Australian business heavyweight drives push for global carbon price

Glasgow: High-profile Australian business executive Andrew Liveris is preparing to lead a new push for a price on carbon, arguing that neutralising emissions by 2050 will require political consensus to finally swing behind the polarising policy.

Liveris, a former chief executive and chairman of the Dow Chemical Company and co-architect of Prime Minister Scott Morrison’s so-called gas-led recovery, recently entered discussions with John Kerry, US President Joe Biden’s climate envoy, over how the world should design and implement carbon-pricing regimes.

“Governments are asking business to lead the way because they can’t get consensus within their own parties, let alone other parties,” Liveris told The Sydney Morning Herald and The Age at the COP26 summit.

Corporate heavyweight Andrew Liveris backs carbon pricing as a way to lower emissions.Credit:Bloomberg

“Pretty much everyone in the business community has realised that the best way to make the most of the proclamations and progress here in Glasgow is to align behind a common way to price carbon, AKA an emissions trading scheme.”

The corporate heavyweight’s remarks echo those of former Australian finance minister Mathias Cormann, who has offered to help create an international carbon pricing system through his new role as the secretary-general of the Organisation for Economic Co-operation and Development.

The Morrison government has ruled out a carbon scheme and Labor is still wary of proposing one again given it contributed to the party’s thumping 2013 election loss.

However, Liveris said Australia would have the best chance of achieving net zero emissions by 2050 if an emissions trading scheme complemented the federal government’s focus on new technology.

“Can technology road maps scale new affordable, reliable energy without [a] carbon price? I give it a good chance, but a carbon price will make it even better.”

The US also has no national carbon pricing regime, although some states such as California do. Liveris said he was a fan of California’s model and the scheme operating in the European Union for the past 16 years.

“It’s one of these issues that, if not well explained, there will be a lot of resistance,” Liveris said.

“If a carbon price is interpreted as increased cost to the consumer, that’s a non-starter. Or if a carbon price mechanism is seen as enriching bankers, that’s a non-starter, too.

“So I’m not going to say this is low-hanging fruit. But I am saying it’s the next logical step.”

Donald Trump tapped the Australian to head the American Manufacturing Council in 2016, labelling him “one of the most respected businessmen in the world”.

Barack Obama appointed him co-chair of his Advanced Manufacturing Partnership in 2011, and he is close to figures in the current Democratic administration.

Liveris expects his work on carbon pricing might look similar to his effort over the past year to rally political and corporate support for Biden’s historic $US1.2 trillion ($1.62 trillion) infrastructure bill.

“My convening power is known by the government,” he said. “And if I’m asked to please help get the private sector to lead on carbon pricing, then I’ll say yes.

US President Donald Trump with Liveris at a rally in 2016.Credit:AP

“Whether we like it or not â€" and I think it’s true in Australia â€" the business community is often seen as aligned to the right. That has actually never been my stance. I’m aligned to the centre to get the best of both.

“I’m not changing stripes. I’m just trying to get the answer that’s best for the country.”

Liveris last year chaired the federal government’s manufacturing taskforce that recommended a gas-driven strategy to create jobs in the sector.

The Saudi Aramco and IBM director is one of several senior Australian business figures in Scotland for the Glasgow climate talks. Santos chief executive Kevin Gallagher, Fortescue chairman Andrew ‘Twiggy’ Forrest, Rio Tinto chief executive Jakob Stausholm and BHP chief commercial officer Vandita Pant have also joined the talks.

“I’ve always thought that business, government and civil society has been coming into a triangle,” Liveris said. “We always thought government would be at the apex of the triangle, that they would set the rules and business would follow.

“In climate discussions, the triangle has flipped.”

Get weekday updates on the climate summit that will shape our future. Sign up to our COP26 newsletter here.

Share this post