The Australian Industry Group claimed today that the emissions trading scheme, the CPRS (Carbon Pollution Reduction Scheme) should be delayed because businesses were not able to put in place adequate measurement systems to manage their emissions.
This claim is not supportable. Here are the facts:
There are less than 1000 companies that need to put in place measurement systems to manage the CPRS, and this requirement will not touch most AIG members.
Affected companies have known for some time that they have to report under the already existing National Greenhouse and Energy Reporting System (NGERS), which was introduced by the Howard government before there was any CPRS planned. There is little if any extra impost for directly affected companies to participate in CPRS.
The cost of reporting for the vast majority of companies is a small proportion of their cost of fossil energy, and many companies will save more from the introduction of effective measurement systems than the entire cost of the system.
Energetics provides energy and greenhouse information management services, including ancillary bill processing services, to many of Australia’s leading organizations. For most companies, the cost of using our services to provide their information management and reporting is less than 1% of the cost of the energy consumed. This is hardly the sort of impost that would justify deferring a scheme designed to protect our planet from potentially dangerous greenhouse emissions.
The straight billing savings Energetics achieves for customers from the bill processing service alone typically exceeds the cost to these businesses of the entire information management service (in many cases by a factor of 2 to 3). In addition, Energetics’ customers are also achieving significant additional savings through the improved management of energy use, facilitated by the improved management of information.
The old adage that ‘to manage you must measure’ is equally true in the world of carbon and energy.
It is true that some companies have not invested in adequate measurement systems to manage their energy costs, and NGERS forces these companies to measure their energy use more effectively which benefits most businesses. This is a good news story for business, as companies are being prepared to effectively manage increasingly expensive energy, as well as the related carbon emissions.
Those companies that have been so slow to act in the past will not be advantaged by delaying the CPRS to postpone implementing measurement systems. And if there was a 2 year delay in its introduction, the very same companies would be complaining again in 2 years time because they will still not be ready.
There is no doubt that the CPRS will impose costs across the economy for carbon pollution, and these costs will be felt more during a recession. However, it is apparent to climate scientists that the risks of delaying action further significantly exceed the benefit of any delay. The Australian Industry Group is grasping at straws here and their claims are not credible.
To arrange an interview with Jonathan Jutsen please contact Helen Wetherell on (02) 9929 3911
Jonathan Jutsen, Executive Director
Energetics Pty Ltd
Jonathan Jutsen, founder of Energetics
Internationally recognized as a leader in the energy efficiency field, Jonathan Jutsen’s name is synonymous with energy and carbon management. Since 1984 when he founded Energetics, Jonathan has played a major role in transforming the energy management industry in Australia and his 27 years of innovation and policy leadership has been recognized by a series of awards including engineer of the year and a Millenium medal.
Jonathan has been a prominent public speaker on climate change and resource efficiency topics and is invited to deliver keynote speeches at major seminars across the country and he regularly addresses Boards and executives.
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