Exxon favours Australia carbon tax, not market

Published: 27 Aug 2009 19:34:07 PST

MELBOURNE, Aug 28 - Exxon Mobil Corp is concerned that Australia's proposed carbon-trading regime will lead to unstable pricing and favours a revenue-neutral carbon tax, the head of the oil major's Australian unit said on Friday.

"It's important to understand that allowing the cost of carbon to be determined by traders on a carbon exchange carries the potential to make carbon costs inherently unstable," Exxon Mobil Australia Chairman John Dashwood told a conference.