APPEA chief executive Belinda Robinson said an Australian emissions trading scheme must not undermine the viability of Australian emissions-intensive industries that compete with projects in countries that do not have Kyoto emissions reduction obligations.
"Any setback for Australia's LNG industry would not only be a setback for Australia's economy, but it would also deny energy-hungry countries in the Asia-Pacific region a cleaner energy source," she said.
Robinson said it was an ETS should encourage the deployment of the best available low-cost, low-emissions fuels and technologies.
"The upstream petroleum industry supports other policy measures to encourage research and development of new opportunities in next-generation low-emissions technologies," she said.
But these policy measures should be mutually reinforcing with an ETS and should only exist where ETS market failure can be demonstrated, Robinson said. Furthermore, the ETS and other policy measures should be aimed at delivering emissions reductions at least cost.
APPEA's submission also called for an open and transparent process of consultation with stakeholders on economic modelling associated with Australia's greenhouse policy response.
Robinson's comments follow earlier concerns raised by Australian LNG developers who warned that emissions trading could cripple the competitiveness of local LNG projects against those in Asia, Africa and the Middle East.
Woodside chief executive Don Voelte had also voiced his concern that the trading scheme could amount to a carbon tax not faced by Australia's major LNG competitors.
