Australian resources firms back Paris climate deal

OREANDA-NEWS. Australian resources firms BHP Billiton, Santos, AGL Energy and Wesfarmers are supporting the government's commitment to limit global warming to less than 2°C above pre-industrial levels alongside other countries, as part of an international agreement that may be reached in Paris later this year.

This is the first time that this grouping of businesses led by BHP Billiton, which is a thermal coal producer as well as oil and gas, has publicly backed an agreement under the United Nations Framework Convention on Climate Change.

"We all acknowledge that achieving this will be challenging for Australia and all countries. But agreeing on a goal and a pathway to achieving this is critical and should not be delayed. The longer we wait, the harder it will be and the more it will cost us," the companies said. The other Australian firms included Westpac, one of the country's main four banking groups, and the domestic units of conglomerates General Electric and Unilever. Together the companies account for about 12pc of Australia's greenhouse gas (GHG) emissions, which totalled 533.9mn t of CO2 equivalent for the year ending 31 March 2015.

The Australian business community have largely been silent on the issue of reducing GHG emissions to avoid the increase in concentration of CO2 in the atmosphere, which in turn will affect the world's climate if its rises above 450 parts per million (ppm) based on a broad consensus of climate scientists. The world's current CO2 concentration is about 400ppm.

Many Australian industry groups advocated for the elimination of the carbon tax, which was imposed on 1 July 2012 and repealed after the Liberal-National parties conservative coalition won the 2013 election.

BHP Billiton and Canada-based power provider SaskPower last week unveiled plans to work together on research and development of carbon capture and storage technology. Australian utility AGL Energy in April said it plans to exit all coal-fired power stations by 2050.

The support for tighter emissions policies by Australian businesses follow the elevation of Malcolm Turnbull as Australian prime minister after he challenged former leader Tony Abbott and won the backing of the majority of his parliamentary colleagues. Turnbull has previously advocated policies that would encourage a reduction in GHG emissions. This in contrast with his predecessor, who during his two years as prime minister repealed the carbon tax, reduced the renewable energy target, cut funding for renewable energy projects and research and unveiled a relatively weak post-2020 emissions reduction target.

"We remain committed to working with other companies, investors, community stakeholders and governments to support a successful outcome in Paris," the firms said. "We pledge to continue to support the ongoing development and implementation of effective international frameworks and effective domestic policy responses."