Carbon capture laws dodge biggest question: Who carries liability?

The Rudd Government's much-vaunted 'world first' legislation setting up a regulatory framework for carbon capture and storage dodges the biggest regulatory issue the industry faces - who will carry liability in case the carbon dioxide leaks.

Australian Greens Senator Christine Milne has made additional comments to the Senate Inquiry Report into the Bill tabled today, setting out the Greens position that the taxpayer must not be saddled with the risk while coal companies walk away with the profits.

Senator Milne said "Who will carry the liability if and when stored carbon leaks? The Government apparently thinks this question doesn't need to be answered, but it is quite obvious that that approach would leave everybody - supporters and opponents of goesequestration alike - in limbo.

"If Prime Minister Rudd thinks that his audience in New York will be impressed by his claim to have developed a comprehensive legal framework for geosequestration, he will have to be prepared for some tough questions on liability. The world will not be coming to us for advice if we squib on the biggest question.

"The Greens will work hard to ensure that the coal multinationals do not get away with privatising their massive profits and socialising their risk with geosequestration.

"My additional comments to this report set out a proposal under which companies seeking to bury carbon dioxide would post a bond to cover their future liability in case the climate-changing gas leaks after the company moves on.

"That would be a reasonable and responsible approach to take, ensuring that those seeking to make profits also carry the risk.

"While the Coalition predictably wants the taxpayer to carry the can for coal corporations, the Government, inexplicably, thinks it is OK to leave the liability question unanswered. I am committed to working with the Government on amendments to make sure ordinary Australians don't end up hurt by the short-sighted greed of the coal sector.

"A sensible plan for the future would see Australia pitched as a global solar hub, taking advantage of our world's best solar scientists. It would see a forward-thinking strategy to help coal communities move into a green-collar future.

"Instead, Mr Rudd is deepening Australia's economic vulnerability by locking us into a risky, unproven technofix that is already being leapfrogged by the truly clean renewable energy and energy efficiency alternatives."

Contact: Tim Hollo on 0437 587 562

Tim Hollo
Media Adviser
Senator Christine Milne
ph: (02) 6277 3588
mob: 0437 587 562

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