Labor outlines its climate policy ahead of federal election

Bill Shorten has unveiled his plan to cut emissions if Labor wins the election. But the strategy has already been labelled a new carbon tax.

Australia’s 250 biggest-polluting companies will be given incentives to cut emissions below their current levels if Labor wins the next election.

Labor leader Bill Shorten is promising exemptions from the new scheme for major industries like steel and agriculture, which he’ll work with to cut pollution.

Mr Shorten said his climate policy was an extension of Malcolm Turnbull’s “safeguard mechanism” that puts limits on pollution by big industries.

“There will be no carbon tax, carbon pricing mechanism or government revenue,” Mr Shorten said.

“Labor has listened to industry and stakeholders who desperately want stability after this chaotic government.

“They don’t want to start from scratch with another mechanism. Industry feedback has been unanimous, businesses want Labor to expand the safeguard mechanism, and we’ve listened.”

Some big polluters had their baseline pollution limits set above their worst polluting days, meaning the limit effectively allowed them to increase pollution.

Mr Shorten said that would end, and businesses would be encouraged to lower their current pollution levels, while their baseline pollution limits would be reduced.

Speaking on Today this morning, independent Senator Derryn Hinch said the Coalition would use Labor’s energy policy as part of its election campaign.

Opposition Leader Bill Shorten has outlined his climate policy.

“It is a carbon tax in disguise really, isn’t it?” Today host Georgie Gardner asked Mr Hinch.

“Yes it is. The government will go after this one in the same way that Labor did last time with the Medi-scare campaign. They hit it hard. I think it is going to be a very dirty election actually,” Mr Hinch said.

“We may well end up fighting a carbon tax again on May 11, the date most people down here are saying the election would be held.

“Both sides have to come up with some incredible emissions scheme of some sort. Bill

Shorten is going to spell it out today.”

Labor also confirmed it will not use the carbon credits from the earlier Kyoto climate agreement to meet Australia’s targets under the Paris agreement.

“By allowing the carry-over of Kyoto credits, the Liberals’ already weak target effectively falls from 26 per cent to 16 per cent,” Mr Shorten said.

“Using Kyoto credits is fake action on climate change, and Ukraine is the only other country in the world to confirm they will do this.”

The agricultural sector will not be covered by the expanded safeguard mechanism, and Labor is planning to work with the sector to help meet its commitment to be carbon neutral by 2030.

Electricity generators will also not be covered by the mechanism, instead falling under Labor’s energy policy.

A $300 million strategic industries reserve fund will be established to help trade-exposed industries like steel, aluminium and cement manufacturing to remain internationally competitive.

Labor will also set a national electric vehicle target of 50 per cent of new car sales by 2030, as Australia lags behind other developed nations in adopting the new models.

“Incredibly, New Zealand has more electric vehicles than Australia,” Mr Shorten said.