Coal industry has climate deal concerns

16 Dec 2008, 12:12 pm   -   Source: AAP
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The coal industry is concerned it will not get enough financial assistance out of emissions trading.

The coal industry is concerned it will not get enough financial assistance out of emissions trading.

Under the federal government's plan released on Monday, coal mining companies will get $750 million to adjust to the scheme.

There is also assistance worth $3.9 billion to coal-fired electricity generators.

Ralph Hillman, executive director of the Australian Coal Association, said on Tuesday the plan was "a step in the right direction" but the coal industry should get more assistance.

Unlike the aluminium and liquefied natural gas (LNG) industries, coal mines will not qualify for free permits under the scheme because they do not reach emissions thresholds.

Putting a carbon price on coal mining would disadvantage Australia compared with its competitors in the developing world, who would not have to pay a carbon price, Mr Hillman said.

"This will... lead to a drift in investment away from coal mining in Australia, so fewer jobs in coal mining in Australia... unless some sort of assistance is given to even the playing field," he told ABC radio.

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