BHP Threatens Exit from Coal Lobby, Chamber of Commerce -- Update
20 December 2017 - 2:49AM
Dow Jones News
By Adam Clark
BHP Billiton Ltd., the world's largest Western mining company,
is threatening to leave the World Coal Association and U.S. Chamber
of Commerce over disagreements on climate policy, the latest
commodity firm to react to pressure on global warming.
The British-Australian company--among the world's biggest coal
producers --said it disagreed with the association's call for
Australia to abandon its clean-energy targets and promote the use
of lower-emission coal. BHP said it differed from the Chamber of
Commerce's characterization of the Paris climate agreement as
ineffectual and the business group's opposition to taxing carbon
emissions.
"We believe the Paris Agreement provides a solid long-term
foundation for further progress in the global response to climate
change," BHP said Tuesday. The company pledged earlier this year to
review its memberships in industry associations that hold public
stances on climate and energy policy.
BHP's announcement comes amid changing public stances on
climate-change policy from the world's biggest energy companies as
they try to present themselves as part of the solution for
governments and consumers demanding more environmentally friendly
energy.
A consortium of 10 big oil companies--including Royal Dutch
Shell PLC, BP PLC and Saudi Arabia's national energy firm--formed
the Oil and Gas Climate Initiative to pool knowledge and
collaborate on reducing greenhouse gas emissions. Exxon Mobil Corp.
last month joined Shell and six other major oil companies in moving
to reduce pollution from natural gas production.
In response to BHP's announcement, the World Coal Association
said it was disappointed and felt BHP's review didn't accurately
reflect its views. The London-based World Coal Association is a
global lobbyist for coal producers, with its members accounting for
20% of global coal production, including Anglo American PLC and
Glencore PLC.
"The WCA has always supported a balanced approach that
integrates climate and energy policy; working toward a low-emission
future for coal. We hope to be able to continue working with BHP on
this basis in the future," said the association's chairman, Mick
Buffier.
The Chamber of Commerce said it looked forward to discussing the
issues with BHP.
"The chamber believes that the climate is changing, and that man
is contributing to these changes," the group said in an email. "We
also believe that technology and innovation, rather than
unachievable federal mandates, offer the best approach for reducing
greenhouse gas emissions and mitigating the impacts of climate
change."
The chamber has warned that U.S. commitments under the Paris
agreement could raise energy prices for Americans. President Donald
Trump has said he would end the American commitments made at the
Paris agreement if he couldn't negotiate more favorable terms.
BHP said it has reached a preliminary view to leave the World
Coal Association, but invited the group to respond by March 31
before the company makes a final decision on its membership.
The miner said only that it was "considering" its continued
membership in the Chamber of Commerce and would talk to the
Washington-based group before a decision on March 31.
BHP said it also identified differences with the Minerals
Council of Australia, but has decided to remain a member of the
body. It said it would, however, request that the council refrain
from policy activity in areas where it disagrees, and review its
membership of the body if this hasn't happened within a reasonable
period.
The Australasian Centre for Corporate Responsibility, a
nonprofit group that advises on ethical investments, offered
tempered praise for BHP's announcement. Executive Director Brynn
O'Brien criticized BHP's continued Minerals Council of Australia
membership but called the overall message "an emphatic market
signal that the era of aggressive anti-climate lobbying is no
longer acceptable."
(END) Dow Jones Newswires
December 19, 2017 10:34 ET (15:34 GMT)
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