New Report: Understanding the Impact of a Carbon Price on Australian Business
According to the results of a recent survey commissioned by Businesses for a Clean Economy (B4CE) half of the businesses that responded stated that the carbon price had impacted their business strategy. The survey was sent to over 570 businesses across all sectors of the economy including ASX 100 companies, liable entities under the carbon price and B4CE signatories and saw 180 companies respond. As a B4CE signatory we consider the results to be significant.
Key findings from the report are:
- The price on carbon has impacted business strategy and investment decisions for Australian business. 50% stated that the carbon price had impacted business strategy, with 15% of overall respondents directly liable under the Carbon Price Mechanism.
- Over 50% of respondents indicated that the carbon price uncertainty had resulted in “significantly negative” or “negative” impacts to their business.
- 48% of mainstream businesses report that the carbon price uncertainty has had an overall negative impact on their business.
- For businesses offering lower carbon services and products 78% reported that the carbon price uncertainty was having a negative impact on business with 60% stating uncertainty had delayed expanding into new markets, products, services or investments. A further 38% reported a decrease in demand for some products or services. Of 63 businesses that identified as participating in the Carbon Farming Initiative (CFI), almost 32% had delayed involvement in the scheme compared to only 6.3% who brought forward their involvement.
- 65% of all respondents support an emissions trading scheme and 29% support a fixed price response for pricing carbon.
- 85% “support” or “strongly support” the Clean Energy Future package.
- 7% “support” or “strongly support” the Direct Action policy, with 17% indicating that they did not know enough to comment and 12% “undecided”.
The report – “Understanding the Impact of a Carbon Price on Australian Business” – can be accessed via the B4CE website http://www.b4ce.com.au/