Carbon Border adjustments. The conversation that we must have.

[bob10]

Carbon border adjustments, what are they, and how will they effect Australia. This is a conversation we must have, if only to inform ourselves.

EDIT. While the Australian Government continues to push its ' technology not taxes ' slogan, it raises very significant tax revenue to fund support for continued use of fossil fuels. But they are taxes on the income and other activities of households and businesses instead of taxes on pollution.



Carbon border adjustments: What are they and how will they affect Australia? | RenewEconomy (https://reneweconomy.com.au/carbon-border-adjustments-what-are-they-and-how-will-they-affect-australia/)

[DiscoMick]

Other developed nations are preparing to levy carbon taxes on imports which were produced using methods which have high emissions. Australian exports, unless they were produced using renewable energy, I may be priced out of their markets. This is why steel and aluminum producers are already moving to source their electricity from solar, wind, hydro, batteries etc.

[travelrover]

New Zealand setting the pace again…

Kiwis will pay $3000 penalty for polluting utes under new policy, AA says | Stuff.co.nz (https://www.stuff.co.nz/motoring/300331893/kiwis-will-pay-3000-penalty-for-polluting-utes-under-new-policy-aa-says?cid=app-iPhone)

[windsock]

Another one from NZ.

New Zealand Aluminium Smelters in Tiwai Point (approx 80% owned by rio tinto) are going to close by 2024 due to electricity costs. They are almost 100% renewable and yet cannot do it. Transmission and distribution costs are the crunch for them even with various NZ govt hand outs and govt majority owned power company giving them very favourable pricing.

Tiwai Point Aluminium Smelter - Wikipedia (https://en.wikipedia.org/wiki/Tiwai_Point_Aluminium_Smelter)

Home, New Zealand's Aluminium Smelter, Tiwai Point, Manapouri Power Station (https://www.nzas.co.nz/)

Rio tinto have effectively run out of hustle. They have blackmailed the country a few times threatening to close and lose jobs over electricity costs. Each time till recently the govt stepped up and subsidised them for another few years. They use approx 13% of NZ total electricity, 33% of the total South Island electricity.

[travelrover]

Another one from NZ.

New Zealand Aluminium Smelters in Tiwai Point (approx 80% owned by rio tinto) are going to close by 2024 due to electricity costs. They are almost 100% renewable and yet cannot do it. Transmission and distribution costs are the crunch for them even with various NZ govt hand outs and govt majority owned power company giving them very favourable pricing.

Tiwai Point Aluminium Smelter - Wikipedia (https://en.wikipedia.org/wiki/Tiwai_Point_Aluminium_Smelter)

Home, New Zealand's Aluminium Smelter, Tiwai Point, Manapouri Power Station (https://www.nzas.co.nz/)

Rio tinto have effectively run out of hustle. They have blackmailed the country a few times threatening to close and lose jobs over electricity costs. Each time till recently the govt stepped up and subsidised them for another few years. They use approx 13% of NZ total electricity, 33% of the total South Island electricity.

If I remember correctly when it opened they had a guaranteed ridiculously low electricity ‘fixed price’ for 30 years. A new pricing regimen will have been in place for the past two decades… I assume the new price is at market rates.

[windsock]

I assume the new price is at market rates.

We have been assured it is a very good industrial rate but it hasn't been divulged due to commercial sensitivity etc. Forsyth Barr estimated it at around 3.5 NZ cents per kWh.

Broker believes Tiwai smelter beat down Meridian on power price by 36% | Stuff.co.nz (https://www.stuff.co.nz/business/123965739/broker-believes-tiwai-smelter-beat-down-meridian-on-power-price-by-36)

Residential customers here pay between 25 to 35 cents per kWh. 'Normal' industrial users can usually negotiate a rate if their use is large enough and this is around 8 to 15 cents per kWh. Wholesale market rate averages around 6-10 cents per kWh.

[bob10]

Other developed nations are preparing to levy carbon taxes on imports which were produced using methods which have high emissions. Australian exports, unless they were produced using renewable energy, I may be priced out of their markets. This is why steel and aluminum producers are already moving to source their electricity from solar, wind, hydro, batteries etc.


China's carbon cutback plans are already impacting the resources sector. Science states if no new fossil fuel developments were approved, carbon emissions from existing projects would still push the globe over the 1,5 degree threshold. Deloitte says mining and metals organisations were coming under public pressure early to reduce greenhouse emissions as part of preserving a public licence to operate. Renewable electricity is rapidly descending the cost curve. China will likely reduce it's overall energy imports by 95% in 30 years. it is estimated China needs to increase its use of non fossil energy by 80% of its total energy consumption and reduce its coal reliance for power generation to below 5% , in order to reach its target of carbon neutrality by 2060.

This information is from inqld.;

China's carbon cutback plans already impacting resources sector: ANZ (inqld.com.au) (https://inqld.com.au/business/2021/06/14/chinas-carbon-cutback-plans-already-impacting-resources-sector-anz/)

[DiscoMick]

The G7 also decided no more coal power stations.

[DiscoMick]

This writer argues Australia could do very well from foreign carbon levies if we use our natural advantages to shift to using renewable energy to produce green exports.

Ready or not: a carbon price on exports is coming to Australia - Pearls and Irritations (https://johnmenadue.com/jeremy-webb-ready-or-not-a-carbon-price-on-exports-is-coming-to-australia/)

[johnp38]

Another one from NZ.

Rio tinto have effectively run out of hustle. They have blackmailed the country a few times threatening to close and lose jobs over electricity costs. Each time till recently the govt stepped up and subsidised them for another few years. They use approx 13% of NZ total electricity, 33% of the total South Island electricity.

How many times did the auto industry do that to the feds here in oz and especially Mitsubishi with the SA state guvvy.

[johnp38]

And the overseas carbon market has created new jobs of paper shufflers managing the trading for big business

[NavyDiver]

The EU version is already having a impact on shipping with a ship planned to start cargo in several years now ready by 2023.

"A.P. Moller - Maersk will operate the world’s first carbon neutral liner vessel by 2023 – seven years ahead of schedule"

Its 2023 2030 and 2050 targets (https://www.maersk.com/news/articles/2021/02/17/maersk-first-carbon-neutral-liner-vessel-by-2023) are for the worlds biggest shipping company a real game changer not just paper shuffling[biggrin]

Also see price target at $2 per kilo carbon free ammonia for use in Shipping fuel cells which was/may still be part of the Asian Renewable Energy Hub (https://asianrehub.com/) despite a blocker put on the environmental impact at at least a part of that huge project.

BHP and so many more here in Australia, are moving quickly to ensure they do not get caught holding the hot potato of stranded assets .

[johnp38]

Go HAZER Go !!!!

[DiscoMick]

This is an example of how heavy industry is going renewable to avoid international carbon taxes, remain competitive and ensure jobs for the future.

Tomago, Australia’s largest aluminium smelter, vows to switch to renewable energy by 2029 | Energy | The Guardian (https://www.theguardian.com/australia-news/2021/aug/11/tomago-australias-largest-aluminium-smelter-vows-to-switch-to-renewable-energy-by-2029?CMP=Share_AndroidApp_Other)