Dec. 3 (Bloomberg) -- The Australian government ratified the Kyoto Protocol, leaving the U.S. as the only major developed nation that hasn't joined the accord aimed at reducing emissions of greenhouse gases blamed for global warming.

The endorsement was approved by the first executive council meeting of Australia's new Labor government this morning, Prime Minister Kevin Rudd said in a statement on the Labor Party's Web site. Australia will become a full member of the Kyoto Protocol by the end of March, he said.

Rudd reversed the policy of former Liberal Prime Minister John Howard, ousted in the Nov. 24 election, who argued that ratifying the accord would cut economic growth and cost jobs. United Nations-sponsored talks on a new emissions treaty started today in Bali, where the U.S. is set to continue President George W. Bush's opposition to mandatory emissions curbs.

``Australia's change makes the U.S. all the more isolated, we've already seen a change in position in U.S. policy in the last six months,'' said Martijn Wilder, a partner specializing in climate change at law firm Baker & McKenzie in Sydney. The U.S. still won't join Kyoto, yet is appearing increasingly ``prepared to do something'' within an international accord to address climate change, he said.

Decision Applauded

News of Australia joining Kyoto was met with enthusiastic applause at today's opening session of the UN climate change meeting in Bali.

The ``emotional and spontaneous'' reaction of the Bali delegates reflected ``appreciation of the courage of Australia to take this dramatically different position,'' Yvo de Boer, executive secretary of the United Nations Framework Convention on Climate Change, told reporters today.

The number of industrialized nations who have refused to ratify Kyoto ``is now reduced in half by size,'' de Boer said, referring to the U.S.'s sole position as the only developed country not participating in the climate pact.

Australia's decision will put pressure on Bush to ``become serious'' about negotiating a new agreement to replace Kyoto after the climate accord expires in 2012, said Arthur Runge- Metzger, a senior European Commission official, who oversees climate policy.

Australia's target under the Kyoto accord is to limit growth in greenhouse gas emissions to an 8 percent increase above 1990 levels over the 2008-2012 period. The country is ``tracking within 1 percentage point'' of meeting that target, then-environment minister Malcolm Turnbull said in May. Australia is one of only three industrialized nations signed up to the accord that are allowed to increase emissions from 1990 levels by 2008-2012.

Emissions Trading

The Labor government will do ``everything in its power'' to help the nation meet its Kyoto obligations, Rudd said. This will include setting a target to cut emissions by 60 percent on 2000 levels by 2050, starting a national emissions trading system by 2020 and setting a target for 20 percent of electricity to come from renewable sources such as the sun and wind by 2020, he said.

Australia's total greenhouse gas emissions were 559.1 million metric tons in 2005, unchanged from the previous year, the government said May 2. Emissions from power generation and transport rose by 1.3 percent from a year earlier.

Ratifying the Kyoto Protocol, which entered into force on Feb. 16, 2005, will allow Australian companies to participate in the international trading regime set up under the accord and to invest in two types of project-based emissions reductions systems, in developed and developing countries, Freehills, a law firm, said Nov. 27.

Forestry, Waste

Investment opportunities will immediately open up for companies in industries including forestry, waste management and coal-seam gas production, said Andrew Richards, manager, corporate and government, at Pacific Hydro Ltd., the Australian renewable energy producer owned by pension funds manager Industry Funds Management.

``We'll be able to partner with other ratifying countries to develop different types of abatement activity in Australia and overseas,'' Melbourne-based Richards said in a telephone interview. ``That's the new significant area of business that will immediately open up to us.''

It's important for Australia to look beyond its Kyoto target, which is an increase from 1990 levels, and start cutting emissions, said John Connor, chief executive of the Sydney-based Climate Institute, an independent advisory group on climate change.

``We do need to get cracking now, our pollution from our energy sector has been spiraling,'' Connor told reporters. ``Certainly the Kyoto target can be reached. But more importantly, that's an increase in greenhouse pollution: When will Australia be reversing our rise in greenhouse pollution? That's the timeline we're looking for and that should be by 2012.''

Bali Team

Prime Minister Rudd, Minister for Climate Change and Water Penny Wong and Environment Minister Peter Garrett will represent Australia at Bali.

Australia's ratification of the Kyoto Protocol takes effect 90 days after the so-called instrument of ratification is received by the UN.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net

Last Updated: December 3, 2007 05:50 EST