Carbon Pricing Policy in Australia - Coursework Example

Running Header: Carbon Pricing Policy Student’s Name: Instructor’s Name: Course Code: Date of Submission: Carbon Pricing Policy Carbon has adverse effects on the environment. It reduces the amount of oxygen in the atmosphere. This creates a situation where it is very impossible for all living things to thrive in such an environment. The effects of carbon in the atmosphere are many. Many of the activities that are carried out in living things are greatly hampered because of the high carbon concentrations in the atmosphere. They require high quantities of oxygen gas in order to maintain and carry out these basic functions. As a result many nations are coming together with the aim of understanding what needs to be done (Casio 2008). This is in relation to the issues of the amount of carbon emissions in the atmosphere. This is especially in relation to the current issue of global warming. The amount of carbon in the atmosphere and other green house gasses aims to look into this question. This paper aims to understand what is being done to regulate the amount of carbon emissions into the atmosphere. It addresses set policies and those in discussion to improve on the carbon issue. Emphasis will be on Australia (Billiton 2008) 1. Current and Proposed Australian Carbon Policies One of the most famous policies that were proposed in Australia included the CPRS. This is the Carbon Pollution Reduction Scheme (Heidt 2008). This is one policy that was proposed in Australia and it brought so many debates and discussions. In many instances, it came to near rejection and acceptance as members of the house constantly bickered over its contents. The policy stated that it would provide incentives for each and every business and organization that incorporated measures that would reduce the amount of carbon produced. This was especially in those factories and organizations. This created a system where the scheme in question aimed at capping and trading (Billiton 2008). It was heavily criticized because the overall cost of this scheme would fall on many small businesses and general consumers. It was also observed as lacking the efficient capacity to actively deal with the carbon issue comprehensively. The CPRS failed and it was replaced by the Clean Energy Act. This was in 2011. This act ensured that there active systems in place that would ensure that the energy used in many environments is clean. This is with the aim of reducing the amount of carbon that was released into the atmosphere. The act ensured that many factories and companies had systems in place to ensure that they incorporated regulatory systems. These systems will have the duty of identifying the amount of carbon they produce. Once they have identified this, they will have mechanisms in place that will aim at reducing or eradicating the amount of carbon produced. There are so many policies current and proposed that have the same agenda. The sole aim is to ensure that they cater for the issue of carbon emission and its effects on the environment (Heidt 2008). 1.1 Existing Legislation for Reporting Carbon Emission Data One of the most current legislations that deal with reporting carbon emission data is the NGER Act. This is the National Green house and Energy Reporting Act. This is one good example that is tasked with the responsibility of monitoring the rate of carbon emissions into the atmosphere (Davis 2008). It then compiles this information with the sole aim of educating the government, masses and everyone concerned about the effects of carbon emission. The exercise aims at ensuring that everyone is well versed with the effects of carbon emissions into the atmosphere. The information is also used by the country as it goes about meeting the global expectations in respect to climate and green house gas emissions. It can also be observed that the EMA provides a platform for the creation of legislations that would ensure that the data collected by the agency is put into good use. This refers to the ability of the information to be employed in an environmental decision making context. This is by having all the concerned stakeholders taking the time to analyse the data presented. They are then tasked with the duty of advising the sectors that they deal with (AGDC 2011). Legislation for reporting carbon emission data is very necessary. It creates a platform about what needs to be done at what point in a country. This shows that adequate time was taken to understand the issue at hand. Another legislation that is actively involved in the reporting of this kind of data is the Renewable Energy Target. It is shortened to the RET. Its main duties include its ability to ensure that systems are in place to ensure that Australia converts to the use of renewable energy (AGDC 2011). This is with the realization that many countries have many aspects of renewable energy. The energy is however not put into good use as most people concentrate on the industrial power. This power comes at a very high cost and adverse pollutive effects t the environment. The target stipulates that the country will have increased its reliance on renewable energy by the year 2020. 1.2 Proposed Carbon Tax and its Requirement The Australian government is so desperate to reduce the effects and amounts of carbon emissions in the atmosphere. This is the sole reason as to why they came up with the carbon pricing scheme. The act that represents this scheme is also the one that represents the cap-and –trade process (Roger 2011). The act comes into effect to take after some of the proposals of the CPRS. After the flop of the CPRS policy, a lot was discussed in the government circles on what should be done to regulate the amount of carbon dispensed into the atmosphere. The Carbon Tax was created with the aim of ensuring that it dealt with some of the obvious problems that were generated by the CPRS (Casio 2008). One of the first requirements that the tax has is the setting of a fixed price. The fixed price will be applied on emissions that are experienced at any point. After the fixed price has been set, a specific carbon price mechanism will be selected. This will have the duty of converting the set fixed price to a cap-and –trade price. This will be based on an agreed upon scheme. After a period of either 3 to 5 years the fixed price will now change. This will pave way for the price to increase at predetermined rates. It should be noted that the prices are incorporated in this case to reduce the amount of carbon and other green house gases that are produced by organizations, factories and institutions (Roger 2011). The carbon tax will affect both the international and local levels. This will ensure that all the parties involved have an active system in place to compensate on the levels of green house emissions into the atmosphere. 1.3 The Relationship between the Current and Proposed Carbon Policies and EMA There is a very deep connection between the current and proposed carbon policies with those of the EMA. Both the current and proposed risks have a general aim of identifying what needs to be done now and in future. Once this has been identified, the EMA comes in with measures that will ensure it has identified the problems and their existing solutions. It will then create mechanisms that will ensure that the solutions can be implemented as smoothly as they ought to be (AGDC 2011). This leads to the creation of a symbiotic relationship between the policies and EMA. 2. General Use of EMA As has been described above, EMA has the duty of regulating and self regulating mechanisms for carbon management. This means that from time to time the EMA is called in to assess the impact of carbon on the atmosphere. This means that it takes into consideration carbon that has already been emitted into the environment and what to do about it, it also takes into account the aspect of carbon emissions that can be emitted into the environment due to certain factors (Burritt 2011). EMA creates mechanisms that regulate the amount of green house gases that have been absorbed into the atmosphere and their effects. It also takes into account what aspects can lead into the uncontrolled exposure of the atmosphere to green house gases. This creates an active mechanism that adequately deals with the internal and external infrastructures at EMA disposal. Once this is done, it is very easy to draw the line between the ability of EMA to regulate and self regulate for overall management of carbon emissions. This enables effective environmental decision making. 2.1 EMA Use in Carbon Management The carbon management framework ensures that it provides all known mechanisms that are needed at all levels of management. This will ensure that they are employed by the managers to come up with effective strategies that can be employed in an organization. This will ensure that the organizations and institutions have the ability to deal with short and long term issues that relate to the environment. This will be through the creation of long and short term policies that will cater for the issues identified (Burritt 2011). The CMA framework explains that there are very many situations that contribute significantly to the use of EMA in carbon management. One of the tasks includes that it ensures that it is very possible to access all the portfolio records that have been generated at each and every step of any carbon transaction. It is very easy to record and highlight all the steps that were carried out in these transactions. The agreed upon terms and conditions for carbon regulation will be possible using the EMA system (Nasibulin, Pikhitsa, Jiang, Brown, Krasheninnikov, Anisimov, Queipo & Moisala 2007). Another practical example that shows how EMA works in the carbon management is the formulation of contracts. In many cases, contracts have to be drawn to show that there is an understanding between partners. The contract is long term and it legally binds all the parties that commit to the contract (Burritt 2011). EMA ensures that they understand the long and short term effects of the contract and its overall effects on their general environmental responsibility towards each other. EMA ensures that there is an active audit that trails each and every step of the management process. This means that it is very possible for the parties involved to conduct the exercise and find out how much it costs. This will enable the accountants and auditors to draw all the financial implications of any activity that relates to carbon management. This will ensure that it is possible to trail the project and make considerable recommendations. The success of carbon management involves the ability for all interested parties to trail the progress from one point to the next. This will work systematically if the variables keep changing at each and every step. This is because all this will have different and adverse effects on the general process. This could mean that it actually improves or fails. 2.2 Findings of the EMA in Carbon Management in the Australian Context One thing that is very clear is that everyone is responsible for the emission of greenhouse gases in one way or the other. This creates a situation where each and every person has the responsibility of dealing with the issue. Australia is responsible for the policies that are formulated in their own country. They should be clear and effective policies that can be absorbed into the country. This is with due consideration to the infrastructure, economic ability and overall attitudes and perceptions of the people in the region. They should also have the ability to employ all the EMA concepts in an active decision making context. According to (Burritt 2011), it is important to critically analyse the effects of the issue in question. Once this has been identified, the short term measures can be easily identified to compliment the situation identified. It is well known that short term measures generally target the long term. This will create a situation where Australia is aware of its problems in relation to carbon emissions. This will then create room for them to have effective systems in place that will ensure that the issue is adequately catered for. This is in relation to set aside finances, time and resources (Von der Heidt, Charles, Ryan & Hughes 2008). In many instances, the agreed upon factors for carbon implementation will be some form of commitment. This commitment is aimed at ensuring that there are collaborated efforts by all interested stakeholders. This could either be local or international stakeholders. This creates room for the creation and the understanding drawn from the understanding of all parties. This leads to the general conclusion that Australia needs to find and implement mechanisms that will ensure that there are active policies in place. 3. EMA as a Tool for Adaptation and Innovation The EMA is a tool for general adaptation and innovation because it takes time to observe certain trends and processes. After the observation process is complete, it then creates mechanisms that ensure that it is easy to adopt to the set mechanisms. Adoption leads to the process of adaptation. This adaptation process encompasses all measures of innovation that will be employed in a decision making context. This will create suitable avenues for the overall management of carbon and all its components (Lide 2005). Its level of innovativeness is also seen in its overall ability to come up with mechanisms that work to ensure effectiveness and efficiency in the selected processes. These are the processes that will be used in the overall carbon management. 3.1 EMA in Carbon Management EMA is a very crucial and important process in carbon management. This is because it ensures that it assesses the impact of carbon and the lack of it in an environment. This means that the sole duty of EMA is to ascertain the total cost of carbon and its set technologies on the environment. The general process involves the understanding of several concepts. All the calculated concepts work hand in hand to channel their resources to create the most effective strategy that will actively deal with the carbon emissions. 3.2 Risks and Opportunities in Carbon Restriction There are a couple or risks that are involved when dealing with carbon emissions. One of the major issues to be experienced includes the application of unfair restriction in an area. This may create the general sense that some environments may be targeted and not others. This creates animosity between regions that should be united in the fight against green house gas emissions. This will greatly hamper the progress that is set in the fight and eradication of carbon from the environment (Nasibulin 2007). Carbon is mainly produced as many other economical factors are being catered for. This means that in the general process of cutting back on the amount of carbon produced, the economic factors in many countries can be greatly down sized. This means that aspects of industrial and agricultural processes will be reduced or halted in general. This will have negative effects on the economic ability of these countries. One of the opportunities and advantages of carbon restrictions will be that the percentage of carbon in the atmosphere will be greatly reduced (Lide 2005). This will ensure unity in the employment and formulation of the set policies. This is for all the interested parties. 3.3 Challenges Organization’s Face in Implementing EMA Many organizations would want to implement EMA. This will ensure that they understand the eternal environment. This will then allow them to form mechanisms that will work in their favour when dealing with the problem of emissions. The major challenge that is experienced is the inability of the said organizations to identify what they need from their environment (Nasibulin 2007). This makes it practically impossible to channel all their internal resources to meet the external needs expected by the environment. 3.4 Direct Link of EMA to a Sustainable Business Every business has to create a direct link to EMA. This is because this is the emerging trend. This ensures the overall success of the business. This is because it creates mechanisms for the business to identify what it needs and work towards it. It also limits on all the aspects that incorporate carbon technology. This is with the sole aim of ensuring that they conduct their businesses in the required standards (Von 2008). This will guarantee maximised profits for the business. This will go hand in hand with the environmental responsibility that the business has on the environment. This will be one that actively deals with the environment and keeping it safe from all dangers. References Ahamaad, H, Matysek, A, Fisher, BS, Curtotti, R, Gurney, A, Jakeman, G, Heyhoe, E & Gunasekera, D 2006, Economic impact of climate change policy: the role of technology and economic instruments, ABARE, Canberra. Aldy, JE, Krupnick, AJ, Newell, RG, Parry, IWH & Pizer, WA 2010, ‘Designing climate mitigation policy’, Journal of Economic Literature, vol. 48, no. 4, pp. 903-934. Australian Government Department of Climate Change, National greenhouse and energy reporting, viewed Oct 12 2011, http://www.climatechange.gov.au/government/initiatives/national-greenhouse-energy-reporting.aspx Australian Government, ‘Communiqué 21 December 2010’, DCCEE website, viewed Oct 12 2011, http://www.climatechange.gov.au/government/initiatives/multi-party-committee/meetings/third-meeting/communique.aspx Australian Government, Budget measures: budget paper no. 2: 2010–11, Commonwealth of Australia, Canberra, 2010, p. 119, viewed Oct 12 2011, http://cache.treasury.gov.au/budget/2010-11/content/bp2/download/bp2_v2.pdf Barro, R & Sala-i-Martin, X 1992, ‘Convergence’, Journal of Political Economy, vol. 100, no. 2, pp. 223-251. BHP Billiton 2008, Resourcing the future sustainability summary report, viewed 29 July 2009, http://www.bhpbilliton.com.au/bbContentRepository/docs/bhpb_sustainability_2008.pdf Casio 2008, Casio Corporate Report, viewed Oct 12 2011, http://world.casio.com/env/pdf/report_2008/Casio_CSR_ENG.pdf Davis, M 2008 ‘Lower burden for nation's worst polluters’, Sydney Morning Herald. Falkowski, P, Scholes, RJ, Boyle, E, Canadell, J, Canfield, D, Elser, J, Gruber, N & Hibbard, K 2000, ‘The Global Carbon Cycle: A Test of Our Knowledge of Earth as a System’, Science, vol. 290, no. 5490, pp. 291–296.  Lide, DR 2005, CRC Handbook of Chemistry and Physics, CRC Press, Boca Raton, FL. Loerting, T 2001, ‘On the Surprising Kinetic Stability of Carbonic Acid’, Angew. Chem. Int. Ed, vol. 39, no. 5, pp. 891–895.  Nasibulin, AG, Pikhitsa, PV, Jiang, H, Brown, DP, Krasheninnikov, AV, Anisimov, AS, Queipo, P & Moisala, A 2007, ‘A novel hybrid carbon material’, .Nature Nanotechnology, vol. 2, no. 3, pp. 156–161. Ostlie, DA & Carroll, BW 2007, An Introduction to Modern Stellar Astrophysics. Addison Wesley, San Francisco. Roger L. Burritt, Stefan, S & Dimitar, Z 2011, ‘Carbon Management Accounting: Explaining Practice in Leading German Companies’, Australian Accounting Review, vol. 21, no. 1, pp. 80–98,  Retrieved from, http://onlinelibrary.wiley.com/doi/10.1111/j.1835-2561.2010.00121.x/full Savvatimskiy, A 2005 ‘Measurements of the melting point of graphite and the properties of liquid carbon (a review for 1963–2003)’, Carbon, vol. 43, no. 6, pp. 1115. Von der Heidt, T, Charles, MB, Ryan, R & Hughes, B 2008, 'Managing environmental regulations for the 21st century: challenges andopportunities in an Australian industry context', Managing in the Pacific century : program and abstracts 22nd Australian and NewZealand Academy of Management (ANZAM) Conference, Auckland, NZ, 2-5 December, Promaco Conventions, Canning Bridge, WA, viewed Oct 12 2011, http://epubs.scu.edu.au/cgi/viewcontent.cgi?article=1047&context=comm_pubs&sei-redir=1#search="growing+environmental+legislation WBCSD 2011, Carbon pricing, The role of carbon pricing as a climate change instrument, viewed Oct 12 2011, http://www.wbcsd.org/plugins/DocSearch/details.asp?type=DocDet&ObjectId=MzkzNjM Read More