The EU’s carbon dioxide CER futures contract for December 2012 delivery closed yesterday at AUD$3.55 (€3.02) per ton leaving Australia isolated as the only country in the world with a AUD$23.00 (€19.54) per ton carbon dioxide price – the highest in the world.
This makes Gillard’s Carbon Tax 647% higher than the EU’s price.
Maybe that’s why global companies are turning their backs on Australia?
The survey by the International CEO Forum concluded that executives were finding it much harder to make the case to their parent companies to keep investing in Australia, given the changes in local conditions.
Major concerns were the increase in labour costs, the strong dollar and the relatively low productivity growth over the past decade. "Respondents felt that some recent policies coming into effect, such as the carbon pricing scheme, have had a negative effect on investor sentiment," the report added.
Executives also criticised the level of the carbon tax given the fall in the equivalent price in Europe.
I can feel another Gillard backdown coming on.
EURAUD Exchange Rate 1.1767