With the government’s Carbon Pollution Reduction Scheme now being hammered in the Senate, it’s time to look at the impact of climate change and climate change.
The Australian Chamber of Commerce and Industry has commissioned a study from Castalia Strategic Advisors on the impact of the scheme on plastic and chemical manufacturing, food processing and freight and transportation, to be finalised in June.
The ACCI has put out a statement warning that small to medium sized businesses will suffer because they are vulnerable to cost increases and they are not eligible for compensation because they are not directly captured under proposed CPRS arrangements.
On the other hand, Climate Institute research shows the introduction of a carbon trading regime could contribute to the establishment of 26,000 jobs in such areas wind power and solar power. While most of the jobs would be in construction, there would be many others created in manufacturing.
An interesting example might be the green car industry. In April, the Minister for Innovation, Industry, Science and Research Kim Carr announced a $1.3 billion Green Car Innovation Fund to help companies develop and commercialise Australian technologies that significantly reduce fuel consumption and greenhouse gas emissions of passenger motor vehicles. For every $3 a company spends in this area, the Government will provide $1. Interestingly enough, we have reports that the world’s greatest investor Warren Buffett is working with Volkswagen to develop electric cars.
So what impact do you believe a carbon trading regime would have on manufacturing? Will it cost jobs by increasing costs? Or will it create a new industrial revolution?
