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Carbon tax- smoke, mirrors and just getting the job done
The world’s governments are working out how to deal with climate change. As usual mining companies have pragmatically recognised that a smaller carbon footprint makes business sense. Taxand Australia discusses what the future of carbon management might be.
A core promise of the Australian Coalition Government was the repeal of the carbon tax introduced by the former Labor Government in 2012. The repeal of the carbon tax is now contingent on the Coalition Government obtaining the support of the populist Palmer United Party which has prevaricated almost daily on whether it will support the repeal legislation.
While the repeal of the carbon tax and the Government funds supporting alternative renewable energy sources may slow the progress of off-grid solutions it will not ultimately be a showstopper. In the end the economics are just too compelling. Energy is one of the biggest costs of running a mine.
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Whether the G20 includes climate change on the agenda and irrespective of the outcomes in Paris 2015, mining companies are seizing the opportunity to transform the economics of their business by replacing volatile energy costs with one that is fixed for the life of the project.