ST. LOUIS, July 18, 2014 /PRNewswire/ — Peabody Energy (NYSE: BTU) today praised the action of Australia’s Parliament and Prime Minister in repealing the carbon tax, which has hurt consumers via high electricity costs and damaged the economy.
“The Australia Government’s reversal of the carbon tax is a lesson in leadership for the modern world,” said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. “We encourage U.S. policymakers to take the same path and reject the Administration’s costly proposed rules on power plants. Technology, not caps and taxes, is the key to long-term improvement in carbon emissions.”
In turning around the carbon tax, Australian Prime Minister Tony Abbott said: “Today, the tax that you voted to get rid of is finally gone. A useless, destructive tax which damaged jobs, which hurt families’ cost of living and which didn’t actually help the environment is finally gone.” The government has estimated that the repeal would save families A$550 per year.
Australia elected a new government last year with a mandate to repeal the carbon tax, which has caused an estimated $15 billion in economic impact in its first two years of implementation, according to government estimates.
Nations continue to push back against onerous carbon legislation and renewable mandates that exacerbate energy inequality, raise electricity costs and reduce economic growth. Europe’s renewable strategy is being pared back, the continent is threatened by Russia’s energy security challenge, nations such as Japan are using significantly more coal, and multiple nations lead the world in economic growth using coal-fueled electricity.
Peabody believes that U.S. leaders can learn valuable lessons in rejecting defacto carbon taxes and onerous renewable standards. The U.S. Chamber of Commerce estimates that the Administration’s proposed U.S. carbon regulations would cost the economy $50 billion per year.
The proposed rules would significantly increase power prices, costing each American household thousands of dollars over time. A Heritage Foundation study reports the cost to an average family of four at $1,200 per year of lower income and spending power. Low-cost electricity is essential at a time when a record 115 million Americans qualify for energy assistance and 48 million live in energy poverty.
Coal fuels the lowest cost electricity in the United States: The states that don’t use coal wrestle with electricity costs that are nearly twice as much as the states that predominantly use coal for electricity. Coal is the world’s fastest-growing major fuel set to surpass oil as the world’s largest global energy source in coming years.
Peabody Energy is the world’s largest private-sector coal company and a global leader in sustainable mining, energy access and clean coal solutions. For further information, visit PeabodyEnergy.com and AdvancedEnergyForLife.com.