The Impact of Emissions Trading Scheme on Business in Australia

7/27/2019 The Impact of Emissions Trading Scheme on Business in Australia

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Emissions Trading Scheme

Impact on business in Australia


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Independent Inspections

P: 1300 857 149

F: 1300 857 150M: 0402 259 479

[email protected]

www.iigi.com.au

www.fwrgroup.com.au

www.inde endentcertification.com.au

The Impact of Emissions TradingScheme on business in Australia

Risk Management and Lessons Learned,The Ten Minute ArgumentBy Peter Greenham
http://www.fwrgroup.com.au/http://www.fwrgroup.com.au/http://www.fwrgroup.com.au/mailto:[email protected]://www.iigi.com.au/http://www.fwrgroup.com.au/http://www.independentcertification.com.au/http://www.independentcertification.com.au/http://www.fwrgroup.com.au/http://www.iigi.com.au/mailto:[email protected]


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Independent Inspections Pty Ltd

P: 1300 857 149

F: 1300 857 150M: 0402 259 479

[email protected]

www.iigi.com.au

The Impact of Emissions Trading Scheme onbusiness in AustraliaIn Summary:

The risk is with some accountants that dont understand the impacthave allowed a 10 Per cent increase in costs as a guestimate withoutundertaking any basis on the impactSupply Chain Management will be the issue in reducing Risk tobusiness operations. In the Blue Economy
mailto:[email protected]://www.iigi.com.au/http://www.iigi.com.au/mailto:[email protected]


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Introduction (cont.)The national and international climate

policy landscape is continually evolving.All companies will be at risk in the near

future if they do not plan for a carbon

constrained future.

You may have existing legislation under

which your company must comply, oryou may need to prepare for the future.

The main question businesses are now

asking is: How do we carbon proof

ourselves and minimise the risks that the

costs of compliance will have on ourbusiness.

The Government has laid out a plan to

move to a clean energy future through:


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Climate Change AuthorityThe Authority is designed to:

ReviewAustralias progress towards its

emissions reduction targets

Recommend a 2020 emissions reduction

target

Recommend caps (or limits on emissions) for

the first five trading years of the carbon pricing

mechanism

Recommend a national carbon budget andindicative national emissions trajectory


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Climate Change AuthorityThe Authority are to consider the level of globalaction to reduce greenhouse gas emissions,

including More than 90 countries, covering 80

per cent of global emissions, have 2020

emissions reduction goals under the United

Nations Framework Convention on Climate

Change.

The report is due to be released by February

2015


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Legislation Changes under the ETS Climate Change Authority Act 2011

http://www.comlaw.gov.au/Details/C2011A00143

Energy security fund http://www.climatechange.gov.au/reducing-carbon/energy-security-package

Clean Energy Act 2011


Fuel tax act 2006

http://www.comlaw.gov.au/Details/C2013C00036

Excise tariff amendment bill 2012


Clean Energy (Excise Tariff Legislation Amendment) Bill 2012

http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r482

2

Australian National Registry of Emissions Units Act 2011

http://www.comlaw.gov.au/Details/C2012C00418

Excise tariff act 1921

http://www.comlaw.gov.au/Series/C1921A00026
http://www.comlaw.gov.au/Details/C2011A00143http://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.comlaw.gov.au/Details/C2011A00131http://www.comlaw.gov.au/Details/C2013C00036http://www.comlaw.gov.au/Details/C2012A00081http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r4822http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r4822http://www.comlaw.gov.au/Details/C2012C00418http://www.comlaw.gov.au/Series/C1921A00026http://www.comlaw.gov.au/Series/C1921A00026http://www.comlaw.gov.au/Details/C2012C00418http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r4822http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r4822http://www.comlaw.gov.au/Details/C2012A00081http://www.comlaw.gov.au/Details/C2013C00036http://www.comlaw.gov.au/Details/C2011A00131http://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.climatechange.gov.au/reducing-carbon/energy-security-packagehttp://www.comlaw.gov.au/Details/C2011A00143


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Emissions Trading SchemeWhy did we do it ??Australia in the International ContextAustralia was involved in the early negotiations for the

United Nations Framework Convention on Climate

Change (UNFCCC) in the context of the 1992 Rio Earth

Summit and became one of the first countries to sign the

UNFCCC. Australia signed the Kyoto Protocol on 29 April1998 but did not ratify it until 12 December 2007.

Under these international agreements, Australia is

required to limit its emissions to 108% of 1990 levels

during the Kyoto Protocols first commitment period (2008-

2012) and, at Copenhagen in 2009, pledged to reduce its

emissions to 5% below 2000 levels by 2020.


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Carbon FootprintThe calculation of the carbon footprint of an organisation or

product should be performed in accordance with the following

principles, which are based upon those outlined in the GHGProtocol and adopted under the NGER System.

These principles are consistent with those outlined under the other

Australian and international standards referenced throughout the

Standard, including the AS ISO 14064 and ISO 14040 series.

The Emissions are broken into 3 areas:

Scope 1 Emissions: The release of Greenhouse Gas into theatmosphere as a direct result of a activity.

Scope 2 Emissions: The release of Greenhouse Gas as a result ofone or more activities that generate electricity, heating, cooling or

steam that is consumed by the facility but does not form part of thefacility.

Scope 3 Emissions : The release of Greenhouse Gas into theatmosphere that occurs outside the boundary of a facility as a

result of the activities of the facility and are not scope 2 emissions.


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Carbon FootprintA graphical image shows Scope 1,2 and 3 Emissions

below:


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What is a Responsible Business? Responsible business practice is the recognition of, and response to the

interconnectedness and interdependence of business within our world of

which the global financial crisis and climate change are consequences.

Responsible business practice advocates that the true costs and

obligations of business and organisational activity are accounted for - bothfinancial and non-financial and require a process of accountability,

transparency

(Supporting Local Community and Business Economy)


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How do you Demonstrate Being a ResponsibleBusiness? ISO 26000 is the Standard for Corporate and Social Responsibility and is

embedded by United Nations Global Compact Principles.

The UN Global Compact asks companies to embrace, support and enact,

within their sphere of influence, a set of core values in the core areas of :

Human Rights

Labor

EnvironmentAnti-Corruption

Independent Inspections Pty Ltd is one of 37 Australian companies that

has supported the Global Compact


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The United Nations 10 PrinciplesHuman Rights Principle 1: Businesses should support and respect the protection of internationally

proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

Labour Principle 3: Businesses should uphold the freedom of association and the effective

recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and

occupation.

Environment Principle 7: Businesses should support a precautionary approach to environmental

challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly

technologies.

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including

extortion and bribery.


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Responsible Business Rating? ISO 26000 Validation of the current company procedures implementation

and methodology can work for your organisation. It provides a progressivesystematic management approach that encompasses best practice for

application , monitoring and communication of progress as a responsible

business to the local community and business economy

Businesses depending on size operate at 3 main levels in demonstrating

CSR and Sustainability and these can be categorised as:o Basic: May have some community involvement but not recorded,o Intermediate: Community engagement, records and reporting,o Advanced: Corporate Reporting to United Nations and GRI

Guidelines


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Independent Inspections Pty LtdIndependent Inspections Pty Ltd

www.iigi.com.au

www.fwrgroup.com.au

www.independentcertification.com.au

Mr. Peter Greenham

Qualifications:

- Diploma of Civil Engineering

- Associate Diploma of Laboratory

Operations

- Diploma of Quality Management

- Diploma of Business- Lead Environmental Auditor

- Diploma of workplace training and

Assessment

- NATA Assessor

Your Carbon Auditors

P: 1300 857 149

F: 1300 857 150

Sales Team

[email protected]

Mr. Peter Greenham

M: [email protected]
http://www.iigi.com.au/http://www.fwrgroup.com.au/http://www.independentcertification.com.au/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.independentcertification.com.au/http://www.fwrgroup.com.au/http://www.iigi.com.au/

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The Impact of Emissions Trading Scheme on Business in Australia