South32 adds support for carbon pricing mechanism

DIVERSIFIED global miner South32 has reiterated its support for a carbon pricing mechanism, adding its voice to the growing chorus from corporate Australia calling for clear government policy.

“We recognise that policies need to be introduced to address climate change,” the company said in its annual climate change report. “We support policy that helps us meaningfully transition to a low carbon economy, because sharp policy change to avoid climate change and the cost of inaction could impact value for shareholders in the long- term.”

South32 underlined its belief that carbon pricing is an effective mechanism to reduce carbon emissions.

“We support carbon pricing that is globally competitive and broadbased, covering all industry sectors and all possible carbon emission sources,” the company said. “We would like to see the revenue raised from carbon pricing used to support the transition to a low carbon future.”

The miner said it had reduced emissions by 3 per cent in the 2017 financial year, com- pared to the previous year. It has previously outlined a goal of net zero emissions by 2050 as part of efforts to achieve the long- term objectives of the global Paris agreement on climate change.

South32’ s comments come amid a heightened debate over energy as the Federal Government takes a more interventionist stance in the electricity and gas markets in an effort to stave off energy shortages and spiralling prices.

Leading Australian businesses, including BHP Billiton and Origin Energy, have supported a price on carbon emissions, with many calling for government support for an emissions trading scheme to ensure energy security and continued investment in the sector.