The Australian government has overnight performed a sudden backflip on its plan to introduce an emissions trading scheme, less than 48 hours after Energy Minister Josh Frydenberg announced a feasibility study into a "carbon tax" program.
Earlier this week, Frydenberg said the government was investigating the feasibility of an emissions "intensity scheme", but stressed the government would not implement a tax similar to the all-encompassing carbon tax on Australian businesses introduced by Labor in 2011 and scrapped by former PM Tony Abbott in 2014.
He said an intensity scheme would tax energy companies by their rate of carbon emissions, however following backbench revolt, both Prime Minister Malcolm Turnbull and Frydenberg have since backflipped on the plan; Late on Tuesday, Turnbull said he has "never supported a carbon tax", while Frydenberg has since said the government had never even contemplated it.
"The government will not introduce an emissions intensity scheme, which is a form of trading scheme that operates within the electricity generation sector," he told News Corp on Wednesday. When initially announcing the feasibility study on Monday, Frydenberg said "a number of bodies that have recommended an emissions intensity scheme (and) we'll look at that", something which drew ire from conservative colleagues, including Cory Bernardi who labelled it "one of the dumbest things" he has heard.
Following the backflip, opposition frontbencher Richard Marles said Turnbull had failed to assert his authority over his backbenchers, calling the government "divided" and without strong leadership.
"The government is completely divided; the responsible minister is saying one thing but he's being overruled by the former Prime Minister (Tony Abbott), by (conservative Senator) Cory Bernardi, by others in the cabinet... Malcolm Turnbull used to believe in pricing carbon," Marles told Sky News on Wednesday.
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