Practical guide to help businesses prepare for carbon pricing

Monday, 30 April, 2012

With the start of Australia’s carbon scheme fast approaching, Australia’s peak body for carbon market professionals says the time to implement strategies to manage change is short and challenging.

“Every organisation - not just liable entities - needs to understand how the carbon price will affect their business,” Carbon Market Institute Executive Director Mike Tournier says.

“It is important to identify and act on key issues now to minimise disruption and avoid surprises before 1 July.”

The institute will be launching its guide for business, ‘Reporting and Accounting Requirements for the Australian Carbon Market’, at events in Sydney, Melbourne and Brisbane on 1, 3 and 15 May respectively.

CMI commissioned global assurance, tax, transaction and advisory services experts Ernst & Young to author the guide under the institute’s research program.

The guide discusses what businesses need to consider in the face of the carbon pricing mechanism, which will impact almost every aspect of the supply chain. It explores the treasury, finance and tax impacts and will help readers identify whether they are armed with the resources, information and knowledge they need to adapt.

“Cashflows, risk profiles, financial statements, tax positions and compliance obligations may all be affected. The pervasiveness of the mechanism means that business leaders will need to think broadly and innovatively in order to be fully prepared,” says Ernst & Young Climate Change and Sustainability Services Leader Mat Nelson.

The guide aims to provide insight into the scale of the changes afoot and some guidance on how to ensure readiness for the implementation of the scheme. It focuses on the financial, accounting, reporting and regulatory requirements for the Australian carbon market. Specifically, the publication discusses key actions entities need to undertake in the following areas: