Climate Change Minister Senator Penny Wong's release of the Carbon Pollution Reduction Scheme Green Paper (CPRS Green Paper) has provoked much discussion in the media and the political sphere. The CPRS Green Paper runs to over five hundred pages and lays out the framework the Government intends to use for its emissions trading scheme. It allows for submissions to be made to the Government by interested parties with their views on the proposed framework before the release of the White Paper towards the end of this year.
What is the CPRS and does it cover SMEs?
Firstly, the CPRS is the name the Rudd Government has given to its cap-and-trade emissions trading proposal. The Government sets a limit on total greenhouse gas emissions (i.e. the 6 gases covered by the Kyoto Protocol, called carbon dioxide equivalent). The Government then issues one permit for each ton of carbon dioxide (CO2) equivalent emitted by Australian businesses. The CPRS applies to some business sectors, and those sectors will have to purchase permits from the Government. With such importance on the amount of emissions involved, there will be strict monitoring guidelines for businesses affected. However those requirements will only apply for businesses emitting more than 25,000 tonnes of C02 equivalent. Only around a thousand companies meet this threshold in Australia, mainly in the mining and electricity sectors. Hence SMEs will not have to buy permits directly or monitor their emissions under the scheme.
When will it start and what does it cover?
The CPRS is due to commence by 2010. The Liberal-National Opposition is opposed to it starting until 2011 or 2012. The final start date will depend on these political negotiations but ClimateEasy advises SMEs work on the basis of emissions trading commencing in 2010.
The CPRS Green Paper includes transport, electricity, including coal-fired power stations and mining as industries covered under the scheme. Agriculture will be excluded initially but may be included in 2015.
If SMEs are not in the scheme, what difference does it make?
While SMEs are not in the scheme, it is inevitable that in the short to medium term there will be price rises in those areas affected by the scheme.
The main practical effect for SMEs will be a rise in electricity prices. At present, while petrol prices are largely controlled by the global oil price, electricity prices are set by state regulators. The CPRS will see electricity prices from sources other than renewable energy increase by approximately 16% on the introduction of the scheme. This is the result of power companies passing on the permit cost to consumers.
Electricity price rises will also result in higher costs for manufactured goods, so businesses in the retail industry will likely see a rise in costs up the supply chain.
The Government has foreshadowed offering business tax breaks to compensate for these increases but is yet to provide detail. The Government is currently collecting data through the Small Business Climate Initiative and it is anticipated that it will release a program specifically targeting small business in due course.
Although transport is included in the scheme, the CPRS states that a 'cent-for-cent' cut in excise will prevent permit prices increasing fuel prices until 2013. It is anticipated that moves will be made towards reliance on gas-based fuels for transport which produce lower emissions.
If the scheme doesn't start to 2010, what's all the fuss about the Green Paper?
The Green Paper is the first major step in the design of the CPRS. It will be followed by a White Paper and then the draft legislation will be considered by Parliament. In order for the scheme to commence in 2010, the legislation must be passed in mid-2009 to give business notice of the new conditions and to implement the various regulatory bodies required.
The Green Paper is the first main phase of consultation. However while it includes a list of affected industries and proposed timelines for permit auctioning, it does not include economic modelling supporting these measures nor does it include a scientific assessment of the required targets.
The Green Paper is also very vague about energy efficiency policy measures and specific assistance provided to SMEs - the only mention of assistance is to owners of coal-fired power stations. Accordingly, it is imperative that SMEs make their views known to the Government to maximise their chances of getting appropriate assistance, both in terms of rebates for energy prices and energy-saving technology.
Submissions can be forwarded to:
Email: emissionstrading@climatechange.gov.au
Carbon Pollution Reduction Scheme Green Paper Submission
Department of Climate Change
GPO Box 854
Canberra ACT 2601
Australia
Submissions close on 10 September 2008.
If you would like advice on your submissions or assistance drafting, contact ClimateEasy for a quote.
Tuesday, August 26, 2008
Climate and Sustainability Links
Government Departments
Department of Environment and Climate Change (Federal)
Carbon Pollution Reduction Scheme
Department of Environment and Climate Change (Federal)
Carbon Pollution Reduction Scheme
Wednesday, July 9, 2008
SMEs and Sustainability
Sustainability and climate change are common buzzwords in Australia today. We demand action from our governments on these issues and this demand will soon move to the business sector. Clients and customers will demand businesses have sustainable energy use practices and policy measures such as emissions trading and tougher energy efficiency regulations will force business to take action.
Yet according to the CPA Australia Small Business Survey 2007, 52% of small business planned to take no action on climate change, while another 17% intended to do so and had not gotten around to it. Knowledge of emissions trading and preparation for its introduction is even lower. According to a survey by the Australian Institute of Management, between 80 and 90% of small and medium businesses have done no planning to prepare their business for the introduction of emissions trading. Scarcely 40% of businesses are even aware of the scheme's slated start date of 2010.
This lack of preparation and understanding could have potentially catastrophic consequences. With small businesses typically the most sensitive enterprises to cost increases, the expected rise in energy and fuel prices could easily make the difference between profit and oblivion for unprepared SMEs.
Even among businesses that have taken action, most of the measures such as energy conservation policies, purchasing energy efficient appliances or using alternative energy have been taken in a piecemeal fashion. Not one energy conservation measure reported in the CPA survey had been adopted by more than 20% of businesses. This lack of coordination means many businesses are unnecessarily exposed to risk by not incorporating all the options that may be available to their business.
Sustainability requires a wholistic vision of your business - its goals, its market ambitions and its culture - to provide effective and long-lasting solutions. However SMEs often lack the resources and time to fully realise their possibilities to grow in a sustainable way. ClimateEasy can provide you with the tools you need, time, knowledge and innovative thinking, to make your business thrive in this new climate.
Yet according to the CPA Australia Small Business Survey 2007, 52% of small business planned to take no action on climate change, while another 17% intended to do so and had not gotten around to it. Knowledge of emissions trading and preparation for its introduction is even lower. According to a survey by the Australian Institute of Management, between 80 and 90% of small and medium businesses have done no planning to prepare their business for the introduction of emissions trading. Scarcely 40% of businesses are even aware of the scheme's slated start date of 2010.
This lack of preparation and understanding could have potentially catastrophic consequences. With small businesses typically the most sensitive enterprises to cost increases, the expected rise in energy and fuel prices could easily make the difference between profit and oblivion for unprepared SMEs.
Even among businesses that have taken action, most of the measures such as energy conservation policies, purchasing energy efficient appliances or using alternative energy have been taken in a piecemeal fashion. Not one energy conservation measure reported in the CPA survey had been adopted by more than 20% of businesses. This lack of coordination means many businesses are unnecessarily exposed to risk by not incorporating all the options that may be available to their business.
Sustainability requires a wholistic vision of your business - its goals, its market ambitions and its culture - to provide effective and long-lasting solutions. However SMEs often lack the resources and time to fully realise their possibilities to grow in a sustainable way. ClimateEasy can provide you with the tools you need, time, knowledge and innovative thinking, to make your business thrive in this new climate.
Contact ClimateEasy Now!
Contact ClimateEasy at climateeasy@gmail.com or 0423501224 to book your consultation or seminar today.
We offer a free 30 minute on-site obligation-free consultation. If you sign up for one of our packages, you will receive a free follow-up consultation six months after the delivery of our recommendations.
We offer a free 30 minute on-site obligation-free consultation. If you sign up for one of our packages, you will receive a free follow-up consultation six months after the delivery of our recommendations.
The ClimateEasy Advantage
Why should your business choose ClimateEasy?
The ClimateEasy Advantage lies in our flexibility, exclusive focus on the small and medium business sector and ability to provide easy to understand solutions at reasonable rates.
Our methods are both rigorous and innovative. We keep you abreast of the latest developments in climate change and sustainability yet remain conscious of the traditional bottom line pressures that small business faces. We can advise on a range of risks such as emissions trading, compliance requirements and greenwashing.
Business operators often cannot afford to spend hours researching suppliers or implementing new procedures so we can provide staff training, programme design and product sourcing services to implement our recommendations. We can also facilitate your business getting credit for its environmental awareness through assistance on accreditation applications.
We offer a free initial consultation to discuss your business and how ClimateEasy can help. We also offer a free follow-up consultation to discuss your business' progress and offer additional consultancy at reasonable rates.
Because we deal exclusively with small and medium business, we treat our SME clients as our number one priority. You will never be just a minnow on our client list.
Choose ClimateEasy for your business. Because sustainability need not cost your business the Earth.
The ClimateEasy Advantage lies in our flexibility, exclusive focus on the small and medium business sector and ability to provide easy to understand solutions at reasonable rates.
Our methods are both rigorous and innovative. We keep you abreast of the latest developments in climate change and sustainability yet remain conscious of the traditional bottom line pressures that small business faces. We can advise on a range of risks such as emissions trading, compliance requirements and greenwashing.
Business operators often cannot afford to spend hours researching suppliers or implementing new procedures so we can provide staff training, programme design and product sourcing services to implement our recommendations. We can also facilitate your business getting credit for its environmental awareness through assistance on accreditation applications.
We offer a free initial consultation to discuss your business and how ClimateEasy can help. We also offer a free follow-up consultation to discuss your business' progress and offer additional consultancy at reasonable rates.
Because we deal exclusively with small and medium business, we treat our SME clients as our number one priority. You will never be just a minnow on our client list.
Choose ClimateEasy for your business. Because sustainability need not cost your business the Earth.
Our Products
ClimateEasy offers small and medium businesses a range of energy and risk management solutions that are cost effective and easy to understand.
ClimateEasy Standard Assessment
Our Standard Assessment includes a 30 minute free on-site consultation discussing the dynamics of your business and assessing the sustainability of your business' existing energy usage practices and procedures. We use our specially designed Risk Assessment methodology (based on the Australian Standard AS 4360) to explain the risks that environmental issues pose to your business. Your consultant will provide you with a range of mitigation and adaptation recommendations with advice on their implementation.
ClimateEasy Implementation Package
ClimateEasy is about making adapting your business to the climate change reality easy. We offer an implementation package where we can implement recommendations such as staff training and seminar programmes, sustainable practice tools and sourcing of climate friendly appliances and power supplies.
Accreditation Applications and Enquiry Submissions
ClimateEasy can also assist you with applications for accreditation for environmentally friendly schemes such as Greenpower and facilitate your business tapping into advice from other professionals. We can also advise on and draft submissions for SMEs to a range of enquiries on matters affecting their business, such as climate change and regulation.
SME ClimateEasy Seminars
ClimateEasy can offer clear and detailed seminars on climate issues and sustainability and how these issues affect SMEs. These seminars demystify this complex policy challenge into language and outcomes that business owners can apply in the real world to understand the challenge of climate change and what it means for their business. Seminars cover policy and legislative developments plus the implications of current issues.
Contact us at climateeasy@gmail.com today to book your consultation or seminar
ClimateEasy Standard Assessment
Our Standard Assessment includes a 30 minute free on-site consultation discussing the dynamics of your business and assessing the sustainability of your business' existing energy usage practices and procedures. We use our specially designed Risk Assessment methodology (based on the Australian Standard AS 4360) to explain the risks that environmental issues pose to your business. Your consultant will provide you with a range of mitigation and adaptation recommendations with advice on their implementation.
ClimateEasy Implementation Package
ClimateEasy is about making adapting your business to the climate change reality easy. We offer an implementation package where we can implement recommendations such as staff training and seminar programmes, sustainable practice tools and sourcing of climate friendly appliances and power supplies.
Accreditation Applications and Enquiry Submissions
ClimateEasy can also assist you with applications for accreditation for environmentally friendly schemes such as Greenpower and facilitate your business tapping into advice from other professionals. We can also advise on and draft submissions for SMEs to a range of enquiries on matters affecting their business, such as climate change and regulation.
SME ClimateEasy Seminars
ClimateEasy can offer clear and detailed seminars on climate issues and sustainability and how these issues affect SMEs. These seminars demystify this complex policy challenge into language and outcomes that business owners can apply in the real world to understand the challenge of climate change and what it means for their business. Seminars cover policy and legislative developments plus the implications of current issues.
Contact us at climateeasy@gmail.com today to book your consultation or seminar
Saturday, July 5, 2008
ClimateEasy - Sustainability does not have to cost your business the Earth
Increasingly environmental issues are playing a fundamental role in our society. They are set to affect not just our quality of life but the way we do business, from the cost of energy and fuel to the choices that customers and clients make. In recent days, emissions trading has been headline news. Experts predict that the reforms brought by an emissions trading scheme will make the GST 'a walk in the park' by comparison.
Yet small and medium businesses remain unaware of the potential risks this new environment poses to their business. There is little understanding of the ramifications of a 'post-carbon' economy or preparation to insulate SMEs from those risks.
ClimateEasy provides the tools you need to protect your business and allow it to thrive in the age of sustainability. We use methodology based on the Australian standard to analyse your business' goals both in terms of continued profitability and environmental sustainability. We draw on a range of resources to provide real solutions to climate change and sustainability issues. We understand both the vulnerability of small business and the need for cost effective action.
Business operators do not have hours to devote to sustainability and climate research. Yet such work will be essential to understand the new environment. ClimateEasy does the hard work for you and makes sustainability for your business easy.
Yet small and medium businesses remain unaware of the potential risks this new environment poses to their business. There is little understanding of the ramifications of a 'post-carbon' economy or preparation to insulate SMEs from those risks.
ClimateEasy provides the tools you need to protect your business and allow it to thrive in the age of sustainability. We use methodology based on the Australian standard to analyse your business' goals both in terms of continued profitability and environmental sustainability. We draw on a range of resources to provide real solutions to climate change and sustainability issues. We understand both the vulnerability of small business and the need for cost effective action.
Business operators do not have hours to devote to sustainability and climate research. Yet such work will be essential to understand the new environment. ClimateEasy does the hard work for you and makes sustainability for your business easy.
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