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Australia scraps carbon permit auction plan

Published on Feb 24, 2014 10:48 AM

BEIJING (REUTERS) - Australia's conservative government on Monday scrapped plans for the auction of 60 million carbon permits before mid-year, in line with its intention to roll back the previous Labor administration's proposed emissions trading scheme.

The auctions had been designed to allow big emitters to hedge their future exposure under Labor's plan to launch the trading scheme in July 2015.

The new government is expected to repeal the carbon pricing scheme in July when the balance of power shifts in Australia's Senate.

"This gives business certainty that they no longer need to take part in carbon unit auctions," Climate Change Minister Greg Hunt said in a statement.

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