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CFMEU Applauds BHP Billiton’s Shift to a Carbon Tax in Australia

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20 September, 2010

The Mining and Energy section of the Construction, Forestry, Mining, and Energy Union (CFMEU) welcomed remarks by BHP Billiton CEO Marius Kloppers last week that carbon pricing in Australia must be part of the mix in meeting the challenges of climate change.

CFMEU National President Tony Maher said in a statement on 17 September that BHP Billiton’s breaking from the rest of industry on a future carbon tax is “a big step in the right direction.”

“As the world’s largest mining company, BHP has laid down a challenge to the other mining operations and the Minerals Council,” said Maher. “The scare campaigns on climate change cannot be repeated,” he added, referring to a hot-button issue inside Australia that was at top of the list in the toppling of the Kevin Rudd government.

CFMEU National President Tony Maher 

Kloppers made his comments in a speech on 15 September at a lunch in Sydney to a forum of the Australia-British Chamber of Commerce. He said eventually a global initiative regarding carbon pricing will come and when it does, “Australia will need to have acted ahead of it to maintain its competitiveness.”

The BHP executive said, “Carbon emissions need to have a cost impact in order to cause the consumer and companies to change behaviour and favour low-carbon alternatives.” Before the business leaders, Kloppers called for “a mosaic of initiatives” to reduce carbon emissions, including a “combination of a carbon tax, land use actions and limited (carbon) trading systems” covering power plants.

The speech marked a dramatic shift in public views voiced by resource-rich mining houses and industry alike on the climate change debate in Australia. Following the speech, both business and industry leaders denounced the speech.

However, CFMEU suggested BHP Billiton’s shift, along with the appointment of Parliamentarian and former Australian Council of Trade Unions (ACTU) Secretary Greg Combet as new Minister for Climate Change, has turned the tide on the debate. The Labour Party’s Combet is currently assembling a climate change committee in hopes that legislation implementing a carbon pricing system will be readied by 2012. Opposition parties in Australia, the Liberals and Conservatives, are boycotting the committee.