Rudd Says Australian Carbon Plan Won't Be Derailed by Turmoil

By Gemma Daley

Oct. 14 (Bloomberg) -- Australia's plan to introduce an emissions-trading system in 2010 to cut harmful gases won't be derailed by the global financial rout, Prime Minister Kevin Rudd said.

The government wants to introduce a carbon-trading system as part of reducing emissions by 60 percent by 2050. Woodside Petroleum Ltd. Chief Executive Don Voelte this week said the system was ``dead on arrival'' because of the economic downturn and urged Rudd to put it on hold, the Australian Financial Review reported today.

``On emissions trading, our ambition remains 2010,'' Rudd told reporters in Canberra today. ``Climate change is not going to go away.''



Rudd, who ratified the Kyoto Protocol on his first day in office last November, is yet to set short-term targets for carbon reduction. The government is due to complete the design of the emissions system by the end of the year to pass laws in early 2009.

Australia today announced A$10.4 billion ($7.4 billion) in grants to households, pensioners and home buyers to boost the economy as the global financial crisis freezes credit and slows economic growth.

To contact the reporter on this story: Gemma Daley in Canberra at gdaley@bloomberg.net