‘Betrayal’: Carbon credit cap tripling a hit to regional jobs, MPs claim

The tripling of the proposed carbon credit price cap is a “betrayal” of regional workers and will put jobs at risk, Opposition MPs claim.

• Editorial: Qld regions key to Albanese’s plans
• PM responds to claims China’s coal ban will end soon

The tripling of the proposed carbon credit price cap as part of the Albanese Government’s safeguard mechanism is a “betrayal” of regional workers and will put jobs at risk, Opposition MPs claim, with a third of impacted high-emitting facilities based in Queensland.

But Prime Minister Anthony Albanese said the policy “got the balance right”, was broadly supported by business groups and would give companies certainty going forward.

EDITORIAL: Qld regions key to Albanese’s plans

The government this week unveiled details of its proposed safeguard mechanism, a carbon cap-and-trade scheme and centrepiece for its plans to reach 43 per cent emissions reduction by 2030.

Prime Minister Anthony Albanese, visiting Queensland on Wednesday, tries locally grown lychees with Senator Murray Watt. Photo: Kentos Komms

Of the 215 biggest emitters covered by the scheme, such as large manufacturers, smelters and coal mines, about one third are in Queensland.

This includes 28 facilities in the regional electorate of Capricornia and 18 in Flynn, which includes major aluminium smelters.

The assumed price of $24 a tonne for carbon credits Labor took the election has tripled to $75 in the final design.

Companies which produce more than 100,000 tonnes of emissions will be required to reduce their carbon output by 4.9 per cent a year, buying carbon credits to offset what they cannot reduce by other means.

Hinkler MP Keith Pitt warned it could cost jobs.

“Labor has not only opened the door to heavy industry leaving Australia, they are hitting them with the broom to get out faster. The high-vis workers of Australia have been betrayed,” he said.

Flynn MP Colin Boyce said it was a “tax on job creating industries”.

But Labor has consistently argued the policy will create jobs in the regions, rather than remove them.

Former Resources Minister Keith Pitt said the safeguard mechanism was a betrayal. Picture: NCA NewsWire / Gary Ramage

Mr Albanese said the policy was about reducing emissions and it had the balance right.

“Companies are moving, business is moving, businesses like Rio Tinto. What they’re looking at is how they continue their manufacturing processes while they reduce their emissions,” he said.

“That’s the objective. To maintain jobs, maintain industry, but do it in a way that uses clean energy.

“It has been widely supported by the business community because they want that certainty going forward.”

The safeguard mechanism will include tailored plans for emissions-intensive, trade-exposed facilities to ensure they remain internationally competitive.