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Carbon Pollution Reduction Schemes
AMMA recognises
the importance of sustainable development and environmental policies which
maintain Australia’s society, economy and environment. AMMA believes this
policy framework should also be applied in order to maintain existing and
future mining operations, and acknowledges that Australia’s unique
circumstances, including a large land area and resources rich in fossil
fuels, will make the reduction of emissions difficult.
Objectives
The implementation
of a Carbon Pollution Reduction Scheme (CPRS) and related domestic policy
must minimise costs and provide suitable measures to ensure international
competitiveness of trade exposed industries such as the resources sector
and allied industries are not disadvantaged. Any costs are likely to be
exacerbated where a CPRS operates with restrictive targets, and trade
competitors remain outside of such arrangements.
Accordingly, AMMA
believes the adoption of any policy should be administratively simple, and:
- Provide a
measured transition to a low emissions economy and not be implemented at
the expense of Australian jobs
- Maintain the
competitiveness and efficiency of Australian industry at all costs
- Be aligned with
the development of a global protocol to ensure Australia’s economy is not
negatively affected
- Ensure Australia assumes only its fair share of the international responsibility for the reduction
of greenhouse gas emissions
- Include
commitments from large emitters such as India, the USA and China
Appropriate Strategies
Achievement of
these goals is dependent on government policy and a regulatory framework
conducive to realistic goals being met. Any environmental policy such as a
CPRS must be framed around a constructive dialogue between industry and
government.
Accordingly, AMMA
believes such policy should be based on:
- Environmental
standards and goals appropriate to Australia’s own circumstances and
industrial and natural base
- Scientific
assessments, research and reputable data
- Maximum cooperation
and consultation among appropriate government agencies and industry and
community representatives
- A phased approach
to the ‘auctioning’ of carbon permits, and ultimately a commitment to both
equitability and affordability for industry over the longer term
- Realistic
commitments to international greenhouse gas reduction
AMMA’s concerns
AMMA is generally
concerned that the implementation of the Carbon Pollution Reduction
Scheme Bill 2009 as proposed, without sufficient consultation and
agreement of industry representatives, will risk reducing the productivity
of Australia’s resources sector, a major contributor to Australia’s Gross Domestic Product. This would ultimately have negative flow on effects for
the general Australian economy.
For example, research produced by Concept
Economics for the Minerals Council of Australia shows that 23,510 jobs will
be lost in the minerals industry by 2020 under the CPRS and 66,480 jobs by
2030. Any scheme’s environmental effectiveness must be evaluated in terms
of the economic burden placed on industry.
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