Business News
CPRS still needs work: Alcoa
Thursday 06. August 2009 - Alcoas Manager of Carbon Strategy Tim McAuliffe says now is the time for the Federal Government and Opposition to sit down at the negotiating table to strike the right balance within the proposed Carbon Pollution Reduction Scheme.
Addressing more than 150 business leaders during a University of Western Australia forum in Perth yesterday, Mr McAuliffe reiterated that Australia needs a scheme that responds to the needs of climate change while ensuring jobs and industry remain in the country.
“The Government and the Opposition now have the opportunity to get the scheme right – Australia can provide leadership on climate change while protecting jobs, vital industries and the communities that rely on their presence,” he said.
“Emissions trading is a key plank in responding to the challenge of climate change, but the White Paper version of the CPRS represents a significant risk to aluminium industry jobs while overseas competitors do not face comparable carbon costs.
“In its current form, industries such as alumina and aluminium would be at a substantial international competitiveness disadvantage and businesses may simply be driven offshore to countries with no emissions trading.
“If that happens, the emissions wont vanish, theyll just move to another part of the world and ultimately the only thing that would achieve is job losses in Australia.
Mr McAuliffe said striking the right balance includes emissions-intensive trade-exposed (EITE) industries receiving at least 90% permit assistance. He added that its vital the permit assistance does not erode until international competitors face a comparable carbon cost and theres a level emissions trading playing field globally.
“Our industry is not after a free ride – with 90% initial permit allocation, it will still cost Alcoa around $50M per annum by year two of the scheme.
“Its critical that changes are also made to deal with the cost of indirect emissions (the Electricity Allocation Factor). Under the current proposal, Victorian industries will be penalised because of the limited energy supply options that are currently available in that State.”
Alcoa supports the introduction of a CPRS that delivers greenhouse reductions and does not compromise Australian jobs.