Major league carbon emitter Australia has delayed the introduction of a cap-and-trade scheme to regulate its greenhouse gas emissions.

In order to ‘manage the impacts of the global recession’, prime minister Kevin Rudd announced on Monday 4 May, the system will be phased in from 1 July 2011, a year later than planned. Rudd had introduced draft legislation of the carbon pollution reduction scheme in March, but it has faced mounting criticism from opposition politicians.

What’s more, until July 2012 permits to emit carbon dioxide will be sold at the fixed price of AU$10 (US$ 7.4) a tonne – and companies will be able to buy an unlimited number of them, so there will be no ‘cap’ involved.

Rudd said he still hopes to push the necessary legislation through parliament this year. He also revised the upper limit on Australia’s emissions reduction target to 25% below 2000 levels by 2020, up from 15%, depending on agreements reached at December’s UN summit in Copenhagen.