Preparing for a carbon constrained economy: managing compliance and cost
Frederic Papon A and Susie Smith BA EY.
B Santos Ltd.
The APPEA Journal 56(2) 541-541 https://doi.org/10.1071/AJ15047
Published: 2016
Abstract
Australia’s greenhouse gas emissions reduction target of 26–28% by 2030 will require an effective emission reduction of 46% from business as usual emissions. Along with the Emissions Reduction Fund, the Safeguard Mechanism is a central component of the Australian Government’s plan to meet its targets.
It is vitally important that businesses understand the compliance obligations, costs and opportunities as industry transitions to a lower carbon economy.
From 1 July 2016, the Safeguard Mechanism will begin placing a compliance obligation on any emissions above legislated facility baselines. Entities exceeding their baselines will be required to surrender Australia Carbon Credit Units (ACCUs) to the regulator.
There are, however, a range of commercial strategies that companies can adopt to manage their compliance obligation.
Frederic Papon is a director in EY’s Climate Change and Sustainability Services in Melbourne, and brings more than 15 years of experience working on climate change and energy policy and strategy issues for the private and public sectors, with significant international experience. He has worked extensively with the oil and gas and utilities sectors under the NGERS reporting framework, Carbon Pricing Mechanism, assistance package for Emissions Intensive and Trade Exposed Industries, and the new Safeguard Mechanism. Frederic joined the professional services industry in 2000. He began his career with EY’s Climate Change and Sustainability team in Paris, providing consulting services under the European Union Emissions Trading Scheme (EU ETS) and United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM). In 2009, he joined EY’s Climate Change and Sustainability team in Melbourne and, since then, has been working under the successive federal and state government’s carbon and energy policies. Frederic has contributed to a number of publications including, more recently, an analysis of the implications of the Paris agreement (COP21) and key considerations for businesses aligned to their strategy and disclosures to the 2C goal. Frederic attended the COP21 as an observer as part of a group involving leaders from the federal and state governments, business and academia. |
Susie Smith is Santos’ General Manager Carbon and Sustainability. She has more than 20 years of industry experience. She published Santos’ first greenhouse policy and first sustainability report in 2004. Susie represents Santos on the APPEA Energy and Greenhouse Committee, and is Chair of the Australian Industry Greenhouse Network Board. She was also the Australian industry delegate on the Global Reporting Initiative (GRI) Oil and Gas Sector Supplement working group. This successful collaboration resulted in the publication of the new GRI oil and gas sustainability reporting guidelines in 2012. Susie is passionate about the oil and gas industry and believes that through constructive dialogue and a commitment to transparency it can successfully demonstrate its sustainability credentials in a low carbon economy. |
