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Australian chemistry industry supports swift repeal of the carbon tax

The Plastics and Chemicals Industries Association (PACIA) is calling on the new Senate to vote in favour of the repeal of the carbon tax in its first sitting, which commenced today.

“The high fixed carbon price is having a material impact on the competitiveness of the Australian chemistry industry and its supply chains, adding significant costs to its energy and gas bills,” said Samantha Read, PACIA CEO.

“The new Senate must vote to repeal the carbon tax in order to avoid further impacts to Australia’s $40bn chemistry industry. Any further delay will increase uncertainty and costs of doing business in Australia.

“The Australian chemistry industry operates in a global market, but Australia’s high fixed price on carbon far exceeds that of our key trading partners. For many in the industry, this means absorbing the carbon price, at a time when the industry and broader manufacturing sector is already under significant cost pressures.

“For our industry, it’s not just about the cost impacts of the carbon tax on energy. It is also impacting the cost of feedstock. This feedstock provides critical inputs to products that society uses every day and that make an enormous contribution to our quality of life. For instance, using chemistry our industry transforms natural gas into durable water pipes that deliver water from source to tap.

“The Australian chemistry industry supports action to mitigate the impacts of climate change. Our industry plays a key role in this mitigation through the development of products, technologies and solutions that improve efficiency and help reduce global greenhouse gas emissions.

“In fact, as demonstrated in McKinsey’s 2009 independent carbon life cycle analysis of the global chemical industry, the sector is a net greenhouse gas saver via the products and technologies it makes. The study found that for every unit of greenhouse gases emitted directly and indirectly by the chemical industry, the industry enables 2-3 units of emission savings via the products and technologies provided to other industries and consumers.

“We look forward to working with the Government to ensure that climate change policy is effective in reducing global greenhouse gas emissions, while allowing this industry to fulfil its role as a key contributor to the Australian economy,” said Ms Read.

Download the ‘PACIA Strategic Industry Roadmap

Media contact:  Claire Selby, [email protected], 0448 028 876.
Released 7 July 2014


PACIA is the pre-eminent national body representing Australia¹s $40bn chemistry industry, whose businesses directly employ 60,000 people and contribute approximately 11.5% of total Australian manufacturing production. PACIA members comprise a broad range of companies positioned across the entire value chain.  Members include chemicals manufacturers, importers and distributors, logistics and supply chain partners, raw material suppliers, plastics fabricators and compounders, chemicals and plastics recyclers and service providers to the industry.  These businesses range from small family-owned companies and innovative medium-sized enterprises, to leading national and multinational enterprises.

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