THE potential impact of a carbon price on Western Australian businesses was highlighted by the release of new data last week showing the biggest emitters of greenhouse gases.
THE potential impact of a carbon price on Western Australian businesses was highlighted by the release of new data last week showing the biggest emitters of greenhouse gases.
Woodside Petroleum, Rio Tinto and Alcoa were among the largest emitters, and they will be at the forefront of the debate over exactly what type of carbon price scheme is introduced in Australia.
The federal government has announced the broad framework for a carbon price scheme, which will start on July 1 next year with a fixed price for three to five years before converting to a flexible price cap-and-trade scheme.
Key details, including the price to be imposed and the compensation to be paid to affected industries, are yet to be finalised.
The Department of Climate Change and Energy Efficiency report showed that liquefied natural gas (LNG) producer Woodside Petroleum would be one of the hardest hit if it had to carry the cost of a carbon price.
Assuming the widely speculated price of $25 per tonne was introduced, Woodside’s emissions of 8.4 million tonnes would attract a bill of almost $211 million.
The Australian Petroleum Products & Exploration Association supports a market-based policy on carbon price as long as it encourages, and not impedes, the development of Australia’s gas resources.
“Studies by the CSIRO and Worley Parsons show that for every tonne of greenhouse gases associated with the production of LNG in Australia, up to 9.5 tonnes are avoided in customer countries when it is used in place of coal for electricity generation,” APPEA chief executive Belinda Robinson said.
NSW power companies Macquarie Generation and Delta Electricity were the largest greenhouse gas emitters in the country, with almost 23.6mt from the former and almost 20.7mt from the latter.
Of the companies based in WA or with large operations in the state, Rio Tinto emitted the most greenhouse gases last year. Based on the $25/t assumption, it would be up for a bill of $434 million.
Aluminium producer Alcoa was the second biggest greenhouse gas emitter and would pay $414 million, based on last year’s figures.
Managing director Alan Cransberg said Alcoa supported a response to climate change but stressed the importance of maintaining Australia’s competitiveness in the world market, particularly for the many regional communities that relied on the industry.
Other big emitters with assets in the state include power generators Verve Energy and Alinta Energy, oil and gas producers Apache Energy and Santos, mining giant and alumina producer BHP Billiton, and Burrup Fertilisers.
Wesfarmers is also a large emitter, primarily as a result of its mining operations.
Chamber of Commerce and Industry WA chief executive James Pearson said the CCI supported a market-based scheme on greenhouse gas emissions but needed more detail, particularly the starting price for carbon, to determine the impact on WA businesses.
The Business Council of Australia acting chief executive Maria Tarrant said policies should ensure Australia’s emissions-intensive and trade-exposed industries were not disadvantaged in the absence of a global price on carbon.
