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Australian Carbon Tax Threatens Aluminum Industry's Future
Edited by : AL CIRCLE
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The government's plan to impose a tax on carbon emissions threatens the future viability of the domestic aluminum industry as it would push up costs and limit future investment, Miles Prosser, Executive Director of Australian Aluminium Council, an industry lobby, said Tuesday.
Working on a theoretical cost of A$20 a metric ton for carbon dioxide emissions in Australia, the council found that the cost of aluminum produced in Australia would rise by A$100/ton. The carbon cost is only 85 cents a ton in China, which is enough "to materially shift investment and production decisions," Prosser told a Senate Select Committee on Scrutiny of New Taxes.
"The overall cost could be become large enough to shift investment decisions and push Australian facilities further up that global cost curve, not just losing potential future investment but putting those facilities in a place where they may be subject to curtailment or shutdown if the market price drops," he said.
Working on a theoretical cost of A$20 a metric ton for carbon dioxide emissions in Australia, the council found that the cost of aluminum produced in Australia would rise by A$100/ton. The carbon cost is only 85 cents a ton in China, which is enough "to materially shift investment and production decisions," Prosser told a Senate Select Committee on Scrutiny of New Taxes.
"The overall cost could be become large enough to shift investment decisions and push Australian facilities further up that global cost curve, not just losing potential future investment but putting those facilities in a place where they may be subject to curtailment or shutdown if the market price drops," he said.
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