In an interview on the SBS Dateline programme, UK economist Lord Nicholas Stern, said that there are "very big international implications" in what carbon policy Austrlalia adopts.

Lord Stern pointed out that Australians emit "over 20 tonnes of CO2-equivalent per capita, compared with Europe with around 10, 11 or 12, China around 5, India below 2 and much of sub-Saharan Africa below 1 tonne per capita. I think the world will ask, ‘If Australia – with all its advantages – can’t cut back strongly, then how can anybody expect us to cut back strongly?’"

In contrast to Australia, which has a target of only a 5% reduction in greenhouse emissions by 2020, the UK now expects to have cut its greenhouse gas emissions by 23 percent (compared to 1990) by next year, and is targeting a 34% cut by 2020 and 80% by 2050. The new US Administration is also commited to an 80% cut by 2050.

"There is no way that Australia could be interpreted as going it alone by moving forward and now. That is absolutely fundamental." said Lord Stern.

He added that "we must recognise the great advantages to acting early. The low-carbon technologies are going to be the technological and innovation drivers of the next two or three decades. High carbon growth has no future. On the other hand, there is going to be a great demand for the technologies which Australia is in a very good position to produce."

Australian Prime Minister, Kevin Rudd, has announced a plan to reduce greenhouse gas emissions by as little as 5 percent by the year 2020 – far less than the 25 percent cut sought be environmentalists.

The White Paper released today says that Australia will cut its greenhouse gas emissions by 5% of 2000 levels by 2020 but could make a cut of up to 15% if other countries also sign up to stronger reductions. The commitment falls well below the 25 to 40% target for 2020 recommended by the United Nations for developed economies and the European Union’s commitment to cut emissions by 20% of 1990 levels by 2020 and to increase that to 30% if a global agreement is reached.

The White Paper also contains details of the governments emission trading scheme to start in 2010.

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