CPRS SERVICESThe CPRS
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Carbon Pollution Reduction Scheme (CPRS)There is a common perception that the Carbon Pollution Reduction Scheme (CPRS) announced recently by our federal government is only the concern of big business. This is incorrect; the Carbon Pollution Reduction Scheme (CPRS) will affect every organisation, no matter what size.The Carbon Pollution Reduction Scheme (CPRS) works by mandating that every organisation with a facility that emits 25 kilotonnes of CO2-e or more per year must report and purchase a permit for every tonne of CO2-e it releases. This covers approximately 70% of Australia's emissions and includes most electricity generators, mining companies, large property trusts and other ASX 200 companies. Click here for more detailed information about the Carbon Pollution Reduction Scheme (CPRS) As compliance parties, organisations must take the requirements of the Carbon Pollution Reduction Scheme (CPRS) seriously. Failure to do so can result in fines to the CEO itself, albeit the risk is small if you understand and follow the rules. If a company does not comply, the risks are great. The cost of permits will be passed on to consmers through electricity bills as well as the cost of goods and services. If an organisation has existing contracts, it is possible that they may no longer be financially viable as increased costs could absorb the entire profit margin. Companies with high energy consumption and low margins should carefully assess the cost of the Carbon Pollution Reduction Scheme (CPRS) and how it will affect their business going forward. In the worst case, contracts or previous business plans may no longer be viable. At $20.00 per tonne, the cost of electricity for the average resident in NSW will rise nearly 10%, or a little over 2c per kWh; but for businesses who are generally charged a cheaper rate the percentage may be far greater. The Carbon Pollution Reduction Scheme (CPRS) presents both opportunities and risks for organisations. Companies that are well prepared, understand the cost increases and the risks in exitsing contracts and have determined their Marginal Cost of Abatement Curve, stand to benefit as they mitigate the financial impacts of the Carbon Pollution Reduction Scheme (CPRS) and become more price competitive. Companies that are not prepared risk having contracts becoming unviable; having great cost increases for energy and energy intensive products and, in the long run, risk going broke. CRI can assist you with the following services:
Please contact us if you require further information! |
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