May 5, 2009

Alcoa on CPRS Changes

Alcoa of Australia supports the introduction of the CPRS provided significant concerns with several matters of detail are resolved.

These include:
  • All emissions intensive trade exposed (EITE) components of our business receive at least 90% assistance;
  • There is no decay of EITE allocations until our competitors adopt a comparable carbon price;
  • There is resolution of inequities in the Electricity Allocation Factor (EAF) such that it does not prejudice the Victorian aluminium smelters.
 
We believe yesterday’s changes are a step in the right direction, but the key changes noted above are still required for us to support the CPRS. 
 
We do not, at this time, support throwing out the existing CPRS and starting again – our strong preference is for the Government and Opposition to work together to refine the CPRS to address the shortcomings described above.
 
 
Learn more about Alcoa and climate change at www.alcoa.com.au/climatechange