TAXPAYERS will foot the bill for big polluters under an opposition plan that will rely primarily on the federal government paying for measures to offset carbon emissions.
The Coalition party room was briefed this morning on an alternative to the government's emissions trading scheme.
Sources have told smh.com.au that it relies heavily on reducing carbon by sequestering it in soil and also includes tree planting.
It proposes that the government will spend about $1 billion a year purchasing carbon offsets to keep pollution levels down and meet the aim of reducing emissions by 5 per cent by 2020.
But because there is no cap on pollution, or no tax on polluters, there is no incentive to reduce pollution.
If pollution levels increase, the government will have to dig deeper into the budget for the additional offsets. One MP said former opposition leader Malcolm Turnbull voiced concerns over the veracity of the scheme, saying it shifted the responsibility from the polluters to the government.
It is understood he reaffirmed his commitment to cross the floor and vote for the government's amended scheme, the legislation for which will also be reintroduced today.
Prime Minister Kevin Rudd said this morning that opposition leader Tony Abbott was offering a magic pudding and, unlike with the government's scheme, there would be no compensation for taxpayers.
"He's going to transfer the burden, it seems, for the costs of his scheme on to taxpayers," he said.
The government's proposed ETS places a cap on carbon emissions. Polluters pay for each tonne of emissions and the revenue raised is churned back to households and business as compensation and transitional assistance.
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