Emitters’ lobby calls for cull of climate programs with carbon tax

Australian business wants a phase-out of existing climate programs, the right to buy cheaper pollution permits overseas and much more policy detail before it considers supporting the Gillard government’s proposed carbon tax.

A policy lobby group representing mining, energy and manufacturing companies responsible for 90 per cent of Australian emissions also says that unless the government provides clear details of when and under what conditions Australia would move from a carbon tax to an emissions trading scheme, it will fail in its central goal of providing business with investment certainty.

The Australian Greenhouse Industry Network called on the government to phase out existing schemes as it introduces an economy-wide carbon price, including the renewable energy target, which the network calculates will cost electricity users $1200 million this year, or more than $100 a tonne of carbon abated - about five times more than the possible starting price for a carbon tax.

The network - which represents industries including petroleum, aluminium, coal, mining and electricity generation - also insisted that companies should be able to buy international permits from the start of the scheme, something the Climate Change Minister, Greg Combet, told the Herald last month would not be considered. Mr Combet said yesterday the government was also ”committed” to the renewable energy target.

The network’s chief executive, Michael Hitchens, told the Herald the companies in his network ”broadly support a market approach because an economy-wide price has the potential to be the least cost way of reducing emissions … but only if the government gets the details right”.

Mr Combet defended the government’s decision to publish a framework for its carbon tax without details of how much people and industries would pay, saying the point was to allow groups like the network to have their say.

”People can’t have it both ways. With the resource super profits tax the government did the detailed work and then released the policy and was criticised for insufficient consultation. This time we have put out a policy framework and asked for feedback and we are criticised for not announcing all the details … stakeholders need to know our policy intentions so they can provide their input.”

The Opposition Leader, Tony Abbott, has said he will address the ”no carbon tax” rally in Canberra this month - an event whose organiser, Jaques Laxale, said was attracting support from climate sceptics and people who were simply opposed to the government’s proposed tax.

The No Carbon Tax website now hosts climate sceptic blogs, links to climate sceptic websites and an online ”Climate Skeptic Shop” where people can buy T-shirts, hats and mugs proclaiming they are a ”climate skeptic”.

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