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SYDNEY: Australia on Monday increased concessions for big polluters and delayed the start date of its emissions trading scheme because of the global financial crisis, in a stark shift on climate policy.

Prime Minister Kevin Rudd said the deepening global recession meant local emissions trading could not begin until July 2011, one year later than previously planned.

In a concession to green groups, Rudd said Australia would cut its greenhouse gas emissions to 25% of 2000 levels by 2020 – up from 15% previously.

"Worst recession since Great Depression"

But he said the revised target would only apply if world leaders also signed up to an "ambitious" reduction target in Copenhagen in December. Without an agreement, Australia's target will remain unchanged at 5%.

"The worst global recession since the Great Depression means we must adapt our climate change measures but not abandon them," Rudd told reporters. "The start date of the carbon pollution reduction scheme will be delayed one year to commence from 1 July 2011."

It was a marked change in position by Rudd, who has for months insisted his government would proceed with emissions trading in 2010, despite the global market turmoil.

With Australia already suffering its worst drought in a century, the prime minister said late last year that failure to act on climate change could be disastrous, labelling any delay "reckless and irresponsible".

"Appropriate response"

But in a change of tack, Rudd pushed back the trading scheme start date and said a one-year fixed-price period for carbon pollution permits would apply until July 2012 to assist businesses hit hard by the credit crunch.

Rudd said that during the fixed-price phase, an unlimited number of permits would be issued to eligible companies at a price of A$10 (US$7) per tonne.

He also said a "global recession buffer" would be provided for emissions-intensive trade-exposed industries, extending their pollution allowances for a "finite period".

He rejected claims that the changes softened his centre-left government's stance on climate change."This, we believe, represents an appropriate response to the current uncertainty," Rudd said.