Coal Industry Wants More from Australian Government

Platts reported that the Australian government plans to do away with its fixed carbon tax in 2014, a year earlier than originally planned. However, coal industry members believe the government has not gone far enough.

Nikki Williams, chief executive of the Australian Coal Association, commented:

Australia must immediately shelve this scheme and develop a climate policy that provides for a measured transition to a world price on carbon. Correcting one aspect of the scheme doesn’t alter its underlying architecture.

The proposed early shift to a floating carbon price merely puts Australia and its policies in the hands of European politicians whose first priority will be the welfare of Europe, not Australia.

As quoted in the market news:

Queensland Resources Council chief executive Michael Roche said in a separate statement that the government’s announcement of an earlier transition to a floating carbon price in Australia was small comfort to coal miners represented by the industry body.

Coal companies in Queensland are facing the most difficult market conditions for more than a decade, said Roche, adding that QRC members are suspending judgment in the absence of finer detail on the changes to carbon pricing.

Click here to read the full Platts report.