Over the last two decades, and in the absence of an emissions trading scheme (ETS), the Australian cement industry has demonstrated a high uptake of best available technology while remaining internationally price-competitive.
One of the more significant challenges for an ETS, along with setting realistic targets, is to ensure Australian manufacturers continue to maintain a competitive position with our neighbours, particularly those that do not share our high standard of environmental performance.
Under the current market circumstances an ETS will not lead to investment in further kiln capacity, nor a reduction in CO2 emissions. Instead we are likely to see import substitution which may not be as 'emissions efficient' as Australia and will reduce employment opportunities in the Australian cement industry.
The CIF has taken an active role in working with the Australian Government to shape Australia's policies on climate change. Managing the business risks and opportunities within a carbon constrained economy is a major challenge faced by the industry and the community.
The CIF will continue to work with Government in developing climate change policy that supports the competitiveness of Australian producers while meeting environmental goals.