We'll stick with fossil fuels: miners

AUSTRALIA'S mineral sector is prepared to "shoulder a huge responsibility" in dealing with global warming in the wake of the Stern report on climate change.
But the Minerals Council refuses to accept that the problem can be addressed by substituting some energy sources - such as the highly polluting fossil fuels making up much of Australia's energy supply - for others, saying all forms will be needed.
The industry accepts the need for some price signal to penalise the use of carbon-based fuels, but warns against Australia going it alone, saying that would only undermine the nation's economy.
Business also welcomed the report, with the head of one of Australia's largest companies, Insurance Australia Group's Michael Hawker, backing the report's call for a tax or system to take into account the cost of carbon emissions.
While environment groups welcomed the report for bringing economics into the debate about climate change, Greenpeace said it was "time to close down (the) coal industry".
Minerals Council chief executive Mitch Hooke said energy security and climate change were among the greatest challenges confronting the world.
The minerals industry wanted to be part of the solution, he said, acknowledging that "we shoulder a huge responsibility given that there is universal agreement that fossil fuels will continue to comprise in the order of 80-85 per cent of the world's primary energy supply".
But he stressed the world would need all energy sources to meet growing demand, including fossil fuels, nuclear and renewables.
Mr Hawker - a member of the Business Roundtable for Sustainable Development - said the Stern report should prompt major change around the world.
"Trying to quantify the economic cost of climate change is very critical for businesses to be able to adapt, because they will now be under pressure from investors and boards and governance processes as to how to manage the impacts of climate change on their businesses," Mr Hawker said.
He backed a "carbon tax" to make companies pay for the damage inflicted on the environment by the carbon their activities release into the atmosphere.
"The business community in whole would react positively (to a carbon tax)," he said. The main challenge was working out when the tax would take effect and how to know whether a particular activity was a net contributor to carbon emissions or not.
Australian Chamber of Commerce and Industry chief executive Peter Hendy also backed the report. "We agree that international collaborative action must include all aspects of climate change policy including pricing and technology," he said. "ACCI has long recognised the benefit of creating a worldwide carbon price signal through an appropriate and comprehensive emission trading scheme that includes China, India and the US."
The Australian Medical Association said the report was a timely reminder of the devastating health impact that climate change could have.
"Climate change is the biggest environmental and health challenge of our time," said AMA president Mukesh Haikerwal.
"We need leadership from our governments with the support of business and the community to reduce greenhouse gas and air pollution to protect the health of all Australians and the wider global community."
Engineers Australia said the report brought into sharp focus the need for urgent and "even dramatic action". Chief executive Peter Taylor said: "Whilst we welcome the Government's initiatives on the nuclear debate and clean technology incentives, as a developed nation we have a responsibility to lead by example so that the major greenhouse gas producers in both developed and developing countries will be persuaded to follow suit."