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Australia's Wong Open to Further Carbon Talks With LNG Industry
in-en.com  2008-7-22 16:55:50  

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Australian Climate Change Minister Penny Wong said the government is willing to hold further talks with the liquefied natural gas industry to discuss concern that a planned carbon-trading system will halt growth.

The government ``will continue to consult with industry about their views on this issue,'' Wong told reporters today in Sydney. ``The Green Paper includes a range of assistance to the trade-exposed emissions-intensive sector. That is the basis for consultation.''

Wong outlined last week plans for a trading system that will cover about 1,000 businesses that each produce more than 25,000 metric tons a year of carbon dioxide. Woodside Petroleum Ltd. and Chevron Corp., two liquefied natural gas producers in Australia, are among companies that have said the system may slow growth by making new projects uneconomic.

``There is no menu of easy options when it comes to this issue, or tackling climate change more broadly,'' Wong said at a luncheon. ``Excluding or assisting certain sectors means that a smaller pool of contributors must shoulder the burden.''

Based on the government's Green Paper on emissions trading, LNG producers wouldn't qualify for any free emissions permits under the system, unlike aluminum, steel and cement producers, Citigroup Inc. said in a July 16 report.

Under the government's proposal, companies that emit between 1,500 tons and 2,000 tons of carbon dioxide for each million Australian dollars of revenue generated will be considered energy-intensive and will get about 60 percent of carbon permits for free. That rises to 90 percent of free permits for companies that emit more than 2,000 tons of carbon dioxide for each million of revenue.

Perth-based Woodside, operator of the North West Shelf LNG venture, said last week that its emissions-intensity may fall below the 1,500 per million-dollar threshold, meaning it would have to buy all its permits.

The Australian government has a long-term target to cut greenhouse gas emissions by 60 percent from 2000 levels by 2050 to help tackle global warming.


 
Author:Bloomberg  From:Bloomberg  Edit:steven
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