Regulatory uncertainty creating carbon risk for business

Press Release
20th October 2006

Climate Institute Chief Executive, Corin Millais told business leaders attending last night’s Australian launch of the Carbon Disclosure Project that the Federal Government should listen to the concerns of Australian businesses about a lack of regulatory certainty in this country in relation to greenhouse gas emissions.

“Businesses are reporting that there is a growing investment risk associated with carbon, but in Australia the future is unclear with no direction from the Australia Government on carbon pricing or greenhouse gas emissions reductions,” Mr Millais said.

“The top 150 Australian and New Zealand companies were surveyed for the first time this year by the Carbon Disclosure Project and 94% of the companies responding recognise the potential for climate change to impact future earnings, liabilities or the company’s general risk profile.”

“There is a Federal Government policy vacuum when it comes to managing greenhouse gas emissions and addressing climate change, and the agriculture, energy, tourism and finance sectors are already feeling the effects of that policy failure.”

“Tougher greenhouse regulations will help, not hinder the Australian business community. It’s time for a policy change, and public opinion on the issue has reached a peak concern.”

“Recent economic analysis shows the longer the delay in taking action, the more expensive it becomes for business, consumers and the Australian economy,” said Mr Millais.

The Climate Institute is a Gold Sponsor of the Australian launch of the Carbon Disclosure Project in Sydney, and is pleased to support the initiative during the first year in which the top 150 Australian and New Zealand companies have been included in the international project representing investors with assets worth US$31 trillion ($195 billion from Australia and NZ).

The ANZ CDP survey respondent companies have a market capitalisation of 63% of the ASX 100 and 71% of the NZ50. The global CDP survey covers 30% of the world’s investment capital.

Contact – Sky Laris, The Climate Institute 0410 963 047

www.climateinstitute.org.au