The Carbon Pollution Reduction Scheme
The Australian Government has committed to a mandatory emissions trading system starting on 1 July 2011.
In 2006, Australia's net greenhouse gas emissions totalled 576 million tonnes of CO2 equivalent. The CPRS will cover the stationary energy, transport, fugitive emissions, industrial processes, waste and forestry sectors – about 75 per cent of all emissions.
Australia will have the second largest carbon market in the world.
The CPRS will create opportunities for firms in several sectors:
- project origination
- corporate and project finance
- advisory services and consulting
- carbon asset management
- trading and broking
- legal services
- monitoring, reporting and verification.
Australia's emissions trading scheme will integrate with international markets and will allow unlimited imports of Kyoto units, except for assigned amount units.
Some companies might want to enter other Asia Pacific markets when they emerge. Setting up a base in Sydney will prepare firms to capture first-mover advantages in the region.
The NSW Government has established the Sydney Carbon Market Taskforce. The taskforce is capitalising on Sydney's existing business strengths so that the city can establish itself as the Asia Pacific's emissions trading hub.
Sydney will be the centre of Australia's renewable energy trade. The Australian Government has committed to a 20 per cent reduction as a national target by 2020, which will require about $2 billion of new investment funded by public and private sectors.
Sydney will also be home to a large volume of energy efficiency trade – the NSW Government's energy efficiency trading scheme starts this year.