This blog aims to show how acting vigorously to reduce carbon emissions is good for the environment and good for business. That it is possible to create a “win-win” with the right approach. The Emissions Trading Scheme – officially known as the Carbon Pollution Reduction Scheme (CPRS) clearly, as explained in earlier blog posts, is climate negative - its not good for the environment.
Various blogs today responding to the release of the draft CPRS legislation by Climate Change Minister Penny Wong point out that its not just bad for the environment – it goes so far in its compensation to major emittors that its actually good for big business.
Crikey.com refer to a study commissioned by the Australian Conservation Foundation which shows that many of the major polluters will actually benefit from the CPRS as a result of the free permits handed out. The Crikey post summarises this as follows “So let’s be clear: the the Government’s rationale for amending its already-generous ETS so that it rewarded big polluters was not to prevent the loss of jobs and emissions overseas, but to ensure the profitability of big polluters.”
Paul Gilding in the Business Spectator writes “This is as good a deal as business will get. It is easy to imagine a future government, when the icecaps have melted, the cyclones are hitting and the fires are burning, imposing a much tougher regime than the one currently on the table. The CPRS is a bad deal for the climate but it’s a great deal for business. Take it and run or you’ll rue the day you didn’t.
So lets summarise the above. The CPRS is bad for the climate, but good for big business. Its lose-win legislation – a loss for the environment and a win for those businesses that are major pollutors. In the short term anyway its a win for the major polluters, but in the long run won’t be - big business managers and shareholders won’t be immune to the effects of dangerous climate change.
Which brings me back to the argument that those of us who want to be climate positive need to be coming up with ways of reducing carbon pollution that are also great for the hip-pocket - in the short to medium term and not just in the long term. With products and services that business willingly buy because its good for the bottom line as well as being good for the environment. And that we need to be making the CPRS irrelevant – by making it so easy to be sustainable that its foolish not to. We have clarity now that the CPRS won’t cut emissions, and may actually put a floor on the amount of emissions reduction that can be achieved. Hopefully this flaw will be removed over the next few months as the legislation is debated. But we have a heck of of an innovation and entrepreneurial challenge!
And there is also a tremendous social challenge – the challenge of changing society to the point where carbon pollution becomes abhorrent and morally repugnant – for most of us.
If you care about future climate stability I’d encourage you to act as a carbon-saving innovator or entrepreneur, or to influence to create a society that is carbon-intolerant, and not put too much faith in the CPRS.