|QRC's Pricing Carbon Portal is a source of essential information about the Australian Government’s Clean Energy Future legislation and the implications for Queensland’s minerals and energy sector. |
|The state of play|
|On 10 July 2011 Prime Minister Gillard announced that the Australian Government would move to encourage a reduction in the country’s greenhouse gas emissions under the broad mantle of a ‘carbon price’. The preferred mechanism is a fixed carbon price (or tax) for three-five years before transitioning to an emissions trading scheme (ETS) starting 1 July 2012. |
On 27 September 2011 the QRC urged federal and state parliamentarians to heed the warning of the impact of the proposed carbon tax on the economy and the resources sector.
The Queensland economy stands to lose income of $13 billion over 10 years to 2021-22 from proposed new coal mines that would not go ahead under the new tax. That’s a loss of some 15 percent of the Queensland coal industry’s growth potential over the coming decade, growth which will be taken up by our competitors—such as Indonesia, South Africa and Columbia—none of whom have a carbon tax on coal mining nor plans for one.
The Clean Energy Future package, consisting of 18 Bills, passed the lower house on October 12 2011. The Bills passed the upper house with the support of the Greens on 8 November 2011.
|QRC position on carbon pricing|
|The QRC and its members are committed to striking a balance between taking steps to reduce greenhouse gas emissions while sustaining economic growth and maintaining access to reliable and affordable energy. |
The QRC and the minerals sector believe a measured transition to a low-emissions global economy will require the alignment of three key policy pillars:
|a global agreement for greenhouse gas emission abatement that includes emissions reduction commitments from all major emitting nations|
market-based policy measures that promote the abatement of greenhouse gas emissions at the lowest cost, while minimising adverse social and economic impacts, including on the competitiveness of the internationally-traded sector|
substantial investment in a broad range of low emissions technologies and adaptation measures.|
|Resource sector impact|
|Working closely with the national bodies such as the Minerals Council of Australia and the Australian Coal Association, the QRC has compiled a current ‘state of knowledge’ on how a carbon price would affect the resources and energy sectors. |
The Australian resources sector does NOT support the direction of the Australian Government.
The resource sector has the responsibility to inform people that the carbon tax will reduce business competitiveness, slow economic and employment growth and increase prices while failing to materially cut emissions. We are interested in getting the policy right, not the numbers in the Parliament.
A carbon pricing scheme that fails to include measures to fully preserve the international competitiveness of Australia’s export and import-competing industry during a period of uneven or limited international action will cost jobs, investment and increase the cost of living of all Australians.
An alternative policy approach must recognise that trade-exposed firms cannot pass on carbon costs to customers. Trade-exposed businesses operating in fiercely competitive global markets have no capacity to pass direct or indirect carbon costs on to their customers. Australia should align its approach with that of other nations and ensure that the carbon pricing scheme does not compromise the competitiveness of Australia’s export and import competing industries.