Australia has ruled out making deep cuts to greenhouse gas emissions until at least 2020, a decision branded "an embarrassment" by dismayed environmentalists.
The federal government on Monday announced it had set a target of reducing emissions by five per cent by 2020, if the world could not strike a deal on climate change.
The targeted cut will ratchet up to 15 per cent if the world does reach an agreement.
This flies in the face of calls by some scientists for emissions to be slashed by 25 to 40 per cent to avert catastrophic climate change.
The government's own climate adviser, Ross Garnaut, called for a maximum 25 per cent cut.
The 2020 target is crucial because it sums up Australia's climate policy to the world, and will set prices under emissions trading.
Prime Minister Kevin Rudd says the 2020 target is realistic.
"We are not going to make promises that cannot be delivered," Mr Rudd said as he announced the targets in Canberra.
"Right now the prospects of realising (a strong international climate pact) are limited, that's just a call of political reality."
"These targets are appropriate and responsible."
Mr Rudd got a taste of environmentalists' concerns during his speech - three young female protesters marched on him, heckled, and were wrestled to the ground.
Environment groups are howling at the target. A coalition of 60 groups declared it a "total failure" which would lead to the destruction of the Great Barrier Reef.
The Greens said it was the kind of idea that former prime minister John Howard would have come up with.
"Five per cent is a global embarrassment, 15 per cent is way below even the minimum the rest of the world wants to see," Greens Senator Christine Milne said.
Mr Rudd won a more positive response from business groups and the federal opposition.
Concerns that the fight against climate change could force companies offshore and cost jobs have been allayed somewhat.
Opposition emissions trading spokesman Andrew Robb said he would look into the government's plan, but did not raise many criticisms. He had "an open mind" about start dates and targets.
Australian Industry Group chief executive Heather Ridout said the plan was a positive compromise, but would still pose problems for business.
The government also released its final plan for emissions trading, which is the main mechanism for cutting emissions and will start in July 2010.
Emissions trading will impose a price on carbon which will push up the price of electricity, gas, and other goods. Household bills will rise by $6 a week.
The rewritten scheme will be more generous to business. More businesses will receive free pollution permits, and they will get more of them.
By 2020, almost half the permits in the system will be given to business for free.
There will be more than $4 billion in assistance - cash and free permits - to coal-fired power stations and coal mines.
Some households will also receive substantial compensation. Payments to pensioners, seniors, carers and people on the dole will be boosted to more than cover costs.
Other low-income households, and some middle-income households, will get full compensation.
The rewritten ETS churns out most of the scheme's $12 billion in annual revenue back to businesses and households.
As expected, petrol will be effectively excluded from the scheme for the first three years, and agriculture for the first five years.
The government thinks the carbon price will start at $25 a tonne. The price will be capped for five years, starting at $40 a tonne.
The scheme is expected to cause a spike in inflation of 1.1 per cent.
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