Last week Woodside chief executive Don Voelte publicly attacked the scheme, saying it jeopardised planned LNG investments including $30 billion each for the Gorgon gas project and the company's Browse project by penalising the use of high carbon dioxide emissions.

Despite the fact Beach is not a player in LNG, managing director Reg Nelson told PNN some aspects of the scheme could affect operations in the company's Cooper Basin and other gas discoveries.

Nelson said his role on the APPEA council meant he was concerned about the scheme's impact on LNG.

"Rudd has dug himself a big hole in giving freebies to aluminium and coal industries - the really big emitters - and while I don't always agree with Voelte from Woodside he is quite correct by saying it will impact on LNG projects," he said.

"The Government has to have the right policy. We are really poised to have very large contributions to the GDP exporting LNG."

Nelson has echoed other reported industry worries that Australia could needlessly endanger its economy by making a lone-wolf stand on carbon emissions.

"If China and India and all the major polluting countries around the world don't fall into line we might be making a very brave, very noble gesture, but bloody stupid."

Nelson is a former APPEA chairman.