Xstrata has called on the new minority government to tread softly on climate change policy, saying the mining giant would oppose a cap on carbon emissions until other countries make similar moves.
Climate policy could soon be back on the political agenda after the two independents to side with Labor, Rob Oakeshott and Tony Windsor, both nominated cutting carbon as key factors in their decisions.
Xstrata Coal chief executive Peter Freyberg yesterday predicted climate change would be important for the newly elected government, which he urged to engage with the mining industry.
But in a sign of the stiff resistance likely to meet any plans for deep emission cuts, Mr Freyberg argued capping emissions would hurt the nation’s coal exporters.
”Any cap that is applied unilaterally without considering what’s happening in the rest of the world … will probably and possibly reduce emissions here but at a cost of losing jobs and losing industries offshore,” Mr Freyberg said.
The comments, made before it emerged Labor would form government, contrast with power industry demands for a carbon price as soon as possible to provide greater certainty.
