South Australia is already threatening to go it alone on a carbon scheme for the electricity sector, ahead of a meeting of federal and state leaders.
Premier Jay Weatherill’s warning comes after the federal government ruled one out an emissions intensity scheme as part of its review into climate change policy, following criticism from some of its own MPs.
A report by Chief Scientist Alan Finkel to be presented at Friday’s Council of Australian Governments meeting in Canberra is expected to recommend such a scheme.
Mr Weatherill told ABC radio on Thursday he’ll be pressing the states to team up to create their own scheme “in the absence of national leadership”.
“Our first instinct is of course to seek a national scheme,” he said, adding it could be done without federal government support.
Mr Weatherill said power prices in SA would go down if an emissions intensity scheme was adopted.
But Prime Minister Malcolm Turnbull warned the SA proposal would put jobs and businesses at risk.