Australian carbon tax may bring investors to Asean
The Australian government's proposed plan to impose carbon tax on the 500 largest emitters operating in the country will have a negative impact on Thai companies investing there and some might choose to relocate to Southeast Asia.
The new tax is likely to be implemented by the middle of next year if the law is approved by parliament this year.
Banpu, which completed its takeover deal of Australia's Centennial Coal last year, may have to pay A$23 (Bt695) per tonne of carbon emitted. The tax scheme will affect only companies that have a presence in Australia, and exclude imported products.
Brian Morris, managing director of M&C Energy Australia, said yesterday in Bangkok that if the Australian government passed the law to impose carbon tax on the 500 biggest polluters in November this year, the law will be implemented in July 1, 2012. The tax rate of A$23 per tonne of carbon emitted will rise by 2.5 per cent a year before moving to a market-based trading scheme in 2015.
The tax scheme aims to reduce carbon emissions by 5 per cent off the 2000 level, by 2020. If the government does nothing, the emis?sions are expected to be 22 per cent higher than the 2000 level
Not only industries like steel, coal mining and aluminium, but also electricity generators and power plants will be affected by the measure, he said.
"The electricity cost in Australia over the next decade will increase by 150 per cent from the current level. Australia may become less attractive for investment.
"If the rest of the world does not go the same way [impose carbon tax] as Australia, manufacturers in Australia are likely to relocate their investments to other sites. Southeast Asia is also a likely destination," he said.
Besides, it will be an opportunity for clean-energy business in Southeast Asia, as the companies operating in Australia will buy carbon credits from the Clean Development Mechanism programme in this region.
