Switch to emissions trading now, industry group says

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Switch to emissions trading now, industry group says

Australia should end its bickering over a carbon price and move to an emissions trading scheme (ETS), the head of a manufacturing lobby group says.

Australian Industry (Ai) Group chief executive Innes Willox says the fixed carbon tax should be scrapped, with the policy changed to an internationally linked ETS where markets determine the carbon price.

Mr Willox said carbon costs on business would fall by 75 per cent, while electricity prices would drop by an average 10 per cent for business and households.

"Australia's emissions targets would still be met, with abatement happening wherever it is cheapest, including overseas," he said in a statement on Thursday.

"Full emissions trading without the carbon tax element would slash the uncompetitive burden that has been imposed on Australian industry and the Australian community and which is dampening jobs growth."

Australia's price on carbon emissions is $23 a tonne, and is set to rise to $25.40 by 2015 when it transfers to a market scheme on July 1, 2015.

This compares with $6 a tonne in Europe.

"Australian businesses could be taking advantage of these low international prices through emissions trading," Mr Willox said.

Mr Willox said the same environmental benefit could be achieved with the emissions trading scheme beginning two years early on July 1.

Both Labor and the coalition are committed to cutting Australia's greenhouse gas emissions by five per cent below 2000 levels.

AAP

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