The Australian chemicals and plastics industry today expressed concerns with inadequate transitional industry assistance measures under the Federal Government’s planned carbon pricing scheme.
Plastics and Chemicals Industries Association (PACIA) Chief Executive, Margaret Donnan, said “the Australian chemicals and plastics industry is highly trade exposed, yet transitional industry assistance under the carbon plan offers only patchy assistance to sections of industry at varying rates”.
“We have the unfortunate situation where a small number of our companies will be offered assistance at 94.5%, some will receive only 66%, and most others will receive no ongoing assistance at all”.
“We particularly fear for the future of those companies who will not receive ongoing assistance, such as our plastic product manufacturers who are already faced with significant challenges including the high Australian dollar. Sadly, it is these companies that also provide the greatest number of employees across the sector”.
“The Government must recognise that our competitors are not just Europe and the US, or even China. They are found throughout Asia and the Middle East, where the prospect of equivalent carbon pricing is very low”.
“Unilateral action without adequate industry assistance runs the very real risk of imposing greater costs on the Australian economy with little to no net environmental benefit”, Ms. Donnan said.
“It is critically important that we get the timing and design of the scheme right and in a way that recognises what is truly happening around the world - this scheme does not yet do that”.
The Australian chemicals and plastics industry has long supported action to address the challenge of climate change and is uniquely placed to meet the needs of a sustainable society, including through climate change mitigation and adaptation. Industry leaders are already taking proactive steps to lower their own emissions and broader environmental footprint though PACIA-led initiatives.
In addition, a global study by McKinsey & Co found that for every ton of CO2 the industry emits in manufacturing, our customers save between two and three times the emissions when using these products.
Media Enquiries:
John Osborn, Director - Communications, PACIA, (03) 9611 5409, 0417 997 774
More on PACIA and its members click here and here. McKinsey & Co carbon study click here.