Posted by: Danielle Moore at February 01, 2023
Labor pledged during the 2022 election campaign to set a legally binding target to cut Australia’s emissions by 43% by 2030. The first step towards achieving this was the recent introduction of the government’s climate policy, the safeguard mechanism.
This federal policy, which targets our 215 biggest industrial polluters, makes industries cut emissions and change the way they operate. It does this through new pollution caps, which push them to invest in clean technology, or capture their own emissions.
If companies don’t achieve these pollution limits, they’ll be forced to buy carbon offset credits. Our local, approved, carbon credits instrument is Australian Carbon Credit Unit’s (ACCUs), which are awarded to eligible energy efficiency, renewable energy generation, and carbon sequestration projects that reduce greenhouse gas emissions.
ACCU prices are currently undervalued relative to global prices and are set to soar with a looming step-change in demand – mainly because more Australian corporates have committed to Net Zero commitments by 2025. Our government has also proposed climate risk reporting by 2025, to align with international standards, which is likely to drive greater participation in Australia’s carbon offset markets.
This is just the start of what we believe will be a big push to get Australian businesses to take more accountability for their emissions and invest in greener technology. Worst-case, we could be looking at the reintroduction of a full-blown carbon tax, which had an initial short life here between 2012 and 2014.
Make sound environmental decisions on your own terms
That’s why it’s important for all industries to evaluate their carbon footprint and introduce efficiencies voluntarily, before potentially being forced to. With more pressure than ever on the cost of living, focusing on renewables to power business and industry is becoming more critical.
This greening of our economy also provides economic opportunities for businesses, along with some challenges. Over the next three years, experts believe Australia will generate half its electricity from renewable sources. To get there, investment in new wind and solar farms, along with backup services to help transition services, will be essential.
Annual growth of around 13% is predicted for renewable energy over the next 10 years and the Australian Academy of Technological Sciences and Engineering believes renewable energy share will rise to 69% by 2030.
You may be considering updating or upgrading your operation as you future-proof your business and make it as efficient as possible.
Rebus can help you make better informed decisions and navigate infrastructure investment and opportunities in green energy – no matter if you’re upgrading infrastructure, doing commercial developments, or rolling out maintenance programmes or tech implementations.
Contact Rebus Capital for your capital solutions
Do you need advice and flexible finance? At Rebus Capital, we provide cost-effective capital structures that are sustainable over the life of a project, and which help address stakeholder needs and community expectations.
Please get in touch.
The Trustee for the Rebus Capital Partners Unit Trust ABN 88 452 904 420. Authorised Credit Representative 523233 under Australian Credit Licence 536100.