Canberra unveils ambitious carbon trading scheme

Australia pledged to cut its greenhouse emissions by 5 to 15 percent by 2020 as it unveiled yesterday the world's broadest carbon trading scheme, rebuffing business calls for a delay due to the global slowdown.

While Australia is now second only to the European Union in its drive to cut emissions by establishing a cap-and-trade system that puts a price on carbon output, critics said the target was too weak and blasted the trading plan that will give free credits to some of the economy's most carbon-intensive industries.

Prime Minister Kevin Rudd said the carbon scheme was vital for Australia, which has the fourth-highest per-capita greenhouse gas emissions in the world, and five times more per person than China, due to its reliance on coal for electricity.