Emissions Trading Scheme

Woodside supports the implementation of a global emissions trading scheme, whereby carbon permits must be obtained to cover the production of greenhouse gas emissions.

If, in the absence of a global agreement, the Australian Government establishes a domestic scheme, Woodside accepts that domestic production of natural gas should be covered, along with all other sources of energy.

Woodside does not support an Australian-only scheme applying to natural gas exports, when competing sources of energy from other countries will not carry this financial burden.

Australian natural gas exports compete directly with exports from countries such as Indonesia, Malaysia, Oman, Qatar and Eastern Russia – none of which have indicated a commitment to the introduction of a carbon price in the near term.

Woodside is working with the Australian Government and other interested parties to ensure the introduction of a domestic emissions trading scheme does not have the effect of constraining growth in Australian natural gas exports, resulting in a loss of investment and jobs.

Wherever Australian natural gas exports are displaced by higher emission fuels – such as domestic coal in China – global emissions will rise.

The Australian natural gas industry has a positive role to play in reducing global emissions and that the introduction of a carbon price must be managed so as not to place additional costs on Australian natural gas exports, until such time as our competitors face similar costs.