Businesses heads warn overly ambitious emission reduction targets could cause economic harm as unions push for re-imposition of carbon tax
In a letter to the Productivity Commission's five pillars inquiry, which will compile the agenda of the Albanese government's reform roundtable, the Australian Chamber of Commerce and Industry reiterated the 2035 climate targets needed to be grounded in reality.
Prime Minister Anthony Albanese is reportedly weighing a 65 – 75 per cent 2035 emission reduction target, in line with Climate Change Authority advice.
The government is not expected to announce Australia's 2035 climate target until at least September ahead of the COP 30 conference in Brazil in November.
However, chief executive of the Australian Chamber of Commerce and Industry Andrew McKellar said the government should refrain from pursuing a 2035 emission reduction target above 65 per cent, and stated that even the 2030 target of 43 per cent was "increasingly challenging."
"We will only support something that's realistic, that's affordable for the Australian economy," Mr McKellar told Sky News on Tuesday.
ACCI's submission to the Productivity Commission further outlined that a 2035 federal target over 65 per cent would risk the viability of small businesses and industry".
"We have got to be realistic about the contribution that we can make. There's no point driving our economy into the ground," Mr McKellar added.
Mr McKellar, who's body represents over 350,000 businesses nationwide, told The Australian anything in the 65 to 75 per cent range would be 'exceedingly challenging for the Australian economy".
Despite the ACCI supporting the Albanese government's 43 per cent 2030 climate target, it has consistently pushed for market-oriented solutions and lobbied for the government to create the right environment to bolster private investment.
The submission added that 'were the government to set a more ambitious 2035 NDC (Nationally Determined Contribution) ACCI would be greatly concerned about the impact on the productivity, competitiveness and viability of Australian businesses, as well as the cost to the taxpayer'.
Meanwhile, the Australian Council of Trade Union used their submission to the Productivity Commission ahead of the economic forum to call on the government to impose a Julia Gillard-style, economy wide carbon tax.
The ACTU said a far-reaching carbon tax was one of the best measures the government could take to ensure Australia was meeting its international climate obligations and stated Ms Gillard's carbon pricing mechanism spurred economic growth while limiting emissions.
The peak union body also tore into the Albanese government's safeguard mechanism, which sets limits on the emissions of high polluting facilities and said the policy was ineffective and lacked teeth.
'The Productivity Commission's investigation of means to reduce the cost of meeting carbon targets should proceed from these premises, with the goal of internalising the externalities of carbon pollution in line with the principles of carbon pricing,' the ACTU's submission read.
The ACTU submission further urged the Productivity Commission to examine whether there were existing federal government fossil fuel subsidies that could be abolished.
The Climate Change Authority, chaired by former NSW Liberal MP Matt Kean, has reportedly not finalised its advice to the Albanese government on the 2035 emission reduction target and is still assessing feedback from a range of groups and bodies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
6 hours ago
- Sky News AU
‘We need to stand firm': Anthony Albanese under fire amid China visit
Liberal MP Aaron Violi discusses Prime Minister Anthony Albanese's conduct on his visit to China relating to issues like the Port of Darwin and Chinese live-fire exercises off the coast of Australia earlier this year. 'There are significant advantages to our relationship with China … there are benefits economically,' Mr Violi told Sky News host Danica De Giorgio. 'We should never sell out our country, or our national interests, and we need to stand firm. 'It appears the Prime Minister has not done that when it comes to the Port of Darwin.'
Perth Now
7 hours ago
- Perth Now
‘Reliable': China's big call on Albo trip
Anthony Albanese has landed back in Australia after six days abroad touting Australia's trade and tourism offerings in China. The Prime Minister has been keen to reframe the Australia-China relationship in friendlier terms, steering away from the increasingly militaristic tone to focus on a peaceful coexistence ensured through deeper economic interdependency. 'Overwhelmingly, what we discuss as moving forward is issues of today and tomorrow, rather than the past,' Mr Albanese told reporters on his final day in Chengdu, a major research hub in western China. 'What I speak about is the potential that's there to grow the relationship, to develop further economic ties. Anthony Albanese in Shanghai with fiancé Jodie Haydon and Socceroos great turned Shanghai Port FC coach Kevin Muscat. NewsWire / Joseph Olbrycht-Palmer Credit: News Corp Australia 'We – of course, as I've said repeatedly – we co-operate where we can, we disagree where we must, but we don't want those disagreements to define our relationship either. 'So what we do is talk about how we can co-operate further in the future.' His message has gone down well in Beijing, with Chinese state media eagerly lapping up every photo op and flattering remark Mr Albanese made. Mr Albanese's message has seemingly gone down well with Beijing. Supplied/PMO Credit: Supplied Chinese state media had only good things to say after the two leaders met. Supplied/PMO Credit: Supplied The Global Times is a leading English-language propaganda mouthpiece for the Chinese Communist Party (CCP). Doing its best to imitate a Western-style publication, it is often used to circulate the CCP's various pet peeves and routinely takes scathing shots at Australia. But the Chinese government tabloid has had only good things to say after Mr Albanese met with Xi Jinping and other party top brass in the middle of the trip. 'The most important insight this gives us is that treating each other as equals, seeking common ground while shelving differences, and engaging in mutually beneficial co-operation serve the fundamental interests of both China and Australia and the two peoples,' it cited the Chinese President as saying in his remarks at the top of the big meet — a striking similarity to Mr Albanese's own words. (L-R) Mr Albanese with Tourism Australia's Robin Mack, vice president Edison Chen, and CEO Jane Sun. Joseph Olbrycht-Palmer / NewsWire Credit: News Corp Australia More tellingly, it summed up the state visit as a revival of 'Australia's independent China policy', speaking to the elephant in the room. Donald Trump has made clear China is the main game when it comes to the foreign policy focus of his second administration. Its exploding middle class and relentless growth is evidence of an economic model that could rival the US. Similarly, China's rapid expansion of its nuclear and conventional arsenals has raised questions about how it might use its might, sparking warnings from Washington that Mr Xi is eyeing an invasion of Taiwan. It is with that concern that US Defence Secretary Pete Hegseth demanded the Albanese government hike Australia's defence spending to at least 3.5 per cent — a request Mr Albanese has rejected even as his deputy and defence minister, Richard Marles, said China's military build-up is driving 'security anxiety' in Canberra. Brushing off the Trump administration's warnings as needless warmongering, the resistance to the US defence demand has not gone unnoticed in Beijing, which has eagerly seized on global trade uncertainty driven by tariffs. In an opinion piece on Thursday, the Global Times said Mr Albanese's 'trip has come at a time of global turmoil instigated by the US'. 'The prime minister's critics are accusing him of prioritising the China relationship over the US relationship, but this is a misrepresentation,' it read. 'The simple reality is that China is a reliable partner.' The piece went on to say 'Australia's relationship with the US has deteriorated' due to tariffs imposed 'despite Australia being the US' most reliable ally'. Mr Albanese met with China's President Xi Jinping on Tuesday. Source - PMO Credit: Supplied Mr Albanese visits The Great Wall of China with his fiance Jodie Haydon. NewsWire / Joseph Olbrycht-Palmer Credit: NewsWire 'The contrast between China's steady reliability and the US' erratic demands is being noticed by the Australian people – opinion polls in Australia show falling confidence in the US and rising confidence in China,' it claimed. Throughout the trip, Mr Albanese has leaned heavily on his mantra of co-operating with China where possible and disagreeing where necessary, making clear chasmic differences remain between Canberra and Beijing. But his messaging from the glitz of central Shanghai, to the Great Hall of the People in Beijing, and the panda breeding capital of Chengdu, is that peace through trade and people-to-people ties are the best ways to navigate the challenges in the relationship. It is not a new approach — the EU took it with post-Soviet Russia and was blindsided after the 2022 invasion of Ukraine. Whether Mr Albanese's China push will make Australia vulnerable down the line will be a matter for future generations.
News.com.au
8 hours ago
- News.com.au
China boasts ‘reliable' partner amid Trump turmoil after PM's trip
Anthony Albanese has landed back in Australia after six days abroad touting Australia's trade and tourism offerings in China. The Prime Minister has been keen to reframe the Australia-China relationship in friendlier terms, steering away from the increasingly militaristic tone to focus on a peaceful coexistence ensured through deeper economic interdependency. 'Overwhelmingly, what we discuss as moving forward is issues of today and tomorrow, rather than the past,' Mr Albanese told reporters on his final day in Chengdu, a major research hub in western China. 'What I speak about is the potential that's there to grow the relationship, to develop further economic ties. 'We – of course, as I've said repeatedly – we co-operate where we can, we disagree where we must, but we don't want those disagreements to define our relationship either. 'So what we do is talk about how we can co-operate further in the future.' His message has gone down well in Beijing, with Chinese state media eagerly lapping up every photo op and flattering remark Mr Albanese made. The Global Times is a leading English-language propaganda mouthpiece for the Chinese Communist Party (CCP). Doing its best to imitate a Western-style publication, it is often used to circulate the CCP's various pet peeves and routinely takes scathing shots at Australia. But the Chinese government tabloid has had only good things to say after Mr Albanese met with Xi Jinping and other party top brass in the middle of the trip. 'The most important insight this gives us is that treating each other as equals, seeking common ground while shelving differences, and engaging in mutually beneficial co-operation serve the fundamental interests of both China and Australia and the two peoples,' it cited the Chinese President as saying in his remarks at the top of the big meet — a striking similarity to Mr Albanese's own words. More tellingly, it summed up the state visit as a revival of 'Australia's independent China policy', speaking to the elephant in the room. Donald Trump has made clear China is the main game when it comes to the foreign policy focus of his second administration. Its exploding middle class and relentless growth is evidence of an economic model that could rival the US. Similarly, China's rapid expansion of its nuclear and conventional arsenals has raised questions about how it might use its might, sparking warnings from Washington that Mr Xi is eyeing an invasion of Taiwan. It is with that concern that US Defence Secretary Pete Hegseth demanded the Albanese government hike Australia's defence spending to at least 3.5 per cent — a request Mr Albanese has rejected even as his deputy and defence minister, Richard Marles, said China's military build-up is driving 'security anxiety' in Canberra. Brushing off the Trump administration's warnings as needless warmongering, the resistance to the US defence demand has not gone unnoticed in Beijing, which has eagerly seized on global trade uncertainty driven by tariffs. In an opinion piece on Thursday, the Global Times said Mr Albanese's 'trip has come at a time of global turmoil instigated by the US'. 'The prime minister's critics are accusing him of prioritising the China relationship over the US relationship, but this is a misrepresentation,' it read. 'The simple reality is that China is a reliable partner.' The piece went on to say 'Australia's relationship with the US has deteriorated' due to tariffs imposed 'despite Australia being the US' most reliable ally'. 'The contrast between China's steady reliability and the US' erratic demands is being noticed by the Australian people – opinion polls in Australia show falling confidence in the US and rising confidence in China,' it claimed. Throughout the trip, Mr Albanese has leaned heavily on his mantra of co-operating with China where possible and disagreeing where necessary, making clear chasmic differences remain between Canberra and Beijing. But his messaging from the glitz of central Shanghai, to the Great Hall of the People in Beijing, and the panda breeding capital of Chengdu, is that peace through trade and people-to-people ties are the best ways to navigate the challenges in the relationship. It is not a new approach — the EU took it with post-Soviet Russia and was blindsided after the 2022 invasion of Ukraine. Whether Mr Albanese's China push will make Australia vulnerable down the line will be a matter for future generations.
