The Green Building Council of Australia officially welcomed the Australian Government’s carbon price scheme but says more needs to be done to capitalise on the opportunities of Australia’s built environment.
However, the Housing Industry Association says the carbon tax will have painful repercussions for the industry and for housing supply and affordability.
Some construction materials companies were saying they will be unfairly disadvantaged by the proposed arrangements, and were planning to raise their prices accordingly.
HIA chief executive, association, Graham Wolfe said: “Unfortunately, jobs in Australia’s residential building sector and building product manufacturing sector will be lost under this carbon tax.”
“Competing against imports from non-CO2-e taxing countries, Australian building product manufacturers face a cost collage as the carbon tax is passed on down the line into the inputs for each production and fabrication phase.
“Building materials and products, such as kitchen cabinets and benchtops, windows and doors, and wall linings and finishes, will increase in price, or be sourced from overseas — or both.”
“If production goes offshore, so too will Australian jobs, and more than likely without any net global CO2-e benefit.
GBCA’s chief executive, Romilly Madew said: “The Australian Government’s proposed carbon price of $23 per tonne has been long-awaited by the Green Building Council of Australia (GBCA), as we believe it is one of the most efficient and cost-effective ways for Australia to meet its international carbon reduction targets, while at the same time boosting investment in green technologies and stimulating new sectors of the economy,”
“However, as buildings are responsible for 23 per cent of our greenhouse gas emissions, a carbon price scheme must be complemented by a range of integrated measures that support greater energy and building materials efficiencies within the property and construction industry.”
“As we have long maintained, these complementary measures should include energy efficiency incentives such as tax breaks and white certificates, investment in research, development and commercialisation of low-emissions technologies, and mandatory disclosure.
“Strong collaboration between government, industry and non-government organisations has also been identified as required to overcome the current market failures and skills gaps,” Madew said.
This is why the GBCA applauded the release of ‘Securing a Clean Energy Future’, which includes measures such as:
- a national energy savings scheme
- the ‘Living Greener’ website
- the Clean Technology Program
- energy efficiency information grants
- the Low Carbon Communities initiative
- Low Income Energy Efficiency Program
The GBCA believes these initiatives will indeed help kick-start the low carbon economy and provide the support and incentives necessary for the built environment.
The GBCA recently released a report, Putting a price on pollution: what it means for Australia’s property and construction industry, in early July. The paper outlines the challenges and opportunities that a carbon price presents for a range of stakeholders within the property and construction industry, including owners, developers and manufacturers for whom the $9.2 billion in industry assistance and adjustment will be vital.
Brickworks issued a press release saying it was disappointed with the tax proposal, warning it will negatively impact housing affordability by increasing building product prices in Australia.
Over the last decade, Brickworks says it has voluntarily reduced its carbon emissions by 40 per cent through the closure of old, inefficient brick plants and investment in new plants.
The company predicts the proposed $23 per tonne carbon tax would have an impact of $12.8 million on the Austral Bricks division earnings before interest and tax ($9.0 million after tax) in its first year of operation.
Brickworks intend to increase prices to fully recover the cost of the tax with price rises of up to 6 per cent.
As products that are classified as trade exposed such as steel and cement, will be heavily compensated, the company salsy it will lead to price benefits when compared to clay bricks that will not receive any compensation.
