'The new policy has made TRUenergy's profit outlook more predictable, facilitating its potential listing in 2012,' Citigroup Global Markets analyst Pierre Lau said.

A CLP spokeswoman did not rule out the possible listing of TRUenergy yesterday, saying it was one of the options the group would consider for its local units when raising funds.

Some analysts said the announcement of the carbon policy removed questions hanging over TRUenergy. As a result of the proposed plan to cut greenhouse gases, TRUenergy stands to pocket cash compensation of US$250 million in the first year of the five-year transition period.

The utility will also be eligible for 10.42 million carbon trading permits annually for four years, under a carbon trading scheme, from 2013-2014.

TRUenergy, one of Australia's largest integrated electricity firms with 2.75 million customers, may receive compensation for closing its 1,480-megawatt coal-fired power plant in Victoria, pending negotiations on the plant's fate. It is one of the three coal-fired plants that qualify for closure and compensation.

Australia, which burns coal to generate more than 80 per cent of its electricity, plans to impose a price on greenhouse gas pollution starting next July in preparation for a carbon trading system that could begin as early as 2015.

The federal government believes a cap-and-trade carbon programme will give power plants, factories and other polluters a strong incentive to cut emissions.

The proposed transitional package is awaiting the legislative process, which is due next month. If it is passed by the legislature, it can be implemented in September.

CLP shares rose HK$1.05, or 1.55 per cent, to HK$68.55 yesterday.