Des King, Managing Director and CEO of Caltex Australia, claimed sound policies regarding climate change are critical to the viability of Australian industries. Addressing the Committee for Economic Development of Australia (CEDA) in Sydney, King expressed his concerns regarding the effects of ‘green’ policies on the oil industry.

The government’s green paper proposes allocating only 20 per cent of permits for free to emission-intensive industries, however this is just half of the permits that they are required to hold for their emissions.

“High costs for carbon emission permits would threaten the viability of the Australian oil refining industry. Similar outcomes are faced by many industries,” believes King. “An explanation is needed of how the $10 billion of total revenue from the sale of emission permits will be distributed,” King said.

“Many of Australia’s refineries, perhaps all, could be competitive in the long run. But, for this to occur, what the refining industry needs is a level playing field, not an emission trading scheme that imposes a large carbon cost on Australian refineries while our international competitors bear no carbon costs.”