Latest news with #FrankJotzo
News.com.au
17 hours ago
- Business
- News.com.au
Albanese government will not rule out ‘carbon tariffs' on building materials despite current industry pressures
Australia's under pressure building industry could be set for another round of setbacks following comments from Energy Minister Chris Bowen this week. As construction companies go broke at alarming rates across the country, new environmental measures slated for the near future could drive up operating costs even further. Speaking about Australia's 2030 emissions goal, Mr Bowen hinted the Albanese government could consider so-called carbon tariffs on high-emission imports like cement and steel in its next term, imploring that the nation needs to 'do more' to meet climate targets. Later this year, the government will need to outline its emissions reduction target for 2035, guided by recommendations from the independent Climate Change Authority. Mr Bowen indicated the government is open to new policy tools if current measures prove insufficient. Among them is the idea of a carbon border adjustment mechanism, which would apply tariffs to imports from countries without equivalent carbon pricing. The government, like many others around the world, is trying to avoid what's known as carbon 'leakage', where emissions-intensive production is simply moved offshore. The mechanism is currently under review by ANU Professor Frank Jotzo, whose early analysis flagged clinker, cement and lime as particularly exposed sectors. Steel, ammonia, and glass were identified as medium risk. 'We have been clear that we want to ensure Australian industry is best placed to compete in a decarbonising world,' Mr Bowen said. 'What could be the case is … we look at particular sectors first around cement and lime, [which] are places that we looked at in particular, but I'm not going to get in front of the process … We'll have more to say during the course of this term.' His comments have beet met with heavy criticism from conservatives, who traditionally favour stability for businesses as opposed to regulations with ambiguous outcomes. Opposition energy spokesperson Dan Tehan accused Mr Bowen of pulling the rug out from under industries that would be negatively impacted by environmental regulations. 'Before the election, Chris Bowen, this arrogant minister, said nothing about carbon tariffs. Yet here he is immediately after the election talking about putting them in place,' Mr Tehan said. Australia's emission target 'on track': Bowen Mr Bowen said that while 2024 emissions data showed limited progress, Australia remains broadly on track to reduce emissions by 43 per cent by 2030. 'We've never suggested it's a linear line … But with the right approach from government, yes, we can continue to be on track [despite] facing headwinds and challenges from time to time,' he said. The comments come days after the federal government extended the licence for the North West Shelf, Australia's largest oil and gas project, for another 40 years. That particular move was heavily panned by environmentalists. Mr Bowen defended the approval, which came from Environment Minister Murray Watt, saying it adhered to existing legal frameworks that don't factor in emissions. He added that reforms to those laws remain pending. 'The decision … was made according to the very strict criteria of the environmental approvals legislation,' he said, noting that the site is already covered by Labor's safeguard mechanism, which requires major polluters to cut emissions or offset them. 'It's already obliged to be reducing emissions today and it is,' he said. 'The whole idea of the safeguard mechanism is to send the message to the boards to say, 'Hey, you know, you should start investing in onsite emissions abatement here, because we're going to require you to buy offsets if you don't.'' Meanwhile, the US government recently raised tariffs on steel imports in a move that prompted pushback from Canberra amid disruption concerns. Mr Bowen downplayed the influence of the Trump administration's stance on global climate efforts. 'The United States is around 12 per cent of emissions globally. That's a lot, but it doesn't mean that the rest of the 88 per cent of us stop doing things.' He reaffirmed Australia's bid to host a future global climate conference in Adelaide, describing it as a platform to highlight the country's transition. 'A conference that knocks it out of the park is our intention for Australia to showcase ourselves, to highlight the jobs opportunity for a traditional fossil fuel country like ours, that we can and will embrace the transition.'
Daily Mail
4 days ago
- Business
- Daily Mail
Anthony Albanese's government considering a new tax to help Australia acheive its climate targets
Chris Bowen has refused to rule out a possible 'carbon tariff' on dirty cement or steel as he acknowledged that Australia must 'do more' to achieve its climate targets. The Energy and Climate Change Minister was quizzed by the ABC's David Speers about whether he would bring in a carbon tariff. This would see levies placed on carbon-intensive products such as steel, cement and lime imported from abroad and could make the building process more expensive. It is a way of ensuring that Australian companies do not outsource carbon-emitting activities to other countries with less ambitious carbon-reduction targets. 'We have been clear that we want to ensure Australian industry is best placed to compete in a decarbonising world,' Bowen told the program. 'What could be the case is … we look at particular sectors first around cement and lime, [which] are places that we looked at in particular, but I'm not going to get in front of the process… 'We'll have more to say during the course of this term.' The Australian Government appointed Professor Frank Jotzo to lead a review into carbon leakage and what policy options were available to address it. This would see levies placed on carbon-intensive products such as steel, cement and lime imported from abroad and could make the building process more expensive His preliminary report identified cement, clinker and lime as industries in which there was a high leakage risk, while steel, glass and ammonia posed a moderate risk. The European Union has brought in a Carbon Border Adjustment Mechanism, which will imposes a carbon tax on imports from countries with less strict climate policies. Bowen's refusal to rule it out was criticised by the Coalition's new energy spokesperson Dan Tehan. 'Now before the election, Chris Bowen, this arrogant minister, said nothing about carbon tariffs,' he said. 'Yet here he is immediately after the election talking about putting them in place.' Tehan accused Bowen of putting Australia's 'energy security at risk' and putting gas and electricity prices up. 'Now he wants to follow Donald Trump's lead and put in tariffs. What a mess,' he added. Bowen said Australia was 'by and large on track' to meet its target of reducing emissions by 43 per cent by 2030. This is despite figueres last week showing little progress was made in 2024. 'We've never suggested it's a linear line … But with the right approach from government, yes, we can continue to be on track (despite) facing headwinds and challenges from time to time,' he said. Labor was criticised by environmental groups for approving a 40-year extended licence to WA's North West Shelf, the largest oil and gas project in the country. The government has a deadline this year to set its 2035 emissions reduction target.
News.com.au
5 days ago
- Business
- News.com.au
Energy Minister Chris Bowen doesn't rule out carbon tariff on high emissions producing imports
Chris Bowen has been accused of following 'Donald Trump's lead' over comments suggesting Australia could force carbon tariffs on emission-heavy imports. Mr Bowen didn't rule out enacting a carbon tariff on carbon-heavy sectors like cement and lime, stating that 'we'll have more to say during the course of this term'. He said decisions would be made to 'ensure Australian industry is best placed to complete in a decarbonising world'. 'I'd urge against sweeping generalisations about policy settings,' he told the ABC on Sunday. 'What could be the case is obviously we look at particular sectors first, around cement and lime are places that we've looked at in particular, but again, I'm not going to get in front of the process.' Mr Bowen also referred to the Carbon Leakage Review which was conducted by Professor Frank Jotzo. Initial findings backed a border carbon adjustment mechanism that would make importers pay for the carbon created during production, identifying at-risk commodities like cement, lime and clinker, and moderate risk products like steel, glass and ammonia. 'We asked Professor Jotzo to look at this, he's been doing excellent work consulting Australian industry very heavily,' he said. 'I've had lots of meetings with steel makers and cement makers about these things over the past 12 months, for example, getting their feedback, and we'll have more to say during the course of this term.' Newly installed Coalition energy and emissions reduction spokesman Dan Tehan seized on Mr Bowen's comments. 'Now before the election, Chris Bowen, this arrogant minister, said nothing about carbon tariffs, and yet, here he is immediately after the election, talking about putting them in place,' he said in a video shared on social media. 'Now let's have a look at what this minister has presided over. He's put our energy security at risk. He's put electricity prices up, he's put gas prices up, and he's put emissions up, and now he wants to follow Donald Trump's lead and put in place tariffs. What a mess.' Appearing on Insiders, Mr Bowen also maintained that Australia is 'by and large on track' to meet our 43 per cent 2030 emission reduction targets, despite figures released on Friday revealing that emissions had increased year-on-year by 0.05 per cent. While Mr Bowen conceded Australia needed to 'do more' to reach net zero by 2050, he said output from renewables were 'very encouraging,' while transport remained an issue. 'Now our new vehicle efficiency standards only came into force on 1 January, for example. I wouldn't pretend that they've yet had an impact,' he said. 'These are the sorts of things that we need to keep going on to ensure that we can achieve and will achieve a 43 per cent emissions reduction, which I'm very confident we can and will.'
