PRIME Minister Kevin Rudd last night did an about-face on deep cuts to greenhouse gas emissions, days after Australia’s delegation backed the plan at the climate talks in Bali.

A government representative at the talks this week said Australia backed a 25-40 per cent cut on 1990 emission levels by 2020.

But after warnings it would lead to huge rises in electricity prices, Mr Rudd said the Government would not support the target.

The repudiation of the delegate’s position represents the first stumble by the new Government’s in its approach to climate change.

Mr Rudd said he supported a longer-term greenhouse emissions cut of 60 per cent of 2000 levels by 2050.

But the Government would not set medium-term targets until a report by economist Ross Garnaut was completed next year.

“I think speculation on individual numbers prior to that is not productive and I would suggest it would be better for all concerned if we waited for the outcome of that properly-deliberated document,” Mr Rudd said.

The electricity industry yesterday warned it may not be able to meet growing consumer demand and comply with the 2020 target.

Energy Supply Association of Australia chief executive Brad Page said a 17 per cent power price rise in Victoria would seem “pretty modest” compared with the cost of complying with the target.

An ESAA report released this year found cutting carbon emissions by 30 per cent of 2000 levels by 2030 wold push up power costs by 30 per cent.
http://www.news.com.au/heraldsun/story/0,21985,22883548-662,00.html

(Dr. Benny Peiser)