THE proposed emissions trading scheme (ETS) will expose Australian mining companies to some of the highest carbon costs in the world, according to the Minerals Council of Australia (MCA).
MCA deputy CEO, Brendan Pearson, says the Federal Government’s ETS scheme will create a $5bn carbon burden to the nation’s coal export sector in its first five years of implementation.
"Over the same period, the gold sector will take a $700 million hit to its bottom line. None of their competitors will face any such costs," he said
The ETS scheme aims to cut emissions by 10% before 2020 in a bid to reduce emissions and address climate change. The initiative, to be introduced in 2010, will enforce payments and place limits on the amount of pollutants heavy emitting companies can release to the atmosphere.
As the economic market and financial crisis bites global mining companies in recent months, the imposition of further costs are set to have an adverse impact on the resources sector.
"With the global financial crisis impacting heavily on Australia, the Federal Government must ensure that its own policy plans don't make the situation worse,” Pearson said.
However, Climate Change Minister, Penny Wong, says the government will not defer the emissions trading scheme and claims the department is “working hard” to support Australian jobs
"Delaying action on climate change is going to cost us more and simply handball the problem to people down the track, to our children and grandchildren,” she said.
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