CPRS SERVICES

Impact of the CPRS on business operations

The final design of the CPRS has not been released but given the short time frame from this release to the implementation of the scheme it is prudent for all businesses to quantify their exposure to risks from price increase due to the greenhouse emissions embedded within their supply chain and operations.

Current contracts which extend past 2010 will be subjected to a carbon price at the implementation of the CPRS and this price increase may reduce the viability of these contracts. For the construction industry in particular the production of steel and concrete are very energy and emissions intensive and these are two of the construction materials that are likely to see a significant price increase upon implementation of the scheme.

The main question businesses are now asking is: How do we ‘carbon proof’ ourselves and minimise the risks that these costs will have on our business?

CRI can examine the expenses of your organisation and determine the financial impacts various carbon prices will have on your day to day operations.

Provided with the expenses from your chart of accounts CRI will generate report detailing the cost increases associated to the CPRS on all expenses and cost of sales items. The report looks beyond compliance requirements and assists any organisation by forecasting increases in expenses at various carbon prices under the scheme. The report will also identify contracts that may become non profitable at various carbon prices.

Act now against climate change - become a carbon neutral business!