"fugitive emissions", page-2

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    Sydney Morning Herald / AAP
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    Coal can't be exempt from carbon tax: Swan June 8, 2011 - 11:44AM

    AAP

    The federal government has again ruled out exempting coal mining emissions from its proposed carbon tax, saying that could lead to trade sanctions which would hurt the industry.

    The Australian Coal Association on Wednesday released research which it claims shows none of Australia's competitors are taxed on so-called "fugitive emissions" of gas which are emitted when coal is dug up from the ground.

    Association executive director Ralph Hillman said Centre for International Economics research it commissioned "vindicates our position all along that none of our competitors face a carbon tax on these emissions".

    Advertisement: Story continues below "It is critical that the government when designing the carbon tax take into account the international competitiveness of the coal industry," Mr Hillman said in a statement.

    But Treasurer Wayne Swan says it wouldn't be in the coal industry's own interest to be exempted from a carbon price.

    "If we don't price carbon we could well find ourselves on the end of trade sanctions from other countries," Mr Swan told ABC Radio on Wednesday.

    "Of course, the first in the queue for that would be our coal industry.

    "I have said to the coal industry that they have a very big stake in making sure that Australia as a whole gets a price on carbon in the most efficient cost effective way."

    Climate Change Minister Greg Combet flatly rejected the coal industry's call for fugitive emissions to be exempted.

    He said the government's latest projections show fugitive emissions from coal mines and gas projects, combined with fuel combustion in liquefied natural gas projects, account for almost half of Australia's growth in greenhouse gas emissions to 2020.

    "These fugitive emissions are heading to be 10 per cent of our national emissions in 2020 significantly higher than in other coal producing nations," Mr Combet said in a statement.

    "To achieve emissions reductions across the economy at least cost it is reasonable to expect the coal industry to play its part."

    Under a $20-a-tonne carbon price the average liability for methane emissions would be around $1.60 per tonne of coal, Mr Combet said.

    That could be reduced by abatement activity in the gassiest mines and possible government compensation.

    Metallurgical coal is currently sold at $300 a tonne while thermal coal fetches $120 a tonne.

    Liberal senator Simon Birmingham said Wednesday's report was "comprehensive evidence" that the coal industry would be at a competitive disadvantage under Labor's carbon tax.

    And Wayne Swan should be held to account for "drip-feeding" treasury modelling that suit his political agenda, Senator Birmingham told Sky News.

    "He (Wayne Swan) should publicly release it so the whole lot can be analysed," he said.

    Australian exported $44 billion worth of coal in the year to April, official data showed last week.

 
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