The Australian government delayed the start date for a proposed carbon trading scheme by a year, to July 1, 2011, in a move designed to help it negotiate the policy through a finely-balanced upper house, or Senate.
It comes amid mounting pressure from business groups and the main opposition Liberal-National coalition party to delay the planned legislation, which they say would impose significant additional costs on firms already reeling from the impact of the global economic crisis.
The revised legislation also calls for Australia to adopt a one-year fixed-price period where carbon permits will cost just $10 per tonne of carbon, with a transition to full market trading from mid-2012.
A new "global recession buffer" will also be introduced, providing additional aid to trade-exposed and energy intensive industries.