Addressing climate change is one of the key economic and environmental challenges facing Australia and the rest of the world. Environmental damage due to climate change is understood to be caused by increased greenhouse gas emissions which are predominantly carbon-based.

If emissions continue to increase at the current rate, it is expected to have severe impacts on our environment and lifestyle. The marine industries are likely to be directly affected by any sea level rise and increased storm and surge events.

Impacts on marine industries

Based on current rates of climate change, by 2100 it is expected that global temperature will rise between 1.1 to 6.4 degrees Celsius and sea levels by 18 to 59 cm. Globally 100 million people live within one metre of sea level.

The Marina Industries Association of Australia has partnered with the Carbon Reduction institute to introduce the Low Carbon and No Carbon Marina Initiatives under the Clean Marinas Australia Program. These provide a certification system and allow for varying levels of carbon reduction via gas, petrol, diesel, electricity, waste and transport savings.

Carbon Pollution Reduction Scheme

The Federal Government's initial proposal under the Carbon Pollution Reduction Scheme will include around 75 per cent of Australia's emissions. The proposal applies obligations to the top 1,000 large companies that have direct emissions of 25,000 tonnes or more of CO2 equivalent a year.

As such, the great majority of Australia's 7.6 million registered businesses will not face new regulatory obligations as a result of the Carbon Pollution Reduction Scheme. However, small to medium enterprises need to be mindful that the 1,000 top CO2 emitters are likely to share their costs and responsibilities through
the supply chain. In order to remain competitive, they should consider how to identify savings to offset any increased costs.

Emissions trading will be the key mechanism for achieving substantial emissions reduction in a responsible and flexible manner and at the lowest possible cost. The Carbon Pollution Reduction Scheme addresses both economic and social matters by encouraging the market to place a value on emissions and distributing funds equitably.

The Federal Government's long-term goal is to reduce national emissions by 60 per cent compared with 2000 levels by 2050. The mechanics of the proposed emissions trading scheme are set out in the steps below.

Step 1: Significant emitters of greenhouse gases will need to acquire a 'carbon pollution permit' for every tonne of greenhouse gas that they emit.

Step 2: The quantity of emissions produced by companies will be monitored and audited.

Step 3: At the end of each year, each liable company will need to surrender a 'carbon pollution permit' for every tonne of emissions that they produced in that year. The number of 'carbon pollution permits' issued by the Federal Government in each year will be limited to the total carbon cap for the Australian economy.

Step 4: Companies will compete to purchase the number of 'carbon pollution permits' that they require. Companies that value carbon permits most highly will be prepared to pay most for them, either at auction, or on a secondary trading market. For others, it will be cheaper to reduce emissions than to buy 'permits'.

Certain categories of companies might receive some 'permits' for free as a transitional assistance measure. These companies could use these or sell them.
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If a company can undertake carbon reduction measures cheaper than the permit price, it will reduce its emissions, limiting its need to buy permits. Conversely, companies will be able to pay for permits if it will cost them more to change the way they operate and reduce their emissions.

Setting a limit on total CO2 emissions will mean that the right to emit greenhouse gases becomes limited and this scarcity creates a value. The Carbon Pollution Reduction Scheme will put a price on carbon in a systematic way throughout the economy.

Carbon accounting for your business

The impact of an emissions trading scheme will be felt by all businesses through price increases for fuel, energy and energy-intensive products and services. Corporate regulation will increasingly require the calculation and disclosure of emissions that are embedded in some goods and services for certain retailers.
Carbon foot-printing provides value by reporting to clients and consumers on the true total emissions they are purchasing. It also provides a solid platform for highlighting environmental innovations and performance improvement opportunities.

Supply chain emissions are more difficult to quantify or control. The first and most important place to start is to reduce emissions within your control. Consider doing an energy audit covering fuel and electricity usage plus recycling and production efficiency. Please refer to the ecoBiz Queensland section of the Queensland Government's Environmental Protection Agency's web site for a number of such case studies. You can also ask suppliers to account for and disclose the emissions that they control. Accounting for all emissions needs to be done in the part of the supply chain where it can be most effectively and efficiently managed.

Carbon emissions are most effectively counted by the emitter. This approach avoids the double counting of emissions by different parts of the supply chain.

CO2 Equivalent (CO2e)

The six main greenhouse gases that have been identified as contributing to climate change are CO2, methane, nitrous oxide, sulphur hexafluoride, specified hydrofluorocarbon and specified perfluorocarbon. Each gas has a different global warming potential. For simplicity of reporting, the mass of each gas emitted is commonly translated into a CO2 equivalent amount so that the total impact from all sources can be summed to one figure.

The 3 steps for CO2 foot-printing (including CO2e) are:

Step 1: Set boundaries about what parts of the organisation are included and from what date. Account for what the company controls. Distinguish between direct and indirect emissions. Direct carbon emissions are generally from onsite energy use such as gas or diesel burning. Indirect emissions include those resulting from fuels burnt offsite to provide purchased electricity or transport of goods up and down the supply chain.

Step 2: Collate raw data mainly from suppliers for all included sites (electronic billing, leasing and tenancies, vehicle hire and air travel).

Step 3: Apply accepted and credible conversion factors to the raw data to derive carbon emissions. (refer to the Green House architectural services web site.)

Last updated 14 July 2009