Table of Contents
Executive Summary........................................................................... 3
The Carbon Pollution Reduction Scheme (CPRS)........................... 6
Key elements ............................................................................................................................6
The Kyoto Protocol and the CPRS.............................................................................................7
Scheme coverage .....................................................................................................................8
The National Greenhouse and Energy Reporting Act (2007) ......... 9
The Relationship between the NGER Act and the CPRS ........................................................13
Options for Sourcing of Permits .................................................... 14
The Carbon Price ............................................................................. 17
Industry Assistance Measures........................................................ 18
Assistance to Emissions Intensive Trade Exposed (EITE) Industries ......................................18
Assistance to strongly affected industries ..............................................................................20
Other business assistance measures .....................................................................................20
The Renewable Energy Target (RET) ............................................. 21
Company Emissions Data ............................................................... 22
EITE status ..............................................................................................................................22
Companies with no public emissions disclosure ....................................................................22
Emissions profiles...................................................................................................................23
Accounting Considerations ............................................................ 27
Accounting methodologies are ill-defined...............................................................................27
A key uncertainty is asset impairment ....................................................................................27
Emissions assurance will become part of financial audit ........................................................27
Tax treatment of permits.........................................................................................................27
Company Valuation Analysis.......................................................... 28
Building Materials ...................................................................................................32
Chemicals .................................................................................................................34
Developers and Contractors...................................................................................37
Energy.......................................................................................................................38
Paper and Packaging...............................................................................................40
Resources .................................................................................................................42
Retail .........................................................................................................................44
Steel ..........................................................................................................................47
Telecommunications...............................................................................................49
Transport ..................................................................................................................50
Utilities .....................................................................................................................53
Appendix A....................................................................................... 55
Glossary............................................................................................ 56
Bibliography..................................................................................... 57