BHP's (ASX:BHP) Australian President, Geraldine Slattery, has issued a stark warning that a decline in national competitiveness is jeopardising Australia’s energy transition and decarbonisation ambitions.
Speaking at the Minerals Council of Australia's Minerals Week in Canberra, Slattery argued that without urgent reforms to corporate tax rates and the reduction of regulatory "red tape," vital global capital will likely drift toward more attractive overseas markets.
She highlighted that while global demand for copper is forecast to surge by 70% by 2050—driven by the rapid expansion of electric vehicles, solar farms, and data centres—Australia's ability to capture this windfall depends entirely on investment decisions made today.
Slattery noted that being in the "middle of the table" is a dangerous position in a tight global contest for mobile capital.
She identified business taxation and the exhaustive timeframes associated with regulatory approvals as primary headwinds, particularly for the energy sector.
While acknowledging the federal government's commitment to maintaining the fuel tax credit and ongoing reforms to the EPBC Act, Slattery maintained that the cumulative cost of compliance remains a significant barrier.
At the time of reporting, BHP's share price was $48.70.