BHP Billiton to withdraw from World Coal Association, US Chamber of Commerce

BHP Billiton said on Tuesday that it is considering leaving the World Coal Association and the US Chamber of Commerce.

The mining giant said a review of 21 industry association memberships found that it had seven material differences in position over climate and energy policies across three associations: the Minerals Council of Australia, the United States Chamber of Commerce and the World Coal Association.

BHP will remain a member of the MCA, given the high level of benefit it derives from membership. However, it did point out that the MCA has sometimes argued that energy policy should prioritise reliability and affordability over 'other policy goals'.

"When discussing emissions reduction in the energy sector, the MCA has highlighted the costs associated with meeting Australia’s international commitments at the expense of addressing the importance of reducing emissions," said BHP.

"We believe climate policy and energy policy are inextricably linked, and that energy reliability, energy affordability and emissions reduction should be considered on an integrated basis."

BHP has decided to withdraw from the US Chamber of Commerce after it criticised the Paris climate agreement and due to its opposition to carbon pricing.

"Emissions reductions are necessary to mitigate climate change. An effective global framework to reduce emissions should use a portfolio of complementary measures, including a price signal on carbon, implemented in a way that addresses competitiveness concerns and achieves lowest cost emissions reductions," BHP said.

As far as the WCA is concerned, it noted that the organisation has called for policy changes that are more technology-specific when it comes to climate and energy policy frameworks.

"We believe energy markets should be both fuel and technology neutral, and should not artificially y favour one type of technology over another," BHP said.

Geoff Healy, chief external affairs officer, said that while no industry association represents the views of any single member, they are important for sharing best practice, the development of technical standards and policy and to bring together technical expertise and experience.

“Active participation within industry associations is an opportunity for BHP to improve its own performance and to support industry as a whole in making a positive contribution.

“This review makes clear the principles for our ongoing participation in industry bodies. While we won’t always agree with our industry associations, we will continue to call out material differences where they exist and we will take action where necessary, as we have done today.

“Importantly, we will also continue to communicate our own views directly to investors, governments and civil society and we will redouble our efforts to engage, clearly and constructively, with our industry associations to positively influence the position they take on matters important to our company.”