Resources Minister Matt Canavan has warned thousands of West Australian jobs could be lost if new rules for carbon emissions drafted by the State’s environmental watchdog go too far.

Senator Canavan said he believed the State risked sliding further backwards in the unemployment stakes, and that up to $70 billion in new projects could be at risk.

Tens of thousands of high-wage jobs in the construction and production phases of 16 LNG, oil, gas and petroleum projects in WA could be compromised if the projects do not proceed or are paired down as a result of radical new emissions rules.

“Western Australia needs more jobs and it needed them yesterday,” Senator Canavan, who will today address the Australian Petroleum Production and Exploration Association conference in Brisbane, told The West Australian yesterday.

“This is one of the worst things for WA to consider — new costly regulation on one of the biggest sectors creating jobs for the State. The State Government’s mismanagement of the EPA means more than 5000 direct jobs are at risk. There is a real risk of holding WA back.”

WA has the second-highest unemployment rate in the country at 6.1 per cent.

According to the Office of the Chief Economist there are 16 projects in WA either at the feasibility stage or publicly announced that would be a huge driver of jobs. These include the Browse, Scarborough, Clio-Acme, Cash Maple and Cruz LNG projects, as well as major expansions to existing projects such as Gorgon and Pluto.

Senator Canavan said many of these could be at risk because of stricter greenhouse gas guidelines being considered.

WA’s Environmental Protection Agency released draft guidelines in March and called for zero net emissions for new projects. But the initial guidelines were withdrawn after an industry backlash and on Tuesday the EPA announced 12 weeks of public and sector consultations would begin on June 10.

The EPA provides a recommendation to the McGowan Government who then decides if it becomes State law.

Senator Canavan’s concerns were echoed by the Minerals Council of Australia, who said guidelines that went too far would cost jobs.

“We would hope the WA Government will not allow actions that threaten jobs and investment in one of Australia’s resources States,” chief executive Tania Constable said.

Chamber of Commerce and Industry WA chief economist Rick Newnham said: “The WA resources sector will drive the State’s economic recovery once again, creating thousands of jobs, but this won’t be possible if a net-zero emissions policy is adopted.”

A spokeswoman for the EPA last night confirmed the impact of jobs was not factored in when formulating guidelines.

“It is the prerogative of the State Government to weigh the EPA’s environmental advice against a proposal’s social and economic impacts and benefits.”