BHP in talks with government to help formulate carbon policy

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BHP in talks with government to help formulate carbon policy

By Peter Ker

BHP Billiton has revealed it is working with the Abbott government on the development of carbon policy, and it praised the Coalition's ''direct-action'' policy for protecting companies that compete in the international arena.

BHP chief executive officer Andrew Mackenzie told shareholders at the company's annual meeting in Perth on Thursday: ''We are looking very keenly with them as to what we can do with their direct-action measure that will, I think, protect the competitiveness of trade-exposed industries across Australia - not just ours - and really understand how we can drive emissions reductions.

Praise for "direct action": BHP Billiton CEO Andrew Mackenzie.

Praise for "direct action": BHP Billiton CEO Andrew Mackenzie.Credit: Ken Irwin

''So far I am finding these discussions [with the government] very constructive, and we have a number of ideas.''

Under Tony Abbott's $2.55 billion direct-action policy, companies can win money for projects that reduce emissions, so BHP could, in theory, apply for such funding.

Mr Mackenzie's predecessor, Marius Kloppers, was outspoken in calling for a price on carbon in 2010, but BHP was ultimately unhappy with the ''carbon tax'' that Labor designed, on the grounds that it disadvantaged Australian companies competing against international rivals that were not subject to such a tax.

Mr Mackenzie said he couldn't see the point in taking action on carbon emissions without a global approach.

''There's no point in giving up [carbon dioxide] in Australia only to find that it's going to be emitted less efficiently elsewhere,'' he said.

''There's no point giving up [carbon dioxide], we would argue, without continuing to maintain a strong economy.''

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Climate issues dominated discussion at Thursday's BHP meeting, with a climate campaigner unsuccessfully applying for a seat on the board of directors, and a large number of climate-related questions emerging from shareholders.

The meeting also coincided with the release of a report claiming BHP - a significant producer of coal, oil and gas - was the 19th-biggest emitter of carbon emissions in the history of the world.

The report was published by a US group called the Climate Accountability Institute.

BHP chairman Jac Nasser launched a vigorous defence of the miner's record on climate change, saying it had been proactive on the issue for close to two decades.

There's no point in giving up [carbon dioxide] in Australia only to find that it's going to be emitted less efficiently elsewhere.

Mr Nasser reiterated that the company accepted the ''mainstream science'', which suggests that man-made carbon emissions are causing climate change.

''Action on climate change is not a fad or a fashion for us,'' he said. ''We are not blindfolded to the risks ahead of us … some form of carbon pricing is necessary.''

Mr Nasser said BHP also had investments in lower-carbon energy forms, such as gas and uranium, which would benefit from any global shift towards cleaner energy types.

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''If you are a true investor in the resources industry, this is your dream company to invest in, with the background of climate change and the environment,'' he said.

with Peter Hannam

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