On the eve of the G7 meeting, to which Australia’s Prime Minister is invited, the Carbon Market Institute is urging the Federal government to address concerns that corporate Australia has around potential carbon border tariffs.
Scott Morrison has indicated that he intends to use his invitation to the G7 to warn against the use of carbon tariffs to force action on climate change.
The Carbon Market Institute has members across the carbon value chain, including emissions-intensive exporters. CEO of the CMI, John Connor, says: “Corporate Australia is significantly and increasingly concerned about the prospect of carbon tariffs, as demonstrated by our recent Australian Climate Policy Survey, which found that 79% of our members are worried about this, jumping up nine points from the previous year’s survey.
“The EU’s recently reported plan to impose carbon emission costs on imports of steel, cement, fertilisers, aluminium and power could easily cascade across to G7 countries, one of which is Japan, a major trading partner for Australia.
“Strengthening Australia’s emissions reduction targets and our Safeguard Mechanism, which exists to encourage large emitters to keep their emissions at, or below, baseline levels set by the Clean Energy Regulator, would help satisfy the rest of the world that Australia is taking emissions reduction seriously.”