Australia Reaches Climate Policy Compromise

Australia's government has reached a compromise with independent senators and a key opposition party to secure support for a A$2.5 billion ($2.2 bln) fund to cut greenhouse gas emissions, media reports said Wednesday.

The ruling Liberal party has secured backing from the Palmer United Party (PUP) and independent senators Nick Xenophon and John Madigan, with details to be released later on Wednesday, according to the Guardian and the Australian Financial Review.

A compromise would put an end to a years-long debate on how Australia can meet its target of cutting greenhouse gas emissions to 5 percent below 2005 levels by 2020.

In August, the government dismantled a broad carbon pricing scheme put in place by the previous Labor government, saying it was too expensive.

Under the policy, known as the Direct Action Plan, the government would set up a $2.5 bln Emissions Reduction Fund that would pay big polluters to cut their emissions.

According to the Guardian, the government has accepted proposals by Senator Xenophon to put in place a "safeguard mechanism" to ensure emissions in the coal-dependant nation do not rise under the new scheme.

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