MCA proposes new carbon pricing scheme
The Minerals Council of Australia has outlined its proposal for a new carbon-pricing scheme to be rolled out in Australia, labeling the current Carbon Pollution Reduction Scheme (CPRS) as ‘flawed’ and ‘the wrong approach’.
While the MCA has backed the formation of a carbon-trading scheme (CTS), it has strongly advocated the formation of a ‘global agreement that includes concerted and comparable action by all major emitters’.
In a recently released document, the council has proposed ‘a measured transition to carbon pricing, with cost burdens comparable with those facing our competitors, and the development and deployment of low emissions technologies.’ The document highlighted lack of action by Australia’s leading trade partners, such as Japan, Canada and the USA.
The minerals sector faces combined carbon costs nearing $30 billion (in current dollars) over the period to 2020, which the MCA believes will threaten a current investment pipeline worth $140 billion, and directly counteract the aims of the Government.
"On the Government’s own modelling, output in key minerals sector will be slashed, while investment in coal mining will fall by 13 per cent. The beneficiaries will be other nations - not a single Top 4 competitor/producer in any of 13 key minerals commodities has a functioning carbon pricing scheme."
The council defended Australia’s emissions track record saying ‘Australian emissions have grown by just 3 per cent since 1990 despite recording the strongest economic and population growth amongst developed nations over this period. ‘
The MCA report criticised the Government’s approach, saying a ‘CPRS-style scheme will fail to meet the principles developed by the Multi Party Committee on Climate Change’ and that current policies in place contradict the Government’s own strategy of maximising the opportunities of the ‘Asian Century’.
The council's own proposed methods for dealing with emissions trading and reduction were outlined as follows:
- Australia should follow other nations and adopt a phased approach to the introduction of auctioning of permits.
- a global agreement that includes concerted and comparable action by all major emitters
- a measured transition to carbon pricing, with cost burdens comparable with those facing our competitors, and
- the development and deployment of low emissions technologies.
The MCA's proposal for a new carbon pricing scheme can be found here