AFP: Financial crisis puts heat on Australian govt over climate plan

MELBOURNE (AFP) — Australia's centre-left government is under pressure to water down its plans to tackle climate change as the global financial crisis threatens jobs and economic growth, experts say.

Less than a year after winning office on a strongly pro-green platform, Prime Minister Kevin Rudd faces calls to amend his vision for a carbon emissions trading scheme to begin operating across Australia in 2010.

Opinion polls show wavering public support for dealing with climate change if the economic cost is too high and a number of the firms that will be hit hardest by the plan have urged the government to proceed cautiously.
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Melbourne University's Freebairn agreed but said the government had only itself to blame for the rumblings about the economic fallout from its carbon plan.

"The government has been reluctant to explain to the public that it will cost them, it will push up electricity prices and petrol prices," he said.

"Under the emissions trading plan, the cost was supposed to be mystically carried by business. Or course, business pass on their costs, people are realising that now."