Australian Workers Union tariff plan ‘would hit China’

The Australian Workers Union has demanded the Albanese government implement a Europe-style carbon tariff regime ‘as soon as possible’.

AWU national secretary Daniel Walton. Picture: Grant Wells

The Australian Workers Union has demanded the Albanese government implement a Europe-style carbon tariff regime “as soon as possible” in a move that would hit Chinese producers of steel, aluminium, glass and cement.

The call from the major blue-collar union came as the Coalition increased its attack on the proposed changes to the safeguard mechanism despite Labor winning the support of key business groups.

AWU national secretary Daniel Walton said the government needed to “immediately start exploring how a carbon tariff would work effectively in Australia” to protect jobs in heavy industry.

“Without one, our businesses will face unfair competition from dirty imports from countries with shocking environmental standards and regulations,” he said.

“That could lead to the offshoring of thousands of jobs which would be disastrous for Australian workers, our economy, and the global environment.

“We need to create a level playing field to make sure that products we will need for years to come can still be made in Australia.”

Mr Walton said he did not think putting the impost on Chinese products would make it harder for the government to lobby Beijing to lift import restrictions on Australian exports.

“Their engagement in trade is not as by the book as the rest of the world,” he said.

“I don’t think it will upset them because they will see other major markets that they supply to do the same thing.”

Energy Minister Chris Bowen on Tuesday revealed the government would consider slapping carbon tariffs on nations with underwhelming climate policies after unveiling tough new emission reduction regulations on industry including a carbon price of up to $75 a tonne.

Australian Industry Group energy adviser Tennant Reed said Europe’s carbon tariff scheme focused on imports of iron, steel, cement, aluminium, electricity, hydrogen and chemicals.

“They will probably expand that over time but that is a very similar list to what would be the top concerns in Australia,” he said. “Who do we import those things from? China is a very important trading partner there.”

The government’s proposed changes to the safeguard ­mechanism would force the 215 biggest industrial emitters to lower their emissions by 5 per cent a year to 2030. Each of the 215 facilities captured by the safeguard mechanism will have tailored plans on how they can contribute to the overall emissions reduction requirements, with special concessions to trade exposed businesses.

The proposal would ­involve the creation of a carbon-trading system for heavy industry with credits to be capped at $75 a tonne, well above the government’s pre-election assumption of $24 and higher than the $23-a-tonne price under former prime minister Julia Gillard’s carbon tax.

Businesses captured under the scheme including Rio Tinto, Woodside and South32 on Wednesday threw their support behind the revamped scheme, while others are investigating the full impact.

The policy has been criticised by the Greens and the Coalition, which could team up in the Senate to overturn it.

Opposition energy spokesman Ted O’Brien said the carbon price under the government’s policy was “three times higher” than the carbon tax.

“I think everybody across Australia knows that businesses are on their knees, and so are households,” he said. “The last thing they need is a new tax.”