The MCA welcomes the Federal Government’s consultation paper on the safeguard mechanism and looks forward to mapping out a pathway to net zero for industry that is orderly and not disruptive.
The mining industry recognises the need to reduce emissions globally, nationally and at the sites and facilities driving Australia’s resources industry.
As Australia seeks to achieve the 2030 target and the 2050 net zero target, it is vital that Australia’s export industries continue to thrive and remain internationally competitive.
Policy reform should not drive businesses to reduced production or closure due to an inability to compete with competitor countries who are not implementing strict emissions constraints on their export industries.
This would just shift emissions overseas to jurisdictions without strict emissions requirements. It would be neither sustainable nor real emissions reduction.
The objective must be to develop the policy reforms in a manner which keeps our industries strong and sustainably puts us on a course of emissions reduction through the development and deployment of low emissions technologies and processes.
Australia needs a strong mining industry. In FY22, Australia’s exports of minerals, metals and energy commodities was worth $413 billion and accounted for 69 per cent of total of the nation’s export revenue.
Over the last decade the industry has paid $254 billion in taxes and royalties. These contributions support stronger communities by helping to fund hospitals, schools, doctors, nurses, police, teachers and other essential services and infrastructure.
The industry is also critical in supporting regions and communities, including providing 1.1 million jobs in Australia supported by the mining, mining equipment, technology and services sectors.
We must manage this transition in a manner which reflects technology readiness and cost.
The pathway will not be linear for all industries but great progress is being made across mining.
