Chairman Ryan Stokes says a carbon border adjustment mechanism is needed to stop “carbon leakage” to Asian cement groups who do not have to comply with emissions targets.after dialling back its 2025 carbon emissions targets, averted a strike at its annual meeting on Thursday.
“Without it, local industry will be significantly disadvantaged through relatively higher production costs, effectively moving manufacturing and carbon emissions offshore, contributing to carbon leakage,” Mr Stokes told the meeting. “We are not in a deflationary environment. This means the cost increases faced by our business are not going backwards,” he said.showed that services inflation was proving particularly sticky, and most economists are now betting new Reserve Bank governor Michele Bullock will lift the cash rate at the board’s next meeting on November 7.Mr Bansal also said a CBAM needed to be introduced as soon as possible to avoid leakage of carbon to Asian countries producing higher emissions.