he focused his attack on Opposition environment spokesman Peter Garrett.
Labor said yesterday it had secret opinion polling from 2006 that showed great public concern with climate change that it claimed the Government buried.
A cap and trade scheme relies on the setting of a target to limit carbon emissions and then permits are issued which can be traded.
Big emitters, such as coal-fired powered stations, might have to buy extra permits if they cannot reduce their level of emissions.
