Concerned freight giant backs big emission cuts for industry

West Australian
Tuesday 9/12/2008 Page: 12

A big transport company has supported aggressive emissions cuts out of concern the Rudd Government may be getting a one-sided view from industry on carbon trading. Freight giant Linfox joined two Australian banks and developer Lend Lease among 140 businesses globally calling for deep and rapid cuts in a communique delivered to climate change talks in Poznan, Poland. Linfox environment and climate change group manager David McInnes said the public debate in Australia on climate change policy had favoured business groups urging more modest cuts on emissions.

"Those industry leaders in companies who feel that more aggressive targets are necessary were concerned that we put our point of view on the public record," Mr McInnes said. "Governments could be misled into thinking that there wasn't a measure of industry support for a change in the way that we do business." The effects of climate change were likely to be far more serious than bearing a short-term economic cost. "We're for taking action sooner rather than later," Mr McInnes said.

Lobby groups for big polluting industries have urged a relatively soft start to emissions trading and protection from the full carbon price when it can't be passed on to customers. The Poznan statement backed a 2050 global target of 50-85 per cent. Developing countries and environmental groups want rich nations to cut by 25-40 per cent by 2020. Mr McInnes said the Government could do better than a 2020 target range of 5-15 per cent it is reported to be considering. Linfox has its own target of cutting the company's emissions by 15 per cent by 2010 on 2006-07 levels.

Climate Change Minister Penny Wong will announce the Government's target range next Monday, along with its blueprint for the emissions trading scheme. The Greens said setting a weak target would not make scientific, economic or diplomatic sense. Senator Wong left for the Poznan conference yesterday saying Australia would play its part in tackling climate change through the ETS. While she has called it a working conference at the mid-point of talks where no binding commitments would be made, the Minister said Australia would call on other developed nations to announce mid-term targets as soon as possible next year.

Federal Opposition Leader Malcolm Turnbull yesterday said it appeared the Government's ETS design would impose heavy costs on trade-exposed industries. "It is clear that if the countries with which these industries compete do not have a comparable cost of carbon, we run the risk of exporting both emissions and jobs," Mr Turnbull said.