Coal. Photo by Kenneth Moyle, flickr
Emissions trading windfall for offshore multinationals
Date: 19-Dec-2008
Billions of taxpayers’ dollars could go offshore in free carbon permits to emissions intensive companies under Australia’s carbon pollution reduction scheme, analysis released today by the ACF shows.
The analysis, by financial analysts Innovest Strategic Value Advisors, estimates $825 million will go to aluminium smelting companies, $227 million to alumina refiners, $146 million to cement makers and $124 million to steel makers.
Nearly half (47 per cent) of the total assistance to ‘emissions-intensive trade-exposed’ industries will go to overseas companies if black coal is eligible for assistance under the scheme. That figure will be 36 per cent if black coal is made ineligible for assistance.
Rio Tinto, listed on the stock exchange in Australia and the UK, stands to gain the most under the arrangements outlined in the Federal Government’s recent green paper, with the company expected to collect around $489 million in assistance, per annum.
The top ten recipients of assistance earned a combined $115 billion in operating profits in their most recent reporting years.
“This analysis shows the compensation arrangements proposed in the green paper are far too generous to big polluters and overseas interests,” said ACF climate change program manager Tony Mohr.
“Now is precisely the wrong time to give handouts to international companies without a guarantee of lower emissions from these companies or benefits for Australian taxpayers.
“Under the current plans for emissions trading the amount being given away to the big polluters is more than the total federal budget spend on climate change and the environment.
“The bulk of the permit revenue should be spent helping Australian households and industries become more energy efficient and prepare for a carbon constrained economy.”