Caltex warns carbon scheme could shutdown Aust refineries
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Caltex Australia has warned a forum on emissions trading that current proposals for carbon trading could shutdown petroleum refineries in Australia.
Chief executive Des King says emissions trading could leave Caltex refineries exposed to competition with refineries which do not pay carbon costs.
He says Mobil has already threatened to go offshore, and imports could quickly rise from 25 per cent, to half of Australia's petrol supply.
"Those refineries should be in the scheme, but we've argued that the carbon costs on those refineries should elevate as the offshore refineries elevate, because a quarter of all petroleum products are imported and they are imported from countries that don't pay a carbon cost," he said.
The forum has also heard Australia's carbon trading scheme will tax greenhouse friendly fuel exports.
The chief executive of the Petroleum, Production and Exploration Association, Belinda Robins, says preparing liquid natural gas for export is energy intensive, so it would pay carbon penalties.
But it is a low carbon emitting fuel, which could reduce Asian emissions by 122 million tonnes a year.
"That's one of the fundamental flaws, it doesn't take account of those industries that are actually able to make a significant contribution to the global effort, secondly, it taxes exports, gives imports a free ride," she said.
