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Australia Commits to Reducing Carbon Emission with Carbon Tax Implementation Finds Frost & Sullivan - While challenging industrial companies, the tax creates opportunities for clean energy and energy-efficiency system suppliers - Energy.Frost.com
Australia Commits to Reducing Carbon Emission with Carbon Tax Implementation Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Sydney, Australia, 2012/07/18 - While challenging industrial companies, the tax creates opportunities for clean energy and energy-efficiency system suppliers - Energy.Frost.com.

   
 
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Australia has made a move toward its commitment to reducing carbon emission with the implementation of carbon tax from July 2012 onward. Now, companies with high emissions – over 25,000 tonnes annually – are liable to pay the carbon tax. While this poses strong challenges for industrial companies, it will drive demand for energy-efficiency solutions and renewable energy power generation in Australia, despite the unchanged renewable target in 2020.

The new analysis from Frost & Sullivan (energy.frost.com), Impact of Australia Carbon Tax on the Energy Markets-a Strategic Perspective, provides an overview of the carbon tax, available government grants and programs, carbon tax in the international scenario, industries’ readiness for the tax, and the opportunities created in the wake of the carbon tax.

"Since July 2012, 500 large emitters in Australia are liable to pay carbon tax at a fixed price of $AUD 23 per tonne CO2, which will have a ripple effect on the whole economy," said Frost & Sullivan Senior Consultant Sarah Wang. "In order to mitigate the effects and create a smooth transition to a low-carbon economy, the Australian government has announced a series of grants and programs valued at over $AUD 20 billion."

While liable companies are much better informed and prepared for the carbon price tax, non-liable companies seem to have little awareness of the grants available to them or of how their business will be affected by the tax.

The tax and associated grants and programs have opened up opportunities for accelerated energy efficiency solutions upgrades as well as a higher proportion of alternative energy generation in the power portfolio in Australia.

"The increased electricity price caused by carbon tax is expected to create immediate demand for energy-efficiency solutions as well as renewable energy power generation," elaborated Wang. "Industrial companies that consume a lot of energy are likely to face a cost increase of between 5–15 percent and, as such, will seek solutions and power sources that reduce energy consumption or lower carbon emission."

However, most companies have shown a myopia when it comes to technology upgrades or adoption, and are unwilling to invest the initial capital to acquire the systems and solutions to lower energy usage. Hence, it is critical to promote the awareness of the challenges posed by the carbon tax. Only through understanding would the industrial companies initiate actions to reduce their energy consumption.

"Active promotional activities are required from energy-efficiency solution suppliers to increase the industrial energy consumers’ understanding of the benefits of carbon tax as well as the challenges it will pose," said Wang. "Supporting the industry through analyzing the energy consumption and exploring the areas where energy can be saved, are likely to lead to a positive response from the companies for technology upgrades."

If you are interested in more information about this study, please send an email with your contact details to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com.

Impact of Australia Carbon Tax on the Energy Markets-a Strategic Perspective is a part of the Market Insights – Energy & Power subscription, which also includes research such as: Who is Trending in the AMI Market?, Analysis of the U.S. Solar Power Market, DC Power for Data Centers: Analysis of Opportunities and Challenges, South Korea Green Growth Strategies - Strategic Perspective, Strategic Assessment of the Top Ten Developing Economies that will Shape the Next Decade, European Wave Energy Market Assessment, Oil and Gas Industry - Overview of Major Indicators, among others. These Market Insights are part of Frost & Sullivan Growth Partnership Service.

About Frost & Sullivan
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Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

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Australia Commits to Reducing Carbon Emission with Carbon Tax Implementation Finds Frost & Sullivan

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