Study: Carbon Pricing Gains Slight Traction among Aussie Business Leaders
Unlike the Coalition, Australian business operators firmly believe that the country's carbon pricing will remain in place despite vows by Opposition Leader Tony Abbott that he will repeal the tax if he wins government power in 2013.
In a study commissioned by GE Australia & New Zealand, 85 per cent of 136 business leaders polled revealed that they had adopted their respective carbon-reduction programs to their operations, highlighting the scheme's gradual acceptability to the business community, which before had met carbon pricing with stiff opposition.
According to the Economist Intelligence Unit, which conducted the actual survey titled 'Australian Low-Carbon Readiness Barometer', up to 72 per cent of those queried had accepted that the carbon pricing passed by the Labor government of Prime Minister Julia Gillard will live through even if strings of national polls suggested that the present federal government will be driven out of power on 2013.
Another 29 per cent admitted that their business have been reconfigured to absorb the economic impact of Australia's fixed carbon pricing, which by July 1 will charge $23 per tonne of carbon emission on specific industries.
The first study conducted in 2011, researchers said, only yielded three per cent of preparedness among firms that will be most affected of the emission trading scheme.
More than 30 per cent of the firms that participated in the survey affirmed that perceived business risks attached with the carbon tax will eventually dissipate over the long-haul, among them grocery giant Coles and oil and gas producer Shell.
The two firms, according to The Age, have factored in hundreds of millions of carbon tax liability, which will be offset by billions of revenues in the years and decades ahead as Australian industries gradually shift to efficient and cost-effective clean energy.
Yet, some amount of reservations were still gleaned by the study as about 50 per cent executives hoped that future federal governments could modify the scheme, which if keep by Australia should at least be maximised to the benefit both of its environment and the economy.
The fixed pricing embodied in the carbon tax laws was just too low, according to one out of ten executives questioned by the study's researchers.
But some 70 per cent begged to disagree as they were convinced that the bar was set too high by the Gillard Government, the study said.
GE chief executive Steve Sargeant told Renew Economy that the study laid out emerging realities in the local business sector, in which more and more companies have been embracing policies that would fit their business operations into a global business environment that adheres to green energy.
"It is encouraging to see that the companies that are directly affected by carbon pricing are taking action. The big opportunity for business is in improved productivity from lower energy usage and innovation aimed at cost reduction and growth," Mr Sargeant said.
Also, GE's director of ecomagination in Australia and New Zealand, Ben Waters, viewed the fresh data as indicating that "an imminent price on carbon is working to change behaviour and drive action."
"This is the new business reality; doing more with less will be important this century. As with all new trends, business will react and adapt in different stages, however it is encouraging to see that starting to happen," Renew Economy reported Mr Waters as saying on Tuesday.
He cited the New Zealand experience, which had imposed carbon pricing in 2010 and initially attracted overwhelming criticism.
But after two years of being in effect, only six out of ten business leaders in the country have admitted that they still oppose the emission trading scheme.