Australia to start carbon trading scheme in two years
Updated
The Australian government is sticking with its plan to start a carbon trading scheme in two years that will make electricity more expensive.
Our reporter, Louise Yaxley, says the government's discussion paper outlines a range of ways to compensate people and industry for the changes.
The green paper says if the carbon price is $US20 a tonne then the cost of living would rise by just under one per cent.
The climate change minister, Penny Wong, says pensioners and low-income households will be compensated for the higher costs.
She says government is protecting motorists from higher petrol prices for the first three years by cutting excise by the equivalent of the carbon price.
"We do need to give people ... time to make the change," she said.
The thousand biggest polluters will buy permits from the start of 2010 - but those most affected will get up to 90 per cent of their permits free and that has outraged environment groups.
