Hard-ball Pocock a new hurdle for PM

The independent senator becomes the latest challenge for the Albanese government with his push for tougher carbon price caps and credit standards.

David Pocock is demanding a higher carbon price cap for big polluters among other demands to support Labor’s signature climate policy.

Independent senator David ­Pocock is pushing for a higher carbon price cap on big polluters, tougher carbon credit standards and a climate trigger targeting high-emitting projects, ahead of formal negotiations with Climate Change Minister Chris Bowen.

Senator Pocock, who along with the Greens will commence talks with Mr Bowen in coming days, has warned the Albanese government that its carbon credit scheme must have “world-leading integrity” and not restrict ­faster decarbonisation.

With the Coalition opposing the safeguard mechanism, the federal government needs the votes of the Greens’ 11 senators and two crossbenchers to get its carbon credits regime through the Senate.

Senator Pocock said baseline emissions under the Coalition’s safeguard mechanism were “too generous” but raised concerns over Labor’s plan, which forces Australia’s 215 biggest-polluting facilities to slash emissions by nearly 5 per cent each year out to 2030.

Mr Bowen’s draft plan, which has been backed by industry, would establish a carbon-trading system for heavy industry capping credits at $75 a tonne.

The Climate 200-backed ACT senator, who won’t finalise his position on the mechanism until parliament returns in March, said multinational companies were internally pricing carbon at about $100 a tonne.

The former Wallabies captain said a market mechanism, which includes a limited price cap, was not the best way forward.

“Australia is playing catch up,” he told The Australian.

The Prime Minister will have to ramp up the pressure on big polluters if he is to win the support of the independent senator. Picture: NCA NewsWire / Gary Ramage

Senator Pocock, who has joined the Greens in pushing for a climate trigger that would ultimately target fossil fuel projects, said a carbon credit market that offsets emissions should offer a higher price to benefit farmers and other participants.

The senator also wants the safeguard mechanism to set limits on using carbon credits to offset emissions.

“No other country except Kazakhstan says you can just offset all your emissions,” he said. “Everyone has limits on what percentage you can offset, which is driving that kind of genuine emissions reductions. With safeguarding, we’re not. The targets are all about efficiency, not necessarily total emissions.”

Greens Leader Adam Bandt on Thursday pledged to engage with Labor in “good faith” but warned that new coal and gas projects would “make the climate crisis worse”.

Mr Bandt said Labor could compromise on the Greens’ demand for no new coal and gas projects via a climate trigger.

Senior government sources said there was “no appetite” to make major concessions to the Greens and they were not considering blanket bans on fossil fuels projects.

Mr Bowen said he would be astounded if the Greens and crossbenchers – who represent a “combination of progressive forces” – would say no to pollution reduction across the heaviest-polluting sectors, which contribute 28 per cent of Australia’s total emissions.

“I don’t believe it will get to that,” Mr Bowen said.

The Climate Change Minister welcomed Mr Bandt’s confirmation that the Greens’ position was “an offer, not an ultimatum”. While the carbon credits legislation needs to pass the Senate in March, wider rules enforcing the new scheme from July 1 will be made by ministerial regulation.

Minerals Council of Australia chief executive Tania Constable, who represents mining giants including BHP, Rio Tinto, Glencore and Whitehaven, told The Australian the MCA “will never support or accept any policy that stops mining, as has been put forward by the Greens”.

The Investor Group on Climate Change, whose members manage more than $30 trillion and include Australia’s biggest superannuation and retail funds, warned that failure to pass the safeguard mechanism would send the wrong message to global capital markets.

Writing for The Australian online, IGCC chief executive Rebecca Mikula-Wright said the mechanism must increase certainty for business and investors.

Ms Mikula-Wright, who described the mechanism as “far from perfect”, said the new regime would ensure capital flows to businesses and projects leading the push to decarbonise the economy.