Australia: The Australian government’s ‘unwillingness’ to impose a carbon levy on imported cement, lime and clinker is threatening decarbonisation efforts and could cost up to 1400 jobs, according to the Financial Review.
The Cement Industry Federation, which represents local producers Adbri, Boral and Cement Australia, has said that the absence of a carbon levy on imports from countries with less robust climate commitments paved the way for the offshoring of local manufacturing, a process known as ‘carbon leakage’.
It said “Not addressing the issue of carbon leakage in a timely manner will be detrimental to Australian cement and lime manufacturing and could lead to the unnecessary loss of key Australian cement and lime facilities."
Imports currently account for over 40% of domestic clinker consumption and originate largely from southeast Asia. In 2023, an energy expert was appointed by the government to assess the feasibility of an Australian carbon border adjustment mechanism, with a final recommendation expected to be delivered in 2024. However, only an interim report was released in November 2024, with the final advice now reportedly due after the election in May 2025.
