Many emissions-intensive industries reduce their CO2 output through improved

Tag : carbon steel

THE Australian Workers Union insists its proposed compensation foremissions-intensive trade-exposed industries would ensure theycould operate competitively in Australia even when companiesoverseas did not have to pay for their carbon emissions.
But the AWU - which represents workers in the hardest-hitindustries such as cement, liquefied natural gas, steel, aluminium,petrochemicals and plastics and paper - has backed the BusinessCouncil of Australia view that the proposed compensation isinadequate and that some industries are likely to move offshore.
In response to widespread industry criticism, the Governmenthassaid it is considering changes to the formula by whichit determineseligibility for the free permits it is offering tosomeemissions-intensive trade-exposed industries.
The AWU says it supports the move to determine eligibility on thebasis of profitability rather than revenue, but remains unconvincedit will solve the problem of driving new investment offshore.
The union says the specific concerns of its members working in themost-affected industries could be allayed by an insurance schemethat promised them compensation should their employer moveoperations overseas.
The AWU's detailed formal submission to the Government, due to bereleased today, says this could be done by giving the unacquittedstock of permits that their employer would have otherwise receivedto a workers' trust fund - possibly administered in conjunctionwith successful industry superannuation funds.
"Alternatively, a portion of permits could be allocated directto the workers' trust at the commencement of the ETS withconditions attached," the AWU submission says. The insurancewould be "separate to and distinct from additional structuraladjustment and compensatory arrangements which may be put in placein the event of plant closures, including redundancy and retrainingpackages".
The AWU has said that in the cement industry, carbon insurancecould be worth an average of $65,000 for each worker, if plantsshut as soon as the emissions trading scheme begins.
The AWU has consulted extensively with its membership and majoremissions-intensive companies in developing its plan.
The Government will release its long-awaited Treasury modelling onthe impacts of its proposed emissions trading scheme next month,with final decisions on the design of the scheme to be taken by theend of the year.
The Government believes many emissions-intensive industries canreduce their CO2 output through improved and more efficientprocesses.
But the AWU paper also highlights some of the allegedly perverseeffects of an ETS on Australian industries.
It says that Australian aluminium smelters produce 0.26 tonnes ofCO2 equivalent per tonne ofaluminium, compared with 0.7per centglobally in 2006.
"Lost production to China would result in twice the level ofemissions for the same quantity of aluminium produced," itsays.
And it says industry producers would inevitably lose market shareto competitors from Southeast Asia, even though they had reducedthe carbon intensity of their production by 14 per cent over thepast six years.