CLIMATE CHANGE

Following on from an earlier post , I thought I might elaborate on the five key questions that all industries need to answer in the face of emissions trading and why they are more helpful than any economic modelling to determine the strategy and risks a company may be prepared to take in the climate change debate.
 
1. Is it cheaper to buy carbon or reduce it?
 

To many people, this question seems like a no-brainer: either you would build such a house because of the market advantage it provides, or alternatively, you wouldn’t build it because the extra costs reduce your competitiveness in the market.
 
Actually, I don’t think it’s either of these ‘no-brainer’ answers. Instead, I think the no-brainer response is simpler: to ensure you are still building houses in 5 years.
 

Last week the Federal Government released its long awaited economic modelling demonstrating the impact of climate policies on the Australian economy. The modelling is one of a number of inputs the Government is considering to help it set climate policies and emission reduction targets.