Achieving net zero emissions requires a concerted effort on new technologies, not trade protection.
The proposed EU Carbon Border Adjustment Mechanism (CBAM) as sketched in documents released by the EU Commission on 14 July is essentially a tax on imported energy intensive products.
Proposals to tax imports of iron, steel, aluminium, cement, fertilizer and electricity under the current proposal need to fairly take into account different ways other countries are managing the reduction of carbon emissions in their economies.
Australia has a good story to tell. Australia is leading the world in the uptake of renewable generation – 10 times the world average – according to AEMO. Australian mining recognises the monumental task of lowering emissions. Our members have embraced the challenge and support the Paris agreement and the transition to net zero emissions.
Miners in Australia have already progressed over 39 abatement activities including the installation of renewable energy and battery storage, hydrogen fuel cell use, fugitive emissions capture and conversion, fuel switching as well as capturing energy savings through process efficiency improvements.
These initiatives are delivering emissions reductions now, not seeking to shift the burden through trade disruptive policies scheduled to take effect years into the future, and highlight the advantage of technology research and deployment in achieving emissions reductions.