Hundreds of Australian businesses support carbon pricing

Almost 300 organisations have galvanised under the banner of Businesses for a Clean Economy to voice their support for putting a price on carbon.

The 299 large, medium and small-sized businesses and associations represent a wide variety of sectors from across the Australian economy and include AGL, ARUP, Fujitsu, GE, Grocon, HESTA, IKEA, Infigen, Pacific Hydro, The Body Shop Australia, Unilever, Vestas and Westpac. As the start of an ongoing push to highlight the benefits of carbon pricing to Australian business, they have launched a targeted advertising campaign in national print and online media.

“A carbon price with cost-effective complementary measures is critical to reducing Australia’s emissions,” said Nathan Fabian, CEO of the Investor Group on Climate Change - a group of investors advocating for a price on carbon - and spokesman for Business for a Clean Economy. “Countries around the world are acting to reduce emissions, and Australia needs to put a price on carbon in order to remain competitive and drive innovation.”

In a joint statement, the businesses said they believe “stable, long-term policies - like a carbon price and its complementary measures” - are a necessary part of the transition to a clean economy.

“A carbon price and complementary measures will assist Australia in remaining globally competitive and will deliver new industries in clean energy, energy efficiency and low-carbon technology,” they said.

“Pricing carbon allows businesses to choose how they reduce emissions and provides incentives for innovation. It unlocks jobs and investment in new industries, products and services. Importantly, it allows business to get on with the job of building a prosperous, clean, internationally competitive economy.”

Fabian said, “There are lots of companies that are affected by the carbon price who, because of the political debate, are keeping a low profile. However, they are quietly getting on with the job because they accept the reality of climate change, and accept the inevitability of carbon pricing.”

The group believes that Australian businesses recognise that the economy of the future is a low-carbon economy and have already started to act. For example, Westpac has provided over $3 billion in financing to Australian and international companies for environmental activities, and approximately 50% of its investment in infrastructure and utilities is spent on renewable and hydro energy. Emma Herd, Executive Director Emissions and Environment for the company, stated, “We believe that business holds many of the keys to tackling climate change, including entrepreneurship, innovation and can-do leadership. And business has the most to gain from adopting a positive and proactive response.”

Last year, GE’s ‘Ecomagination’ unit generated over $21 billion in revenues globally and the company is actively pursuing low-carbon solutions in Australia. It is currently working on ways to use the power of mallee trees from Western Australia to produce biofuels to reduce aviation emissions. Ben Waters, Director of Ecomagination, said, “Countries and companies embracing cleaner energy and using energy more efficiently will have the advantage. They will be quicker to respond to the opportunities for new jobs and new investment in the emerging low-carbon economy. The big opportunity for business is in improved productivity from lower energy usage and innovation aimed at cost reduction and growth.”

Australian companies are opening up new markets and creating jobs in areas like algae carbon capture by Algae.Tec, renewable wave energy by Carnegie, and microcombined heat and power by Ceramic Fuel Cells. Matthias Anker, Account Executive for Ceramic Fuel Cells, said, “A price on carbon will force innovation and efficiency; we believe this bodes well for Australia’s future and cleantech industry.”

While not all organisations support the carbon price, a recent survey by the Economist Intelligence Unit suggests that the majority have accepted it, and most of those are beginning to implement carbon reduction strategies. A summary of the findings can be read here.