Clive Palmer will help axe carbon tax but courts Al Gore in push for ETS

Updated

Plans to scrap the carbon tax will be discussed over breakfast this morning when Clive Palmer meets with Prime Minister Tony Abbott for the first time in two years.

Mr Palmer revealed yesterday that his party would back the repeal of the carbon tax only if lower power prices for consumers were guaranteed, but would vote to stop the Government axing key climate change bodies.

Flanked by climate change campaigner and former US vice-president Al Gore, Mr Palmer said his Palmer United Party (PUP) would vote against the Coalition's bid to abolish the Clean Energy Finance Corporation, the Renewable Energy Target and the Climate Change Authority.

The PUP leader said his party also wanted to see the creation of an emissions trading scheme similar to the one proposed by former Labor prime minister Kevin Rudd.

But this version would "only become effective once Australia's main trading partners also take action to establish such a scheme", Mr Palmer said.

"True to our promises to the Australian people at the last election, Palmer United senators will vote in the Senate to abolish the carbon tax," he said.

"In doing so, Palmer United senators will move an amendment that all producers of energy are required by law, not by choice, to pass on to all consumers of energy the savings from the repeal of the carbon tax."

It is not clear how such a condition could be imposed on companies by the Parliament.

In an interview on the ABC's Lateline program, Mr Palmer confirmed his senators would back the carbon tax abolition even if an emissions trading scheme is not introduced.

Axing the tax was the major campaign platform and election promise for Mr Abbott during last year's election.

Environment Minister Greg Hunt called a press conference shortly after Mr Palmer's announcement, to hail the "signature" decision to back the carbon tax repeal bill.

He said he was "relaxed" about the PUP leader's plans and appeared willing to meet Mr Palmer's demands on power prices.

"In terms of the question as to whether or not the full cost of savings will be passed through to families, there are already guarantees in the legislation," he said.

"However, we are willing to provide additional guarantees and to work with Mr Palmer and the Palmer United Party on any further legislative amendments."

As the largest voting bloc on the new micro-party cross bench, the PUP will hold the balance of power when the Senate changes over next Tuesday.

Its power has been boosted by an agreement with Victoria's Motoring Enthusiast Party senator Ricky Muir.

Greens want Palmer to clarify ETS intentions

Mr Palmer, who has previously been cynical about the effects of global warming, said "climate change is a global problem and it must have a global solution".

He told Lateline that his road-to-Damascus moment came after speaking with Mr Gore.

"Meeting with the vice-president, someone who is a world authority on that, was able to enlighten me on a number of aspects about climate change which I wasn't fully familiar with and the importance of it for all Australians," Mr Palmer said.

"Of course all of us can change our view given more information ... and I'm satisfied it is a matter of great concern.

"There's no point listening to people if you're not prepared to change your view on certain things.

"I don't think we've got a drastic problem we need to worry about. I'm sure we can manage it, but it needs to be a global problem. It's not a problem for Australia, it's a problem for the whole world."

The Greens have welcomed Mr Palmer's move to support the retention of the climate change institutions it set up with Labor.

But party leader Senator Christine Milne has told the ABC's 7:30 program that Mr Palmer needs to clarify his intentions regarding emissions trading.

"He seems to be wanting it every which way," she said.

"I don't know whether Clive Palmer actually understands we've already got an emissions trading scheme, that it's legislated, that it's already linked to the European Union and that it's working.

"I'm not sure how much he understands or whether this is a cynical ploy."

Labor is not saying whether it will support Mr Palmer's plan for an emissions trading scheme.

A spokesman for the Opposition says it remains to be seen if Mr Palmer's proposal delivers an effective scheme.

Gore praises push for ETS but axing carbon tax 'not favourable'

Mr Gore, a co-recipient of the Nobel Peace Prize with the Intergovernmental Panel on Climate Change in 2007 for his efforts to build awareness of the dangers of man-made climate change, said the announcement marked an "extraordinary moment".

"It is so significant that Clive Palmer has announced that his party will support the continuation of the Renewable Energy Target and the continuation of the Clean Energy Finance Corporation and the continuation of the Climate Change Authority," he said.

Mr Gore served as US vice president for eight years from 1993 and has spent most of his time since leaving office focusing on ways to combat climate change - efforts which were the subject of the 2006 documentary An Inconvenient Truth.

He praised Mr Palmer's plans to fight for a new ETS in Australia but admitted axing the carbon tax was not favourable.

"While I will be disappointed if the immediate price on carbon is removed because it is a policy which I believe to be ultimately critical to solving the climate crisis, I am extremely hopeful that Australia will continue to play a global leadership role on this most pressing issue," Mr Gore said.

Mr Palmer told Lateline he did not pay Mr Gore for his cameo appearance, but "we bought him lunch or dinner".

The breakfast meeting between the soon-to-be Senate kingpin and the Prime Minister could be crucial for the Government's agenda.

It will be the first time the two have met since they fell out at a Liberal Party national conference in 2012.

If Labor and the Greens oppose government legislation, Mr Abbott will have to negotiate with a micro-party cross bench of eight senators, six of whose votes will be needed to pass any bills.

Mr Palmer has already declared the PUP will not support billions of dollars in budget measures including the $7 GP fee, the increase to fuel excise, the new paid parental leave scheme and changes to pensions.

Legislation to axe the Clean Energy Finance Corporation - which funds renewable energy projects - has already been knocked back by the Senate twice, giving the Abbott Government its first trigger for a double dissolution election.

The Renewable Energy Target, which also sets to boost the use of renewable energy, is currently being reviewed by the Government.

And the Government wants to scrap the Climate Change Authority, which was set up to review the RET and Australia's emissions reduction targets, but the Senate has knocked back that legislation once.

Legislation for the Government's direct action plan passed the Lower House on Wednesday night but faces almost certain defeat in the Senate.

Topics: climate-change, environment, clive-palmer, minor-parties, political-parties, government-and-politics, federal-parliament, australia

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