Goyder says global carbon pricing needed

Wesfarmers boss Richard Goyder says Australia must move to a global carbon pricing model. Source: AAP

WESFARMERS chief Richard Goyder says Australia needs to price its carbon in the same way as the rest of the world.

Australia's carbon price is currently fixed at $23 per tonne and will rise incrementally over the next two year before linking with the European scheme.

European prices are market based and this month have been trading around three euros ($A3.84)

Mr Goyder said that while a fixed price provided certainty, Australian companies do not want to pay significantly more for carbon than the rest of the world.

"I guess what business wants is certainty, but at the moment the certainty we've got is a price that's higher than the international price," he said.

"I think business would welcome a more market-based price, considering the cost pressures we've got at the moment."

Mr Goyder said Australia would have to move to the European carbon-pricing model in the very near future.

"I think eventually Australia will have to be in step with global pricing on carbon and I think the sooner the better," he said.

However, Mr Goyder would not say which political party's policy on carbon pricing he supported.

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