The Australian Petroleum Production & Exploration Association (APPEA) said the Australian Government’s Emissions Reduction Fund (ERF) should recognise the important contribution that the country’s gas industry is making toward reducing emissions both in Australia and Asia.
“The Australian gas industry’s contribution to global emissions reduction should not be hindered by regulations that focus solely on its local emissions,” said APPEA Chief Executive David Byers in a media release.
Nor should it be disadvantaged against international competitors that do not face similar costs.”
In its submission to the ERF Green Paper APPEA said Australia’s climate change policy should encourage rather than impede in developing the country’s vast gas resources, and as such the design of the ERF is of critical importance in a way that it should be broad and efficient as possible.
“This mechanism cannot impose a one-size-fits-all approach. Liquefied natural gas (LNG) plants are purpose-built to process widely varying gas resources for the needs of different customers,” said Mr Byers.
“In applying such a mechanism to new plants, the baseline should be determined after several years of production so that the operator and the regulator can draw on several years of operational experience.”
“APPEA looks forward to working with the Department of Environment to develop a potential model that would be suitable for the oil and gas industry. The mechanism should be applied only to emissions above business-as-usual; it should not be used as a mechanism for raising revenue.”
Mr Byers added that the ERF design should encompass emissions across the Australian economy, including the sectors that do not currently report under the National Greenhouse and Energy Reporting System.