Management Services

Do you understand the cost of abatement versus permit purchase in your business?

Do you know which aspects of your business will incur increased costs?

The Federal Government has shown commitment to their Carbon Pollution Reduction Scheme (CPRS). This will be adopted in 2010.

There are two major elements to the CPRS:

•  A cap on the national level of carbon pollution
•  Trading of greenhouse gas emission permits

The annual quota of greenhouse gas emissions will reduce on an annual basis with less being available over time. Trading of the permits will be market regulated with greenhouse gas emitting operations required to purchase permits to continue operating.

More information on the current details of the CPRS, including fact sheets, is available on the Department of Climate Change website.

Businesses that generate greenhouse gas emissions will have the option to purchase permits for the tonnage of GHG emitted or undertake organisational changes to reduce the level of their emissions. Some examples of changes that would reduce emission levels include:

• Purchase of energy from low emission suppliers i.e. Electricity from Green Energy suppliers
• Reduce energy consumption within the business
• Change to suppliers with lower energy consuming production processes

How this effects Australian business

Analysis of your business processes will give you insight into the carbon intensity of your business and provide data that your clients may demand of you and enable you to gain industry advantage over competitors who do not have energy reduction strategies in place.

Despite the worst international financial crisis in 75 years, the Australian Government is committed to a national program to reduce greenhouse emissions from Australian business and recreational activities.

The effects of Climate Change are being experienced in Australia and are resulting in changed rainfall patterns, increases in average temperatures and more frequent extreme weather events. These changes are having an impact on many Australian businesses and the economy and so the Federal Government seeks to lessen the impact by addressing the issue of Climate Change through its CPRS.

All Australian businesses will have to adapt to the requirements of the CPRS and make changes to retain their presence in the global and domestic economy. Pressure to conform to the CPRS and global environmental requirements may even present savvy operations with the opportunity to lead the market and capitalise on growth in market share by taking early measures to meet climate change demands.

White Paper - 15 December 2008

The full 700 pages of the CPRS White Paper released on 15 Dec 2008 is available on the Department of Climate Change website at
http://www.climatechange.gov.au.