2 August 2011 – The Investor Group on Climate Change responsible for investments totalling $600 billion is concerned at what it describes as “the misleading anti carbon price campaign being run by a number of industry associations and supported by some of Australia’s largest companies”.
The IGCC said that the campaign is either deliberately misleading about the costs of the carbon price or demonstrates a lack of understanding about how the scheme operates.
IGCC members represent significant shareholdings in many of the companies behind the anti carbon price campaign.
For example IGCC members invest in all of the top 300 listed companies on the ASX and directly in hundreds of other Australian companies.
Of major concern to IGCC is what it said in as statement was the misleading description of the Australian carbon price scheme relative to action by trading partners:
- Transitional assistance to be provided to Australian industry is excluded from the industry analysis, exaggerating the cost of the scheme to Australian companies.
- Emissions coverage and financial scale of climate change action by China, the EU, the US, Brazil and many other countries dwarfs that by Australia, in line with the relative size of their economies.
- Different countries will take different policy approaches to reducing emissions. A carbon price, as a low cost policy framework, is the right approach for Australia regardless of the policy approach of other countries.
- Finally, the campaign misrepresents the importance of action by highly emitting, developed economies such as Australia to reduce their emissions. To avoid the economic consequences of dangerous climate change, all major economies must take substantial steps to reduce emissions, it says.
The IGCC has written to member companies of the associations behind the campaign to express their concerns about its purpose, the use of selective information and therefore its misleading nature.
The IGCC also restated its support for a carbon price in Australia.