Emissions battle to focus on aluminium

EXEMPTIONS for aluminium producers will be at the centre of negotiations between the government and opposition on Monday over legislation to force major power users and retailers to source 20 per cent of their electricity from renewables by 2020. As foreshadowed in The Australian yesterday, the government will drop its failed negotiating tactic of linking compensation arrangements under the renewable energy bill to the emissions trading scheme, which was voted down in the Senate on Thursday. The list of proposed amendments opposition environment spokesman Greg Hunt delivered to Climate Change Minister Penny Wong yesterday went well beyond the "decoupling" of the two bills, which the government had tried to use as a tactic to pressure the coalition to pass the ETS. The amendments also included a demand that aluminium producers get additional exemptions from the costs of the scheme, which would be worth $550million over 10 years, according to the Aluminium Council. The opposition is also proposing that companies capturing and using coalmine methane to generate energy be covered and that some of the renewable energy permits be set aside for still-developing technologies such as geothermal. In stark contrast to the hostilities over the emissions trading scheme, both sides were positive about reaching an agreement on the renewable energy laws, which will be debated in the House of Representatives on Monday and the Senate on Tuesday. The battle of emissions trading continued yesterday, with Kevin Rudd blaming Malcolm Turnbull for the legislation's defeat, saying it was impossible to negotiate with an opposition that had not even put forward any amendments. "We've said repeatedly, 'give us some amendments'," the Prime Minister told Melbourne radio. "Remember, this thing, which was voted down by the Liberals in the Senate yesterday -- not one single amendment was put forward by the Liberals." The Opposition Leader said it was Mr Rudd who had spurned the negotiating table. "If he was serious about getting agreement on an emissions trading scheme, then he would have been talking to us," Mr Turnbull said. "He has rebuffed any attempt by us to negotiate, forced it to a vote now and said they'll bring it back in November. And that's because it fits in with the constitutional timetable for a double dissolution ... his aim is to get to an early election ahead of next year's budget because he knows he's going to have to make some tough economic decisions which will be unpopular." Mr Rudd denied the early election allegation. "I have not the slightest intention of going to an early poll," he said. "I don't think people like that. I think they want you to serve the term that you've been elected for. So I would just really like this thing to get through." Mr Hunt said he would be "flexible" on his proposed amendments. The delay to the renewable energy laws has caused disruption and uncertainty and is costing an estimated $2m a week.