Isra-Mart srl : Orica breaks ranks on carbon tax

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Isra-Mart srl news:

ORICA Ltd chief executive Graeme Liebelt says the company could do more to reduce its greenhouse gas emissions and the introduction of a carbon tax would "probably" encourage it to make changes.

The explosives and fertiliser manufacturer emits 2.3 million tonnes of carbon dioxide (CO2) equivalent per annum, but says further carbon emission reductions are possible.

"We know that we can put in place further abatement measures to reduce our carbon dioxide emissions," Mr Liebelt told media today.

"We've abated some of our plants and we can abate further."

When asked whether a carbon tax would encourage the company to take those steps, Mr Liebelt responded saying, "Yes, it probably would."

"But we would prefer an emissions trading scheme, rather than a carbon tax for a range of economic reasons," he said.

Mr Liebelt said a carbon price of between $20 to $30 a tonne would cost the business $40 million to $60 million annually.

He said some of the extra cost could be passed onto customers in the short term, but the company may have to absorb some of the cost when existing contracts expired.