MCA supports maintaining international competitiveness as Australia heads towards net zero

In responding to the Leader of the Opposition’s launch today of its Powering Australia plan, the MCA expects the ALP would consult with industries most affected by changes to the Safeguard Mechanism.

Regional industries, including mining, are the backbone of the nation’s economy.

Consultation with the resources sector, which represents 66 per cent of total exports and are impacted by the Safeguard Mechanism, is critical to ensure their ongoing competitiveness.

It is vital to ensure the long-term viability of people’s jobs in regional Australia.

The Australian mining industry has committed to an ambition of net zero emissions by 2050.  This is well reflected in ongoing work through the MCA Climate Action Plan.

The sector is acting to achieve this ambition and continues to invest in the technology development necessary to reduce emissions. This includes the deployment of renewable energy and battery storage at mining sites, to collaborations and investments in the development of electric haul trucks, hydrogen-power and other low carbon solutions.

It is vital that any policy changes do not force emissions reduction faster than technology and commercial reality can deliver.

Australia’s world class resources export sector competes based on globally determined market prices and cannot pass on additional imposed costs to export customers.

Additional costs imposed onto some parts of the sector that cannot be absorbed or passed on to export customers will impact operations, jobs, taxes and royalties for no environmental benefit if the output of those operations is shifted to come from other lower cost, higher polluting jurisdictions.

To maintain international competitive and investment attraction, major Australian export industries like mining must have policies that support a sustainable reduction in emissions.

The industry will work with government to ensure the sector’s contribution and potential for the nation is understood and we progress towards net zero by 2050.

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