Media release
For immediate release 19 September 2012
Liable entities to be better informed in carbon decisions Australia’s peak body for carbon market professionals has announced that a consortium led by Baker & McKenzie and ClimateWorks Australia with additional support from Seed Advisory Pty Ltd and ClimateMundial has been commissioned to undertake its latest research project.
Carbon Decision Making and Risk Management: A Guide for Business is the latest project to be added to the Carbon Market Institute’s comprehensive suite of publications which are designed to take liable entities along a journey to becoming sophisticated carbon market participants. “The recent introduction of Australia’s carbon pricing mechanism presents a new range of issues to be managed by liable entities,” says Carbon Market Institute markets and research manager Lloyd Vas. “For the first time, these businesses are compelled to examine their operations to determine how they can meet their emissions compliance obligations at least cost,” he says. “What’s important about this research project is that it highlights strategic decisions not just at management level, but raises key questions about managing carbon exposure for boards. There is an opportunity in this new market for liable entities to outperform their sector peers through least cost compliance, which will in turn enhance shareholder value,” says Vas. This research project aims to provide liable entities with a decision-tree type framework to analyse their business operations from a carbon cost perspective. It will also assist liable entities with what is essentially a ‘make or buy’ decision. Performing a carbon price sensitivity analysis against a range of scenarios, the research will provide the reader with the methodology and a software tool to assist in making carbon management decisions. “Liable entities will have the opportunity to see the software tool first hand at Carbon Expo Australasia in Melbourne,” says Vas. “A practical workshop on 7 November will showcase the tool and delegates will be provided with a better understanding of the ‘make or buy’ decision and the risks involved.” As 34 local governments are liable under the carbon pricing mechanism, the report will include a chapter specific to local government with a particular focus on CFI landfill projects. The report will conclude with an in-depth analysis of the risk management options where business has decided to employ a ‘buy’ strategy.
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Media release 19 September 2012
Carbon Decision Making and Risk Management: A Guide for Business is the first in a new suite of three CMI ‘Guides for Business’. In the coming months, the Institute will also publish An Analysis of Carbon Units: A Guide for Business and Carbon Procurement and Trading: A Guide for Business. This latest project builds on the success of the Institute’s 2011-12 program of research: •
Australia’s Clean Energy Legislative Package: A Guide for Business, authored by Baker & McKenzie
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Implementing the Carbon Farming Initiative: A Guide for Business, authored by Norton Rose and RAMP Carbon
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Carbon Market Integrity: A review of the Australian Carbon Pricing Mechanism, authored by Bond University and peer reviewed by Baker & McKenzie
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Reporting and Accounting Requirements for the Australian Carbon Market: A Guide for Business, authored by Ernst & Young and the University of Melbourne
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Evolution of the Australian Carbon Market: Lessons from commodity and financial markets, authored by PwC
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For more information, please contact: Communications Manager Gabrielle Callahan Phone: 03 9245 0960 or 0408 997 486 Email: info@carbonmarketinstitute.org
The Carbon Market Institute is an independent membership-based not-for-profit organisation. Our aim is to assist Australian businesses in meeting the challenges and opportunities associated with the developing national and international carbon markets and thereby build capacity to grow in a low-carbon world. Established with support from the Victorian Government, our Asia-Pacific wide membership represents a broad range of professionals, organisations and industry providers for whom carbon will have a direct impact on their businesses both in terms of liabilities and potential opportunities. The Institute has a strong research program and provides market analysis, education and training, business networking and information services and international engagement. CMI is also developing professional standards and an accreditation program. CMI incorporates and builds on the networks, partnerships and services developed by the former Asia-Pacific Emissions Trading Forum (AETF) which began operations in 1998. CMI commenced operation on 1 January 2011 with a mandate to assist Australian business with the implementation of climate-related markets, both in terms of managing risk and realising business opportunities.
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