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2011-02-07

Both the Greens and MCA must play positive roles in pricing carbon

Comments on Sid Maher “Greens, miners hit carbon bid from both sides”, 7/02/2011, http://www.theaustralian.com.au/national-affairs/greens-miners-hit-carbon-bid-from-both-sides/story-fn59niix-1226001110919

While the Greens attitude towards the mining industry is wrong and hardly sustainable, given the role of the industry plays in the Australian economy and its contribution to Australians' economic fortune, the MCA also needs to be careful about its tactics.

The MCA should be positively participating in the process of pricing carbon, as opposed to an opposition to it.

What it should do is to ensure that a competitive carbon price that can achieve emissions reduction but does not disadvantage Australian industries in their international positions.

In that regard, it should argue for trade neutrality of carbon pricing. It should also argue for a consideration of the carbon pricing on the proposed new mining profit tax to avoid double hit on the mining industry.

It, however, should not unreasonably ask for subsidies to the industry.

Carbon emissions reduction has been on the agenda for many years. The Kyoto Protocol, an international agreement on emissions reductions, has been in place for more than a decade.

Any industry, or firms should have taken that into account in terms of investment decisions. There is little ground for any of them to ask for subsidies or compensation.

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