Friday, 23 September 2011

Opportunities in the carbon tax

Summaries - Australian Financial Review
14 September 2011, Page: 63

There are a number of positives to come out of the carbon tax legislation, including opportunities for businesses to become more efficient and more profitable. While energy bills may increase 10% to 15%, they have already increased 17% to 20% in the past three years without a carbon tax. The cost of raw materials such as cement and iron ore will not greatly increase. The $800 million Clean Technology Investment Program will provide opportunities for companies looking to develop innovative clean energy and energy efficient products. The National Energy Savings Initiative, which was recommended by the Prime Minister's Task Group on Energy Efficiency, should be pursued.

The Clean Energy Finance Corporation will have $5 billion at hand for businesses with projects that will reduce carbon emissions and promote clean energy. Only 10% of the energy potential from a lump of coal ever makes it to your light bulb, and Energetics has had great success advising companies on how to reduce their consumption. Dow Chemicals, Nissan USA, Danone and 3M have all slashed their energy intensity by 50%, and Sydney Water has cut its emissions by 40%. Heavy rail and road transport should be equally exempted from diesel tax.

Jonathan Jutsen, executive director, Energetics.