Direct Action review: Coalition leaves carbon trading option open

Climate policy review will look at possible changes to safeguard mechanism, which could convert to baseline and credit scheme

The Turnbull government has left open the option of reinstating a form of carbon trading in the electricity sector, allowing its looming review of the Direct Action climate policy to consider policy mechanisms to reduce emissions on a "sector-by-sector basis".

The government has also put the emissions reduction fund and its safeguard mechanism on the table for the review, which will be conducted internally within the federal Department of Environment and Energy, and report at the end of 2017.