Australian recyclers’ fears over emissions trading

Archiv – The recycling industry in Australia has warned that it could become a victim of emissions trading if current proposals are not amended.
According to the Australian Council of Recyclers, some recycling companies will be forced to bear the full cost of buying greenhouse permits as well as higher electricity bills whereas big emitters using virgin materials will qualify for free permits. In a submission to the government, the council’s Chief Executive Anne Prince says jobs would be lost and the industry scaled back as recycling activities – and their carbon emissions – were exported to more viable countries, such as China.Australia | The recycling industry in Australia has warned that it could become a victim of emissions trading if current proposals are not amended.
According to the Australian Council of Recyclers, some recycling companies will be forced to bear the full cost of buying greenhouse permits as well as higher electricity bills whereas big emitters using virgin materials will qualify for free permits. In a submission to the government, the council’s Chief Executive Anne Prince says jobs would be lost and the industry scaled back as recycling activities – and their carbon emissions – were exported to more viable countries, such as China.
’Nearly all the recycling industry is likely to be adversely affected by this policy including paper, glass, metals, plastics, tyres, motor vehicles and electronic waste reprocessing,’ she says. The council backs emissions trading but calls for a complementary scheme that rewards industries that recover energy and stop degradable organic carbon going to landfill.
Australian recycling giant Visy has warned that the government’s emissions trading proposal would force it to close recycling and paper mills in Melbourne and Sydney at a cost of 160 jobs. A carbon price of A$ 20 a tonne will mean it costs A$ 18.80 more to produce a tonne of recycled cardboard than for a company using non-recycled material, it estimates.
The world’s biggest zinc producer Nyrstar, which does not qualify for free permits, claims emissions trading will lead to the closure of its smelters in Tasmania and South Australia, with the loss of thousands of jobs. And Amcor Australasia’s Sustainability and Recycling General Manager Andrew Vanstone says emissions trading alone does not reflect the host of ways in which recycling helps the environment. ’It becomes more viable for recycling to be shipped overseas, converted into paper and brought back,’ he says. ’There isn’t recognition that recycling a tonne of paper means you avoid about 2.1 tonnes of carbon from landfill.’
The recycling industry in Australia boasts an annual turnover of nearly A$ 12 billion and, according to 2006 statistics, directly employs nearly 11 000 people. The Boomerang Alliance estimates that the recovery of all recyclable material going to landfill could cut Australia’s emissions by 7%.
Under the government’s emissions Green Paper, the most carbon-intensive emitters will receive either 90% or 60% of carbon permits free; there is no compensation for industries that have already taken steps to cut emissions. ’It is really tipping the scales against those who have been doing the right thing for a long time,’ argues Environment Victoria’s Campaigns Director Mark Wakeham.
The final version of the Australian government’s emissions scheme is due to be released before the end of the year.