BUSINESS and farmers will not be penalised for emitting greenhouse gases at current levels under the Coalition's climate change policy, Opposition Leader Tony Abbott has promised.
If elected Mr Abbott will instead entice heavy-polluting industries, such as coal-fired electricity plants, to reduce emissions with a series of payments using taxpayer dollars.
The incentive fund is the centrepiece of a package of climate policies the Opposition would establish if in government that would start in July 2011 and cost $10 billion by 2020.
Under the Coalition's fund, which would invest $1 billion annually by 2014, industry would be given a greenhouse gas baseline based on how much is currently emitted.
Industry and farmers would be given government payments for actions they take to reduce emissions under the baseline. If they increase their emissions they will be penalised an amount the Opposition is yet to reveal. ''Business-as-usual does not result in any penalty,'' Mr Abbott said yesterday. Actions taken by industry and farmers that would attract government payments include increasing the carbon content in soil, cleaning up coal power plants and developing recycling programs.
The Coalition will rely heavily on soil carbon measures such as biochar - which are not yet recognised in international climate agreements - making up 60 per cent of all emissions cuts in the package.
Mr Abbott said incentive payments would go to industry only if the proposed green measures reduced emissions, had wider environmental benefits, did not increase prices for consumers and did not cost jobs.
The Coalition will fund its $10 billion policy from savings found in the federal budget, which Mr Abbott said would be released closer to the election.
By comparison the government's proposed emissions trading scheme - which requires industry to buy permits for their emissions - dips into the budget to the tune of $2.5 billion by 2020.
The government will use revenue raised from the sales of permits to compensate households, motorists and industry for price rises in electricity, petrol and gas associated with a carbon price.
The opposition also promised its climate package would match the government's unconditional emissions cut of 5 per cent by 2020. Mr Abbott said the Coalition's policy could be tailored to the government's 15 per cent and 25 per cent conditional 2020 targets, but said he felt it was unlikely those targets will be adopted.
The opposition's five per cent 2020 target reduces greenhouse gases less than the government's target, because it is based on a cut from 1990 emissions levels rather than the government's 2000 baseline.
The difference amounts to 310,000 tonnes less reduction in carbon by 2020. To make up the difference the opposition would have to plant at least another 280,000 eucalyptus trees, costing $1.4 million at $5 a tree.
Other measures in the Coalition's climate package include a $100 million rebate to install solar panels on 1 million houses by 2020, a $50 million plan to plant 20 million trees in urban areas, and a $2 million study into putting electricity cables underground to increase transmission efficiency.
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