A report, commissioned by the Australian Workers Union (AWU), on the cost of climate change has called for the aluminium industry to be granted short-term exemption from an emissions trading scheme (ETS).
A poorly-designed emissions trading scheme could cost Australia’s aluminium sector 15,000 jobs and force the industry offshore the report warns.
The exemption from an ETS would allow the industry time to invest in carbon-neutral energy sources and improve efficiency.
AWU secretary Paul Howes has urged the federal government to help these industries to clean up their act and bring in new technology such as carbon capture and storage.
The report recommends that the government should also offer income tax credits to companies for each additional employee hired, to stimulate further job creation.
There are currently seven alumina refineries and six aluminium smelters in Australia, employing over 15,000 full-time and contracting staff.
Mr Howes said if Australia’s aluminium industry was lost to big international polluters like China or India, global greenhouse gas emissions would worsen, thousands would lose their jobs and the regional Australian communities and economies would be crippled.
“We know, by keeping good jobs in industries like aluminium smelters and refineries here in Australia, we are actually helping in the battle against greenhouse gases,” Howes said.
“If we do that, then decent, well-paid, secure jobs will not be lost to Australia and taken offshore to countries like China, India and Brazil, whose pollution levels are far, far higher than we have here in Australia.
“For every tonne of alumina made here in Australia, we have 50 per cent fewer emissions than the same tonne made in China.
“So if this industry shifts to China because of climate change imposts, we only worsen global pollution.”