The Australian federal government has announced its decision to scrap floor price for carbon permits under the new trading scheme that will be rolled out in 2015.

Climate Change Minister Greg Combet had said on Tuesday that the country has decided to scrap the floor price for the carbon trading scheme that will be introduced in 2015. The government has said that it will link is carbon scheme with the European carbon market from July 1, 2015.

The government said that it has decided to scrap the $15 floor price on Tuesday under the carbon trading scheme that is expected to be implemented in 2015. Many believe that the revenues from the trading could be reduced as the international prices fall.

Combet has affirmed that the budget revenues will not be reduced is backing the Treasury, which predicts an international carbon price of $29 a tonne in 2015-16 compared to $10 a tonne at present. The linking of the world's two largest Emissions Trading Systems (ETS) has increased hopes for more systems being linked to the European system.

Opposition climate change spokesman Greg Hunt said that the latest decision by the government shows chaos and confusion' within the government.