Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Hansard source

The vast majority of coalmines in Australia are not emissions intensive, and will not face materially increased costs under a carbon price. Treasury modelling projects that under a carbon price the coal industry will grow. In addition, there is currently a $99 billion pipeline of investment into the coalmining sector, with 93 new projects either just completed, under construction or awaiting approval.

Therefore, the government recognises that there are a small number of gassy underground mines that have high methane emissions and will face increased costs under a carbon price. We have addressed this in the coal sector jobs package. After taking into account the assistance for gassy mines, the average impact of the carbon price on coalmines will be reduced. So the answer to your question is that we believe strongly that we are able to manage our plan to reduce the emissions from the coal sector in Australia over time. We will be able to do this with the carbon price in place.

Going back to the point you made about statements from the President of the United States, we warmly welcome the US President's commitment to reducing emissions across the US. We know that the President said that the science is unequivocal and that the US plans to take a leadership role in acting, and, most importantly, that the best policy for reducing pollution is through a market mechanism.

Any claim, as we have heard from those opposite, that the President does not support emissions trading, is just one more mendacious claim to add to a growing list of— (Time expired)