Rudd picks Robert Hill to head carbon trust

KEVIN Rudd has turned to a former Howard government minister to head the Australian Carbon Trust, in a move that will further exacerbate Coalition tensions on climate change.

As environment minister, Robert Hill led the Australian team at the Kyoto climate change conference in 1997.

The appointment creates new problems for Opposition Leader Malcolm Turnbull, who has angered some senior colleagues by publicly floating a new emissions trading strategy despite failing to win shadow cabinet support for the position.

The Carbon Trust is designed to help Australian households contribute directly to reducing carbon pollution by promoting energy efficiency measures to households and businesses.

Mr Hill, who served as environment minister between 1996 and 2001 before representing Australia at the United Nations, described the Kyoto Protocol as a landmark agreement for the global environment.

"The Kyoto Protocol protects Australia's export competitiveness and employment prospects in Australia's substantial mineral processing and energy export industries," he said at the time.

"The agreement to establish a greenhouse gas emissions trading regime will be an essential component of this."

Professor Hill is understood to have supported the ratification of Kyoto, but this did not occur until the election of the Rudd government.

Mr Rudd said Professor Hill would work with the board to manage and implement the Trust's two key initiatives; the Energy Efficiency Savings Pledge Fund and the Energy Efficiency Trust.

"The Energy Efficiency Savings Pledge Fund will provide a web-based calculator so that households can calculate their energy use and the dollar savings that result from energy efficiency activities,” Mr Rudd said.

"Individuals will be able to pledge the resulting savings, or any other amount, to the Pledge Fund to buy and cancel carbon pollution permits. This will enable individuals to directly contribute to achieving Australia's emissions reduction targets. The Pledge Fund will be entirely voluntary and contributions will be tax deductible.

"The Energy Efficiency Trust will bring together public and private seed funding, business skills and culture and technical knowledge to leverage investment in energy efficiency activities in commercial buildings and other business operations."

The Australian Carbon Trust will be developed in collaboration with the Carbon Trust in the United Kingdom, which works with business to cut carbon and develop commercial low carbon technologies.