Can't find PDF: CPA Australia's submission on the draft CPRS legislation
Date issued: 5 May 2009
The Australian Government's decision to delay the introduction of its Carbon Pollution Reduction Scheme (CPRS) should lead to an improved long-term economic outcome according to CPA Australia.
CPA Australia president Richard Petty said the announcement would create greater certainty and reduce risk around the implementation of the scheme amid the global economic recession.
'It is absolutely critical that the implementation of such a comprehensive business response to climate change is effective and this imperative is heightened by the current global economic downturn,' he said.
'We welcome the government's decision as it will enable development of the correct infrastructure — regulatory and business — to ensure long-term business and economic viability in a carbon constrained economy.
'We urged the government to be mindful of the economic downturn in its implementation of the CPRS in our recent submission on the draft CPRS legislation and therefore we welcome the announcement of a 2011 start date.'
Professor Petty said the delay would enable the ultimate scheme to more effectively include some other key issues raised in CPA Australia's submission particularly the need for a rigorous and accurate reporting framework for emissions reports. Such a framework is fundamental to the credibility of the scheme.
CPA Australia believes that the CPRS is the major part of a comprehensive package of policies required to reduce greenhouse gas emissions. The complementary measures that we have proposed include:
- tax and other incentives to encourage R&D and the adoption of low emissions technology and processes for all businesses, not just the largest emitters initially included in the CPRS.
- accelerated depreciation for expenditure on replacing or upgrading existing plant and equipment with lower emissions technology.
These measures are not dependant the commencement of the scheme. They can be introduced earlier, not only to improve environmental outcomes but well-designed measures will stimulate economic activity.
'The adoption of such a far-reaching business and public policy initiative requires both a grasp of the bigger picture issues and the technical details to ensure it is correctly designed and calibrated,' Professor Petty said.
'The importance of the business response to climate change means it must be a case of more speed, less haste.'