Greens offer interim carbon deal

THE Greens hope the climate change plan they are negotiating with the government could be a circuit breaker.

THE Greens are cautiously optimistic that the climate change plan they are negotiating with the government could be a circuit breaker able to win support from Labor and the Coalition in the Senate.

The Greens are offering the Rudd government a climate change "Plan B" which would start an emission reduction program with a direct carbon price, while leaving the decision on establishment of a carbon market for later.

That would also allow the government to revamp and simplify its politically-fraught household compensation package.

Greens leader Bob Brown said he thought the plan -- for an interim carbon tax starting at $23 a tonne for two years while agreement was reached on the best kind of carbon pricing -- "has got a real prospect of being the circuit breaker the community wants to see on this issue".

Greens senator Christine Milne has had two meetings with Climate Change Minister Penny Wong about the plan, which would allow the government to leave open the possibility of a long-term carbon tax if the US moves away from an emissions trading market, and to increase and simplify household compensation measures, which it is struggling to explain.

For the Greens the plan at least leaves open the possibility of a tougher emission reduction target, instead of both major parties locking in behind a minimum 5 per cent cut in emissions by 2020. Australia's target would be determined after the two-year interim period.

"It puts a carbon price in place straight away, that starts the job and offers some certainty to business and it at least leaves the door open for a tougher target down the track, even though that would not be guaranteed," Senator Brown said.

For the plan to succeed it would need the support of two other senators -- at least one of the two Liberal senators who crossed the floor to vote with the government on the emissions trading legislation and independent Nick Xenophon.

Both the Greens and Labor are sounding out those votes.

"I am due to meet both Senator Brown and Senator Wong next week. I remain to be convinced, but I am willing to talk," Senator Xenophon said yesterday.

Neither of the Liberal floor crossers -- Judith Troeth and Sue Boyce -- would comment, but Senator Brown said he would also seek to talk to them next week.

The Greens have adopted a suggestion originally made by government climate adviser Ross Garnaut in his 2008 report that an interim carbon price could rise by 4 per cent plus the inflation rate each year.

Senator Wong is refusing to comment on the talks -- the same rule she applied to her "good faith" negotiations with former Liberal leader Malcolm Turnbull last year.

Tony Abbott has seized on the government's difficulties in explaining the impact of its ETS on different types of households, saying Kevin Rudd had "started to sound much like John Hewson trying to explain the impact of GST on the price of a birthday cake".

"In the last 24 hours the Prime Minister, the Deputy Prime Minister, Penny Wong and Greg Combet have all been asked how people will not be worse off under Labor's great big new tax . . . and they just can't do it," the Opposition Leader said.

"Now, a government that doesn't know the impact of its policies on the Australian people should drop those policies."

He challenged Mr Rudd to call an early election. "I say bring it on," Mr Abbott said.