An independent review of climate change in Australia has laid out suggestions for how the country might construct an emissions-trading scheme.

On 4 July, economist Ross Garnaut released a draft of the report commissioned by the Labor government of Prime Minister Kevin Rudd. Although the final report is not due until September, the draft outlines Garnaut's suggestions for how emissions trading could begin in 2010.

The report urges the government to include as many sectors as possible, including transportation, and to auction off carbon permits. Of the revenue generated, it recommends that 50% should go to households to offset resulting rises in energy prices, 30% to business, and 20% to research and commercialization of new technologies.

A government green paper outlining trading-scheme plans ahead of legislation is due this month, and will “take into account Garnaut's views”, says climate-change minister Penny Wong.