Wednesday, 18 May 2011

Investors want action on carbon pricing

Summaries - Australian Financial Review
9 May 2011, Page: 9

Mitsui Co, is one of Japan's major investment and trading firms and believes that any uncertainty on carbon pricing would make it difficult to commit to renewable power investments in Australia. Mitsui has urged the Federal government not to delay its decision on carbon pricing. Junichi Yamada, a general manager at Mitsui Co (Australia) said that a delay would make it "very hard for Mitsui".

Mitsui project development manager Andres Maasing explained: "We have to put forward a compelling case to our minders in order to get projects approved". A delay in making a decision would affect that process. Prime Minister Julia Gillard vowed in February to introduce a carbon price in 2012. But the government and the Australian Greens have not been able to agree on emissions targets.

Despite the uncertainty over carbon pricing, Mitsui considers Australia to be an attractive market. In Victoria, Mitsui is developing the Bald Hills wind farm and has a 30% share of the Loy Yang power station in Latrobe Valley. In Western Australia, Mitsui has stake in the Kwinana Cogeneration Plant near Perth, which provides electricity to utility Verve Energy and electrical and steam power to the BP Australia Kwinana oil refinery.