Climate Change 

How will climate change affect my business?

Climate change is likely to affect Australians and Australian businesses by altering long term weather patterns. The potential costs to the environment and economy should be of concern to everyone.

There are a number of ways you can limit the effects of climate change on your business. Incentives, such as grants, will be available to businesses to encourage innovation and change in the transition to a reduced carbon economy. In addition, a carbon price will encourage low-carbon consumption and production.

Whatever your level of impact there are incentives, guides, tools and information available to help manage the impact on your business and help you minimise it where possible or appropriate.

Carbon Pollution Reduction Scheme (CPRS)

The introduction of a domestic carbon price under the Carbon Pollutino Reduction Scheme (CPRS) will have consequences for all businesses in Australia.

The CPRS provides a framework for businesses and communities to adapt to climate change. The scheme will provide economic incentives for reducing the emission of pollution into the atmosphere and will commence in Australia on 1 July 2011.

While the CPRS will cover around 75 per cent of Australia’s emissions, most businesses will not face any direct obligations under the scheme, due to its focus on the emissions of larger businesses (estimated to be around 1000 companies that produce annually more than 25,000 tonnes of carbon pollution). Major polluters will be required to pay for emission permits. This will build a low-pollution economy by driving a structural transition from emission-intensive goods, technologies and processes to low-emission goods, technologies and processes.

Business input costs will change and, in particular, the costs of emissions-intensive inputs such as energy are likely to be moderately higher. Smaller businesses are likely to face increased energy and fuel costs, through the demands of their supply chains and consumer pressures.

The Government will support households and businesses to lessen the financial impact of the CPRS through the Climate Change Action Fund (CCAF).  Every cent raised from the CPRS will be used to help Australians adjust to the scheme and to invest in clean energy options. The CCAF will also provide incentives for business and community organisations to invest in low-emissions technologies, processes and products.

For more information on the CPRS go the Department of Climate Change website.

Renewable Energy Target (RET)

The Renewable Energy Target (RET) is the Government's primary policy for encouraging new investment in renewable energy generation in particular.  It allows the market to choose those technologies which reliably produce renewable energy at the lowest cost. Australia has set a RET of 20 per cent by 2020. This means that by 2020, one-fifth of Australia’s electricity will come from renewable sources such as wind, solar and geothermal power.

For more information on the RET go to the Department of Climate Change website.

What can I do to limit the effects of climate change in my business?

There are a number of ways you can limit the effects of climate change on your business, with incentives, guides, tools and information which are available to help manage and minimise the impact on your business:

Reduce your Carbon Footprint

A carbon footprint is the total greenhouse gas emissions caused by individuals, families, businesses and countries. These footprints are made up from almost every activity in our daily lives. On average, Australians have about the largest carbon footprint in the world.

Reducing your carbon footprint can mean making changes to your business activities, including spending less on raw materials, energy and water, reduced waste and finding new market opportunities for "green" goods and services.  But there are also real savings for your business. For more benefits, visit our Business benefits page.

Visit our Tools & Resources page for online tools, calculators, guides and databases to help you make your business sustainable and reduce or offset your carbon footprint.

Comply with environmental & climate change regulations

To ensure your business and the environment is protected, you need to know if your business activities fall under environmental legislation, reporting, licensing and labelling requirements. Visit our Licences & labelling page and our Reporting page to find out your obligations.

Grants

There are a range of grants and assistance available across federal, state and territory, and local government levels to support efforts to make your business more environmentally friendly. For a full list, visit our Environmental grants and assistance page.