Emissions trading backflip a recipe for price rises, say business groups

Lobbyists dismayed by Coalition ruling out carbon trading, warning those fighting it 'are going to get almost exactly the outcome they're trying to prevent'

Business and environment groups have expressed dismay at the federal government for scrapping consideration of an emissions intensity trading scheme in the electricity sector as part of its 2017 review of climate change policies, just a day after floating the possibility.

On Wednesday a range of experts said the abrupt backflip by the environment and energy minister, Josh Frydenberg, on Tuesday night would create further regulatory uncertainty, which was a recipe for higher power prices down the track.