Introduction
The carbon pricing mechanism (the Mechanism)
will have particular implications for the mining industry. This
paper focuses on the implications for mining, including in
particular:
- The specific transitional arrangements pertaining to the coal
industry.
- The interaction between the Mechanism and the MRRT.
The implications for the Mechanism for the mining industry
The Mechanism will result in many consequences for the Mining
Industry including: (i) charges per tonne of carbon dioxide
equivalent (CO2-e) emissions, (ii) potentially
increased indirect costs for goods and services as the broader
industry begins to adapt to the carbon pricing regime, and (iii)
significant implications for planned project development or
expansion. In certain circumstances, and depending on contractual
terms, proponents may be able to pass-through certain of these
costs to end users, and therefore mining industry proponents
should, as a priority, review and consider