Business not happy with proposed ETS timetable

While the Federal Government is pushing to begin its emissions trading scheme (ETS) in 2010, businesses are calling for the delay of the introduction arguing the scheme could significantly lift prices.
 
Xstrata Australia chairman Peter Coates said the success of the ETS would depend on the support of other large carbon emitters.
 
“We support leadership. What we don’t support is being leaders with no one following. In other words, if America and India and China do not follow, it is an absolute waste of time and enormously value-destroying, not just for our industry,” Mr Coates told The Australian.
 
Among other companies calling for the delay is Qantas Airways, which argues the Garnaut report’s proposal of the scheme would threaten its profitability.
 
“To sum it up, we estimate that an ETS as it’s currently proposed – 100 per cent auctioning – in 2010 could add up to $35 a barrel onto what we’re paying today,” Qantas chief risk officer Rob Kella told the Australian Financial Review.

Mr Kella added that introducing the scheme before other countries would disadvantage Australian-based operators, curtailing their international competitiveness.

 

Engine monitoring system to better prepare for ETS

Vehicle management system supplier Minorplanet has released a new engine monitoring system to help transport companies better measure and regulate their carbon emissions.

The launch came at the time of prevailing business uncertainty over the Federal Government’s emissions trading scheme (ETS).

A recent report, published by the Total Environment Centre, showed the transport sector is the second fastest growing source of Australian greenhouse gas emissions accounting for approximately 14 per cent of Australia’s total emissions with road transport accounting for ninety percent of that total.

“The Australian Government’s position is clear; transport will be a covered sector in any ETS model. This will ultimately inflate costs associated with the transport, freight and logistics industries,” the company said.

Executive chairman of Minorplanet Asia Pacific Philip Bennett said: “Minorplanet’s engine management technology is not just a breakthrough for improving road management and driver safety but also for helping operators and companies navigate through the maze of the impending emissions trading scheme.

“The full impact of the Australian Government’s proposed ETS is unknown. However, by industry acting ahead of the curve by implementing eco-efficient technologies to cut emissions now, will reduce the impact on their bottom line when the ETS comes into full effect in 2 years time.”

He said the company’s technology would cut compliance risk for the ETS by providing accurate data.

“The transport sector is heavily exposed to the impending ETS which will significantly increase overheads for the sector and will have a multiplier effect which will ultimately be passed on the consumer,” Mr Bennett said.

“This technology will help companies calculate exactly what their fleet emissions are as well as devising routes that are most the fuel efficient thus minimising their overall environmental impact and maximising their profitability.”

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