The Australian Petroleum Production and Exploration Association warned the scheme would sink about a
third of new LNG projects.
Cement Industry Federation Robyn Bain said she was not confident about the scheme.
"My confidence is probably reflected in the dark rings under my eyes from the sleepless nights I have worrying about the (emissions trading scheme)," Ms Bain said.
Making cement uses plenty of electricity. The government has proposed giving the industry 90 per cent of permits for free at first, with that amount to decline over time.
Ms Bain said the free permits should be more permanent, and more free permits should be given out in general.
