The Carbon Pollution Reduction Scheme (CPRS) will force the closure of 16 coal mines and slash a further 10,000 jobs, according to a report released by the Australian Coal Association (ACA) on Friday.
Consultants for the ACIL Tasman report claim the exclusion of coal mining from Emissions Intensive Trade Exposed (EITE) provisions of the CPRS is ‘seriously flawed’ and based on ‘incorrect information’.
According to the report, emissions produced from most coal mines puts them well above the threshold for EITE permit eligibility.
However, coal production is not included under the current CPRS scheme, which is expected to cost the industry more than $14 billion in the first ten years.
The ACA is calling on the Federal Government to include coal mining to Emissions Intensive Trade Exposed provisions (EITE) of the CPRS to deliver long term economic benefits.
“The coal industry needs to be included to benefit the industry and get the CPRS right before it begins,” ACA spokesman Peter Logue told MINING DAILY.
“The fact the scheme has been delayed doesn’t make any difference if they have got it wrong to start with.”
ACA executive director Ralph Hillman said the scheme will have “significant negative consequences” for coal production, investment and employment opportunities.
“It will simply export jobs, market share and investment to our main competitors,” he said.
According to Hillman, the study shows the coal industry is being “unfairly treated” by its exclusion from the EITE provisions, which will mean State Governments forgo significant annual royalties.
“We are seeking fair treatment that will prevent substantial Australian job losses and a loss of long-term investment in Australia,” he said.