The Morrison Government’s main climate policy, the Emissions Reduction Fund, has again allowed big polluters to increase emissions without penalty.
In late July, BHP, Anglo American and other companies were .
“As it is currently being implemented by the Morrison Government, there is no point in the safeguard mechanism existing,” said the Australian Conservation Foundation’s climate change program manager, Gavan McFadzean.
“It is worse than a do-nothing policy-it is achieving the exact opposite of what it was designed to achieve.”
The Emission Reduction Fund’s safeguard mechanism sets climate pollution limits for Australia’s largest emitting facilities like power plants, mines and refineries. Under the policy if this baseline is exceeded companies are required to buy carbon permits or pay a penalty. But the safeguard mechanism also allows large companies to apply for increases in their baselines under a range of conditions.
“With giant companies moving the goalposts as they pollute and the Emissions Reduction Fund paying for hard-earned abatement elsewhere, the taxpayer is effectively picking up the tab while big corporations profit,” Mr McFadzean said.
“Frustratingly, the safeguard mechanism actually has the basic architecture required to drive down industry emissions. The thing missing is political will.
“BHP has an emissions problem. The massive mining company consistently refuses to pick up the tab for its climate pollution if there are ways of getting out of it.
“The climate pollution BHP is putting into the atmosphere is real and is warming our planet. Finding loopholes does not change that. If BHP was serious about climate change it would purchase real abatement.
“The increase in limits at Anglo American’s Capcoal mine is the equivalent of the annual emissions of more than 140,000 family cars. The original emissions of the mine were already on par with the annual emission of Darwin.”
In the last 18 months, ACF investigations have revealed:
- Nearly a fifth (18 per cent) of the 210 facilities covered by the Emissions Reduction Fund’s safeguard mechanism in 2018-19.
- Rio Tinto used $2 million from the Emissions Reduction Fund to at a mine in Arnhem Land.
- BHP was permitted to increase emissions from its mines, then .
- Centennial Coal was from its Myuna Colliery in NSW for two years in a row without any penalty.
- Incitec Pivot exceeded the agreed emissions baseline from its plant in Moranbah, Qld, by at least 198,279 tonnes but .
- Vales Point coal-fired power station successfully registered a project under the emissions reduction fund to bid for cash to .
- Anglo American was allowed to from a major coal mine without penalty.
- South African miner Gold Fields won an Emissions Reduction Fund at a project in Western Australia that would have gone ahead anyway.
