Incentives for reducing the emissions intensity of your business

13 Jul 2011Archived News Climate Change Matters

The Clean Energy Future announced that no maximum cap on permit allocations will apply to existing facilities. Depending on where your business sits in relation to the industry average, you may have the opportunity to secure additional permits and with this assistance, fund projects to reduce your carbon exposure. Your business could secure a competitive advantage as well as protect earnings.

Examining the financial data for energy intensive trade exposed businesses provides only part of the picture. Within sectors and individual companies, there are various emissions intensive activities that will receive either 94.5% or 66% assistance at the beginning of the scheme in order to shield them from the full price of the carbon they emit. The Jobs and Assistance program recently announced by the Government provides more details. Read more

In the graph below, Energetics considers the carbon price implications against industry average for a selection of companies. Permit allocation is based on industry average. Your performance, either above or below industry average, will determine the net impact on your business. Clearly those below industry average will fare better than their competitors above industry average. This provides clear market incentives for business improvement.


Do you know how your business activity compares to the EITE baseline?

  • How does your business perform against the industry average?
  • Do you know how your activity intensity compares to the EITE baseline?
  • Benchmark your performance – how are you ranked?
  • What competitive advantage do you possess?
  • How will you explain your performance to your investors and supply chain?

Energetics can assist in identifying the business opportunities for your emissions intensity: how you perform against the industry average, and advise on opportunities to reduce the carbon exposure of your business. We work with our clients to identify the strategic opportunities for early action before your competitors, prioritise action and investment, for example, through the development of greenhouse gas abatement cost curves and by accessing funding

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