The Government is committing to an unconditional 5pc reduction in Australia's carbon emissions by 2020, but the target could be as high as a 15pc reduction if a global agreement is reached next year.
Prime Minister, Kevin Rudd, is today unveiling the Government's emission reduction targets at the National Press Club in Canberra.
It's seen as a "reality check", locking into national emissions targets but leaving scope to slot in with any global agreement, although any major breakthrough deal is seen as unlikely next year.
The cuts are based on year 2000-level emissions, with a long-term view to reducing carbon pollution by 60pc by 2050 based on that level also.
The 5-15pc targets equate to a per capita reduction of 27-34pc in emissions.
While the targets fall well short of what green groups have been calling for, the Government has not been short on compensation and assistance.
Every cent it raises from the scheme will be given back to households and business through some sort of compensation, it says.
A massive financial package worth $6 billion a year was also unveiled today to help households adapt to increases in electricity, primarily, with average bills expected to rise by at least $4 a week.
The Government also promised to assist motorists with a "cent for cent" reduction in fuel tax for the first three years of the scheme, and a similar scheme is expected for farmers to cope with the higher cost of fuel inputs while they are outside the scheme.
A further $2.15 billion over five years will be available to help business and communities and organisations through a new Climate Change Action Fund.
Substantial assistance will be made available to emissions-intensive trade exposed (EITE) industries.
Eligibility of specific activities for assistance to EITE industries will be determined next year, but carbon permits will be provided to new and existing export-oriented firms which produce a certain amount of carbon per million dollars of revenue.
While agriculture won't be considered for coverage until 2013, agricultural-related businesses like meat processors, abattoirs, sugar and flour mills and dairy processors could be eligible for assistance if they are big enough emitters and meet the revenue threshold.
It's expected very few of those companies will meet the thresholds, and will receive assistance instead through the climate change business action fund.
There are no changes in the treatment of agriculture in this paper to the discussion paper released earlier this year.
The Government said it does not consider it practical to include agricultural emissions in the scheme at the commencement.
From the start of next year the government will begin researching cost effective methods for inclusion and research to improve emissions estimation and development of emissions reporting capabilities.
It says it has already submitted a list of its priorities for the next round of negotiations in the formation of a new global agreement on climate change, with changes to international accounting rules to better reflect the life-cycle of agricultural related emissions such as soil carbon capture and better land management practices.
Minister for Climate Change, Penny Wong, said these were "hard targets" covering 75pc of the economy.
She said she was conscious this was a reform going over a number of decades, not just the next election cycle.
She said it recognises existing financial circumstances and the global financial crisis.
"The impacts of climate change are significant, real and have already commenced," Senator Wong said.
She said this was a reform which asked for Australians to "pay more" and "do more" for the security of future generations.
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