Australia seen reshaping climate policy before poll

SYDNEY, July 13 (Reuters) - Australia's government may unveil on Tuesday restrictions on coal-fired power stations and new energy efficiency targets, media reports said, as Prime Minister Julia Gillard seeks to recast climate policy ahead of elections.

A late August election may be called within days.

The cabinet will meet on Tuesday and is expected to discuss a new climate policy, but it is not clear whether Gillard will go as far as announcing a carbon tax as an interim measure before a full blown carbon trading scheme can be created.

She has said a carbon price is inevitable, probably via a market-based scheme, but that any decision on such a scheme would not be until 2012 and not without community consensus.

But voters want quick action on climate change, according to opinion polls.

The Sydney Morning Herald reported on Tuesday the cabinet would debate a proposal to cut energy consumption by up to 3 percent a year.

It quoted sources as saying the cabinet may also opt for setting nationwide energy-efficiency standards and possibly a scheme to allow farmers to claim credit for saving emissions through forestry.

The paper said the cabinet will also consider pollution standards for new electricity generators and requirements for existing generators to look at reducing greenhouse gas emissions.

Australia's top two energy retailers are Origin Energy Ltd (ORG.AX) and AGL Energy Ltd (AGX.AX).

The Australian newspaper said the government was considering a series of measures to restore its green credentials including placing tough restrictions on all new coal-fired power stations.

Australia is the world's top coal exporter, relying on coal to generate more than 80 percent of its power.

Labor took power in 2007 promising to tackle climate change, but under Rudd failed to implement a carbon trading scheme, a move which saw Green voters desert Rudd.

Labor needs to woo them back to ensure victory over the Liberal-National opposition.

Gillard, 48, replaced Kevin Rudd on June 24, in a move that has resurrected Labor's electoral standing and reshaped Australian politics.

Opinion polls published on Monday showed the Labor party is set for a narrow victory in upcoming elections, ahead of the conservative opposition at 52 percent versus 48 percent. For Reuters Poll Tend [ID:nSYU010167]

Gillard has also been seeking to reframe government policy in sensitive areas such as over a new mining tax and on asylum seekers, and there is speculation she could call an election as soon as this week. [ID:nSGE66B084]

Until now the political risk of announcing a carbon price ahead of an election has been the threat of rising power bills. But two new surveys suggest power bills will rise and energy investment will fall because of a lack of a carbon price.

The lack of an emissions trading scheme and price on carbon would cost the Australian economy and consumers an extra A$2 billion by 2020 due to investment in less energy efficient coal-fired power plants, The Climate Institute estimates.

(Reporting by Ed Davies; Editing by Michael Perry)