Australia to launch carbon-trading scheme

Australias Prime Minister John Howard pledged on May 27 to establish a national carbon-trading scheme by 2012 to cut the country’s greenhouse gas emissions. Howard said dealing with climate change would be the most momentous economic decision Australia would take in the next decade. Carbon trading involves putting a price and limits on pollution, allowing companies that clean up their operations to sell any savings below their allocated level to other companies. According to a report compiled by government officials and business leaders, Australia accounted for 1.5% of global carbon emissions. Australia relies on coal for about 80% of its power generation needs, with renewable energy contributing only about 5%. (June 3, 2007)