Prime Minister Kevin Rudd wants the scheme passed in time for the Copenhagen climate change talks next month.
According to a report yesterday, Liberal leader Malcolm Turnbull stated he had majority support for amendments, but the bill’s future could hinge on a leadership vote today.
Despite the amendments, QRC chief executive Michael Roche said the coal industry was “profoundly disappointed” at the minimal reduction in new taxes on the coal sector.
“This is a disappointing result for the coal industry that still leaves big risks hanging over jobs in regional Queensland for no environmental benefit,” he said.
Climate Change Minister Penny Wong said assistance would be provided to the coal sector through a $1.23 billion adjustment scheme and a $270 million abatement fund.
The adjustment scheme is aimed at providing transitional assistance to the most emissions-intensive coal mines with the allocation of free permits, while the abatement fund will grant money to abatement projects with a priority for electricity generation from waste coal mine gas.
An independent expert review will examine the impact of the CPRS on the sector with the first review scheduled for 2014. The review will draw on analysis from the Productivity Commission and advice from CSIRO on the availability of cost-effective abatement technology.
Mines eligible for the free permits will be those that have fugitive emissions of more than 0.1 tonnes of carbon dioxide equivalent per tonne of saleable coal and those that have carried out coal mining operations for some or all of the period from July 1, 2007, to June 30, 2009.
The government said the permits to be allocated would be equal to around 60% of the fugitive emissions from gassy mines during 2008-09.
Wong said the scheme would allow liability for fugitive emissions at the gassiest mines to be reduced from $20 per tonne of saleable coal to $5/t at a $25 carbon price.
Assistance will be linked to production and capped at base period production levels.
The abatement fund, boosted by $20 million, means the government will chip in a quarter of the cost of a company’s abatement project.
The revised deal also includes more than $1 billion to help manufacturing and mining businesses cope with electricity price rises.
In addition, the government will introduce minor technical amendments to remove “all doubt” that fuel exporters, including Australian coal exporters, will not be held liable under the CPRS for the carbon embodied in the fuel they export.
Roche said yesterday’s package represented less than 10% of the $14.5 billion CPRS bill the coal industry faced over the next 10 years, while other trade-exposed industries would receive transitional assistance in the order of 66-95%.
“Even with a doubling of assistance to gassy mines, the risk to jobs will re-emerge more strongly as assistance dries up after 2015,” he said.
“Looking beyond existing mines, it is obvious that this new tax will make Australia less attractive to coal mine investment, particularly as there is no provision for new mines or mine expansions in the package.”
On the other hand, the CFMEU Mining and Energy union said the changes delivered protection to coal communities while rejecting the multi-million dollar scare campaign mounted by big mining companies.
CFMEU president Tony Maher said the new climate change deal would help protect more than 100,000 coal mining jobs.
