RESPONDING TO THE THREAT OF A COST OF CARBON

Abstract

Climate change is an emerging issue with the potential to have a significant impact on the energy sector and, more specifically, the oil and gas industry. Pressures from public opinion and the introduction of climate change policy and regulations could affect the competitiveness of the industry. Conversely, incentives and subsidies for renewable energy or other lower carbon energy sources could present a potential opportunity for companies looking to diversify their asset portfolios.

Australia has implemented a range of mandatory and voluntary schemes that encourage the reduction of greenhouse gas emissions. There is still, however, uncertainty as to if and how a cost of carbon may be regulated in the future.