Industry organisations urge against ambitious carbon reduction goals

Industry lobby group Manufacturing Australia has cautioned against
Australia setting ambitious long-term greenhouse emission reduction targets.

The Australian Financial Review reports that the group’s chairman Mark
Chellew also backed the federal government’s Direct Action plan over the dumped
carbon tax, claiming the latter was sending jobs overseas.

“To
go for such large targets if we aren’t seeing similar moves offshore would be
unwise,” Chellew told The AFR.

“Most
Australians agree we have a problem with climate change but that doesn’t mean
we should be exporting jobs offshore.”

Brickworks was also critical of a carbon tax as a way to deal with
emissions. The company (also a member of Manufacturing Australia), said that it
is only paying half as much under Direct Action as it was under the carbon tax. Under DA, it pays about about $13.95 per tonne of carbon dioxide output.

Last week the Climate Change Authority recommended Australia aim to
reduce its greenhouse emissions by 30 per cent by 2025.

The Australian Industry Group, like Manufacturing Australia, has highlighted
what it believes will be the economic cost of emissions reductions. It told a
taskforce that matching the US’s goal of reducing emissions by 26 per cent
compared to 2005 levels would cost $25 billion, The Australian reports.

“Purchasing abatement post-2020 in volumes consistent with any
of the indicative targets considered above would require, at a minimum, very
substantial new budget commitments, which would likely grow strongly,” the Ai Group’s submission to a taskforce on Australia’s emissions reduction target reads.