BHP out of coal lobby
Miner quits due to differences on climate
MINING giant BHP Billiton will leave the World Coal Association over its approach to climate change and energy policy.
The announcement sparked a stinging rebuke from the global coal lobby group, which noted BHP is “one of the world’s largest exporters of coal” and had helped draw up the association’s energy and climate change policies.
BHP’s decision to end its membership and funding of the WCA comes as Rio Tinto exits coal via a series of sales that will reshape the global production landscape for the black rock.
Both mining houses have been targeted by activist investors for their membership of groups that promote coal use.
BHP flagged in December it expected to leave the WCA after conducting a review into its industry association memberships and their approach to energy and climate change.
The review found the WCA’s support for high efficiency, low emission coalfired power plants was at odds with BHP’s “technology neutral” approach, which holds that energy markets should not favour one power source over another.
“In light of the material difference identified by the review and the narrow range of activities of benefit to BHP from membership, BHP has reached a final view that it will cease membership of the WCA,” the miner said yesterday.
WCA chief executive Benjamin Westpac chief executive Brian Hartzer talking at a business summit in Sydney Sporton said the association’s approach to climate change and energy policy was not at odds with BHP’s.
“BHP is one of the world’s largest exporters of coal,” he said. “We have compared our position on energy and climate policies with those set out in BHP’s Industry Association Review, and believe there are no material differences.”
BHP will remain a member of the US Chamber of Commerce, saying while there were points of difference it derived benefits from the chamber’s broader activities particularly its advocacy of free trade.
BHP had threatened to leave the Minerals Council of Australia over its lobbying for new coal-fired power stations but yesterday said it would remain a member of the MCA and welcomed the group’s new energy policy.