Coal mining assistance
As part of the Clean Energy Future plan, the Australian Government has committed to providing assistance to the coal mining sector through the Coal Sector Jobs Package (CSJP) and the Coal Mining Abatement Technology Support Package (CMATSP). Together these measures will help the coal sector transition to a carbon price.
Coal Sector Jobs Package
The coal mining industry differs from other major industries in that the majority of the emissions come from 'fugitive' methane and carbon dioxide emissions released from the coal as it is mined. For geological and geographical reasons, the amount of fugitive emissions released from different coal mines is highly variable. In Australia, the majority of the coal mining industry is not emissions-intensive (i.e. the coal is not 'gassy' and does not release a high amount of fugitive emissions) and would not face a significant carbon cost under the Clean Energy Future plan.
However, the Australian Government has recognised that there are a small number of highly emissions intensive 'gassy' underground mines that have high fugitive emissions and will face a significant carbon cost under the Clean Energy Future plan. The Australian Government has committed to the establishment of the CSJP to provide these mines with transitional assistance which will allow operators time to investigate and implement abatement opportunities and ease their transition to the introduction of the carbon price.
The CSJP will provide assistance over six years to the most emissions-intensive coal mines. The Australian Government has allocated $1.3 billion to this program.
Eligible coal mines will be mines that had a fugitive emissions intensity in 2008–09 of at least 0.1 tonne of carbon dioxide equivalent (tCO2-e) per tonne of saleable coal produced.
Assistance will be provided to eligible coal mines for up to 80 per cent of their fugitive emissions exposure above the 0.1 tCO2-e per tonne of saleable coal threshold. Assistance will be based on production up to a cap of base period production levels (the higher of 2007–08 or 2008–09).
Like the Jobs and Competitiveness Program, the CSJP will provide assistance based on historical emissions intensity data. This will reward coal mines for reducing pollution.
The Coal Sector Jobs Package will not assist new mines or expansions of production in existing mines. The carbon price will provide incentives for expanded coal production in Australia to be sourced from lower-emissions coal seams.
Coal Mining Abatement Technology Support Package
The CMATSP will provide transitional assistance to help the coal industry implement carbon abatement technologies. Assistance will be provided in the form of grants on a co-contribution basis. The Australian Government has allocated $70 million over six years to this program.
Other support for the coal sector is also provided by through the Department of Resources, Energy and Tourism.