We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Association of Mining and Exploration Companies (AMEC) appears to have a negative position on climate policy, with high overall engagement. While the association has communicated broad top-line support for climate action, it has negatively engaged on a number of specific climate-regulations in Australia and continues to advocate a role for fossil fuels in the energy mix.
Top-line Messaging on Climate Policy: AMEC’s top-line messaging on climate change appears to have become increasingly positive in recent years. AMEC stated support for Australia’s net-zero greenhouse gas emissions target in its 2023 Federal Policy Platform Paper, published in January 2023, and also appeared to indicate support for the Paris Agreement in its February 2023 consultation submission to the Safeguard Mechanism Reforms Position Paper. In the same submission, AMEC also stated support for a national approach to the regulation of emissions reduction in Australia, however, it qualified this support by opposing sub-national climate regulation.
Engagement with Climate-Related Regulations: AMEC has adopted a largely negative position on a number of Australian climate change policies in 2022-23. In its September 2022 submission to the Safeguard Mechanism consultation, AMEC appeared to support the reforms with major exceptions. While the association stated support for declining baselines in line with Australia’s emissions reduction targets, it also supported the continued generation of Australian Carbon Credit Units by Safeguard facilities and appeared to suggest that it would be more “economically efficient” to reduce emissions from other sectors of the economy rather than focus on industries captured under the Safeguard Mechanism. AMEC likewise appeared to oppose key components of the reforms in its February 2023 consultation submission, advocating for a larger reserve to be built into each facility’s baseline decline rate and also supporting the ‘widest uptake of support measures possible’ for trade-exposed facilities. AMEC also advocated against proposed reforms to the WA Environmental Protection Authority’s Greenhouse Gas Emissions Environmental Factor Guideline in a September 2022 consultation submission, arguing that greenhouse gas emissions regulation should be the mandate of the Commonwealth Government.
Positioning on Energy Transition: AMEC adopts a largely negative position on the energy transition, advocating a continued role for fossil fuels in the energy mix in recent years. In a June 2022 media release, CEO Warren Pearce appeared to support a continued role for coal in the energy mix, emphasizing the ‘important role’ it continues to play in Queensland’s economy. AMEC also appeared to support the continued development of Australia’s gas reserves in its 2023 Federal Policy Platform Paper, stating that it supports a commitment to a ‘use it or lose it’ policy as a mechanism to drive development of Australia’s minerals and gas reserves. The association has also repeatedly advocated for the continuation of Australia’s diesel fuel tax credit, both in statements from CEO Warren Pearce in a November 2021 Mining Weekly article, and in its January 2023 Federal Policy Platform Paper.
In the same Policy Platform Paper, AMEC also issued support for an expanded role in the energy mix for hydrogen and nuclear energy, however its position on decarbonizing hydrogen production, as well as how it sees nuclear power in the context of a wider transition to a zero-emissions energy system, was unclear. Additionally, AMEC CEO, Warren Pearce, also appeared to communicate broad support for the electrification of transportation in an October 2022 press release supporting the Australian Government’s National Battery Strategy and National Electric Vehicle Strategy.