Australia passes Clean Energy Bill

Enviromine

Chamber of Minerals and Energy of Western Australia

Publishing Date: 08 Nov 2011 5:23pm GMT
Author: Mining, People and the Environment

Environmental Change Legal and Legislation Pollution & Waste management

Australia's senate has passed the country's controversial Clean Energy Bill by a vote of 36 to 32.

The bill, which will raise a carbon tax on emitters from July next year, has been widely contested by the mining sector.

The tax, which will begin at a level of A$23/t of emissions for three years (before moving to flexible pricing in 2015) is expected to reduce Australia's emissions by 160Mt/y by 2020.

Mining companies operating in Australia have said, however, that it will impact the country's competitiveness, particularly for its coal production.

As the bill was passed by Australia's lower house in October, Reg Howard-Smith, chief executive of the Chamber of Minerals and Energy of Western Australia, described the tax as “ideology taking over from common sense”.

He said: “I’m sure our global competitors are celebrating today as Australia shoots itself in the foot.”

Industry reprehensive groups, such as the Australian Coal Association, have vowed to fight for a fairer tax.