Australian carbon tax gets green light

Enviromine

Julia Gillard, second from right, Greg Combet, Australia's minister for climate change, third from right, and Wayne Swan, Australia's treasurer, fourth from right, are photographed as they leave a news conference on the government's climate change plan at Parliament House, in Canberra, Australia. Photo: Bloomberg

Publishing Date: 11 Jul 2011 10:19am GMT
Author: Mining, People and the Environment

Environmental Change Legal and Legislation Pollution & Waste management

Australia’s government has revealed the details of its new carbon tax which will take effect from July next year.

On July 10, Prime Minister Julia Gillard announced that companies would be charged a tax of A$23/t (US$25/t) of carbon produced.

The tax is expected to affect at least 500 companies operating in the country and producing CO₂ above a threshold of 25,000t/y.

The government said that trade-exposed businesses would be compensated to allow them to remain internationally competitive, but the tax has been met with concern by the minerals sector, which contributes at least 8% to Australia’s GDP, according to Rio Tinto.

Gina Rinehart, expected to become the world’s richest person, told Australian media that the tax would make it difficult for Australia’s companies to compete with Asian markets.

The Chamber of Minerals and Energy of Western Australia Acting Director James Edwards said: “Australian and West Australian companies now face significant costs under this tax that our trading competitors don’t”.

Rio Tinto also said in a statement that it was “disappointed” with the tax.

“We are deeply concerned the proposed carbon tax fails to shield Australia's export sector and leaves it at a disadvantage compared to international competitors,” managing director Australia David Peever said.

The government said it aims to cut 120Mt of CO₂ pollution by 2020.