“The worst global recession since the Great Depression means we must adapt our climate change measures but not abandon them,” Rudd told reporters. “The start date of the carbon pollution reduction scheme will be delayed one year to commence from July 1, 2011.’

Opposition leader Malcolm Turnbull called the decision a “panic response” to the cricism the scheme has attracted as the global economic recession deepened and big industry pushed back on what it perceives as an overly hefty pollution tax.

“Today’s announcement represents a massive backdown given the way he’s attacked the Opposition for more than a year as we pointed out the flaws in his emissions trading scheme,” Turnbull said.