The most appropriate response by the Australian Government to climate change must include the following:
- Global consistency - the Australian Government should continue to advocate for a globally consistent approach to pricing carbon.
- No disadvantage - maintaining the competitiveness of Australian export and import competing industry in the absence of a global approach (especially cement's key competitors in Asia)
- Target least cost abatement - there should be a single, national policy instrument that targets least cost abatement strategies. High cost, low abatement programs should be phased out.
- Exclude process emissions - it is fruitless for Government to penalise a chemical process that cannot be altered in the production process.
1. Climate Change is a Global Issue - the appropriate response must be consistent globally.
With 85 per cent of emissions being outside the Kyoto Convention, it is critical that countries not facing a carbon price receive an unfair advantage in the global market place.
2. Australia’s climate change policy must not expose the Australian cement manufacturers to costs not faced by their international competitors.
Our competitors are mainly from Asia – none of which face a nation-wide carbon price.
3. All Australian sectors must be treated equally....Australian climate change policy must be applied in a consistent manner across jurisdictions.
Leaving one sector out of the policy increases the burden on other sectors. The Australian Government’s Clean Energy Future Policy only covers approximately 60 per cent of Australian emissions. This means Australian cement manufacturers, and other industries included in Australia’s climate change policy, have to carry an unfair burden.
4. Climate change policy directed at Australian industry should be singular in nature.
There is no reason to have secondary policies that do not target least cost abatement.
5. Australian climate policy should appropriately credit the considerable work already undertaken in many sectors to improve energy efficiency and reduce emissions.
The Australian cement industry has reduced its emissions by over 30% since 1990 as a direct result of investing in latest kiln technology, improvements in blending technology and increased use of by-products and mineral additions as well as utilising alternative fuels.
6. Process emissions should be excluded from any climate change policy.
It is fruitless for Government to penalise a chemical process that cannot be altered in the production process.
7. Any climate change policy should be stable, predictable and avoid complexity to help minimise investment uncertainty.
Investment in cement manufacturing is a long-term commitment and new investment will not occur unless there is a level of certainty around Australia’s carbon policy.
8. Climate change policy should take into consideration the size and scale of individual Australian industries to ensure they are not inequitably rewarded/ penalised.
For example, as CO2 emissions differ between industries, consideration must be given to ensure that smaller industries with larger CO2 profiles are not unduly penalised or rewarded.
Cement Industry Federation