Australian PM pledges climate plan

Australian Prime Minister John Howard yesterday pledged to establish a national carbon trading scheme by 2012 to cut the country's greenhouse gas emissions, calling it the most momentous economic challenge of our time.

Seeking to deflect opposition charges that he had presided over a decade of foot-dragging on climate change, the conservative leader said an "aspirational" target for reducing carbon emissions would be set in 2008 once the economic costs had been fully studied.

"The scheme will be national in scope and as comprehensive as practicable, designed to take account of global developments and preserve the competitiveness of our trade-exposed, emissions-intensive industries," Mr Howard told a meeting of the ruling Liberal Party's Federal Council.

The centre-left Labour opposition, well ahead in opinion polls before an election due later this year, has pledged to cut emissions by 60 per cent by 2050.

Mr Howard emphasised that the onus would be on the free market to curb emissions and warned that it would mean higher energy costs for business and households.

"The market will sort out the most efficient means of lowering emissions, with all lowering emissions technologies on the table and that must include nuclear power," he said.