New survey data released today by International Emissions Trading Association (IETA) and PricewaterhouseCoopers shows a continued strong sense of confidence and progress in the Greenhouse Gases (GHG) market. The GHG Market Sentiment Survey data comes at a time when Australian business is waking up to the challenge of Kyoto compliance.
Sean Lucy, Climate Change Services, PricewaterhouseCoopers says, "The Australian market will need to engage with a highly sophisticated market that is maturing rapidly. Australian businesses need to play catch up to bridge the gap between awareness of climate change and preparedness for the new carbon economy."
As with the IETA survey in April, most respondents expect the growth in the GHG market to continue, with more than half looking forward to significant growth in the next year.
"With Australia about to take on a new role at the leadership table of international policy development, the vast majority of Australian businesses face a mammoth task in preparing for the reality of the new carbon economy."
Over 84 percent of the survey respondents (who ranged from traders to compliance players) agree that the GHG market is an effective policy instrument for reducing emissions and helping to address climate change. Almost all participants (90 percent) believed that the GHG market will continue beyond 2012. This is significantly more compared with the previous survey conducted in April.
"For business, robust carbon management is not about signing up to achieve targets, it is about making a transformation right across the organisation. With the government now committed to deliver at least a 1 percent reduction in national emissions by 2012 all businesses can expect to be asked to play their part."
The survey data also showed a growing need for more harmonisation in the EU-ETS, particularly with regard to allocation and monitoring.
"The Australian government needs to look at how the Australian and NZ scheme can best work together in harmony. A key element of this will be to develop a similar set of reporting and accounting standards for emissions trading.
"With 81 percent of the respondents seeing the need for clarification of accounting standards as important, there is no better time for the government to take a more active role in making sure that everyone is playing the same game. There is also a big demand for clearer regulation around the ETS."
Sean Lucy continues, "The survey data also told us there is a big apetite for carbon capture and storage to become a significant factor in the GHG market within the next ten years. This is a big opportunity for the Australian resource and energy sectors to gear up to meet this demand."
Sean Lucy says, "As the Australian business delegation converges on the UN Climate Change Conference in Bali, there is also a gap that needs to be closed in practical business experience between us and the rest of the Kyoto signatories.
"Australian business also needs to take into consideration the expectation of price rises for the EU voluntary and compliance markets. We should not expect carbon prices to stay low in Australia."
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