Caltex’s magazine for employees, franchisees & resellers
Issue 44 Aug – Sep 08
Why emissions trading must provide a level playing field for Australian refineries
Australian refineries compete with petroleum product imports from Asia – but to remain competitive the design of Australia’s emissions trading scheme must maintain a level playing field
Why emissions trading must provide a level playing field for Australian refineries
Australia needs a level playing field for carbon emissions from oil refineries! That’s the message from Caltex in response to the government’s green paper on an Australian greenhouse gas emissions trading scheme, which will start in 2010.
What are our options to reduce emissions
Cars that run on hydrogen and emit only water from their exhausts and electric vehicles recharged using renewable electricity. These future options are real, and can help ensure a low-carbon future.
The carbon pollution reduction scheme
The Australian Government has released a green paper containing policy options for an Australian greenhouse gas emissions trading scheme. It will start in 2010 and require the largest emitters of greenhouse gas emissions to purchase permits for their emissions.
Getting the jump on thieves
Thanks to a program of preventive security measures designed to protect staff and property, Caltex-operated convenience stores have experienced a marked decline in robberies and drive offs over the past year.
Clearing the air at Kurnell
What exactly is an odour audit? It’s a process that started at the Odour Research Laboratories Australia in the Sydney suburb of Newington. The villagers – all volunteers – and six EPG members were assessed here to determine their sensitivity to smells.
From the Managing Director
As you will probably have heard, the government has released its proposals for an Australian greenhouse gas emissions trading scheme to start from 2010.
The scheme will require about 1,000 businesses including oil refineries to buy permits for their emissions. Most permits will be auctioned by the government, but some “emissions-intensive trade-exposed” industries will receive free permits to help maintain their international competitiveness.
Caltex is deeply concerned that some industries, including oil refining, are currently not defined as emissions-intensive trade-exposed so will receive no free permits.
Unless the proposal is modified, our refineries will face high extra costs that can’t be recovered from customers, because our international competitors, such as big Asian refineries, will bear no carbon costs for many years.
In addition to the permits that Caltex must purchase for its own emissions, mainly from refining, the Australian government’s Carbon Pollution Reduction Scheme will require liquid fuel suppliers like Caltex to purchase permits for their customers’ greenhouse gas emissions then pass on the cost at the pump.
However, prices to motorists will not increase for at least three years because excise will be reduced “cent for cent” to offset carbon costs. The price of carbon permits for petroleum products must be highly transparent and must be exactly matched to the excise reduction to assure motorists they are not being overcharged for carbon costs.
As we discuss in this issue of The Star, we seek no special treatment and believe our refineries can be competitive in a carbon-constrained world.
Caltex supports the introduction of an emissions trading scheme for Australia and other strategies to reduce greenhouse gas emissions – but they must provide a level playing field for oil refineries against overseas competitors.
Des King