This tax may reduce our CO2 output more than expected as...

This tax may reduce our CO2 output more than expected as companies join those already flocking offshore taking all the jobs that will be needed when the mining booms slacks off.

bundy spot on it might make a small difference to Australia's CO2 emissions. But global CO2 emissions will increase.

Bluescope Steel has about 40 manufacturing facilities in Australia, and employs roughly 10,000 people. They also have many factories overseas in countries that don't have a CO2 tax. Due to the high A$ and competition, they struggle to break even now, before a CO2 tax.
Bluescope Global Operations

Onesteel employs about 11,000 Australians in the many manufacturing facilities across Australia, and also over 20 factories overseas in countries that don't have a CO2 tax.
Onesteel Global Operations

BSL and OST are the biggest steel makers we have and neither are in business for charity, they exist solely to make a profit.

IMO if a CO2 tax is introduced, both companies will wind down their manufacturing in Australia, and ramp up overseas. Why would they stay here? Over 20,000 Australian skilled jobs down the S Bend, and a small reduction of Australia's CO2 emissions. Australians will of course have to import steel and pay more for it.

Both companies will benefit greatly from extremely cheap labour in the overseas facilities with no CO2 tax, they will also save on shipping costs etc. and will build more and more steel factories overseas as their profits grow.

Which means global CO2 emissions will increase by much more than Australian CO2 emissions are reduced.

So the end result will be:

*Over 20,000 Australian jobs lost.

*A small reduction of CO2 emissions in Australia.

*Both companies prosper overseas.

*Australians have to import steel (oh and there had better not be any wars involving Aussies, be hard to fight one with no Aussie steel makers).

*Global CO2 emissions will increase.