MCA submission to the second draft review of the Climate Change Authority

The Australian minerals industry recognises the need for a measured transition to a low emissions economy through policy settings that are globally aligned, calibrated with global action, use market mechanisms for cost-effective mitigation, and is focussed upon technological development.

The Minerals Sector’s Statement of Principles on Climate Change Policy states that it is ‘imperative for all nations to sustainably reduce the production and consumption of greenhouse gas emissions without compromising international competitiveness, energy security and economic growth, improved living standards and poverty alleviation’.

The success of Paris climate talks in reaching the next iteration of a global action, setting a reduction path and providing a basis for nationally differentiated action to limit temperature rise over the century to less than 2 degrees, opens an important new phase. It marks the beginning of a more globally aligned policy framework. That said, global action will remain uneven for some time and will require careful calibration of domestic policy settings.

In Australia, there have been important lessons over the past ten years about getting the policy mix right: the importance of energy and economic security alongside climate management goals; the need to use market mechanisms for least cost abatement; to establish a price signal not a revenue raising device; and the importance of co-operating with trading partners for mutual economic and technological benefit.

In this context, the minerals industry favours a gradual evolution of policy instruments rather than wholesale and disruptive changes.

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