Commonwealth Government Green Paper

Apologies blogging world for the delay in blogging. I think it sums up just how much is going on in this space that we haven’t blogged for so long - we have been very busy! The Green Paper released by the Commonwealth Government outlines how the emissions trading scheme (now called the Carbon Pollution Reduction Scheme) will look. It is one of the biggest economic reforms undertaken by any Government in Australia’s history. I have attached here AGL’s summary of the scheme for our business customers. Click here to view Green Paper Summary.

Industry Response to the Budget

There was not alot in the Commonwealth Budget around emissions trading, climate change policy or energy policy. The major decisions this year are likely to be made outside of the Budget process and relate to the expansion of the Mandatory Renewable Energy Target and the introduction of an emissions trading scheme. One measure, introduced by the Budget, will see the solar PV rebate limited to households with incomes less than $100,000.

AGL & Westpac complete first “Australian Carbon” Trade

http://www.smh.com.au/news/national/19-a-tonne-the-price-to-pollute/2008/05/19/1211182703278.html

 

Today we announced the first trade in Australian Emissions Trading Units (AETUs).   AGL sold Cal 11 Australian Carbon at $19.  This is the culmination of the analysis of a prospective carbon market, and over the last couple of months, work amongst the Carbon Solutions team to get documentation and risk management worked out - with many hours spent with the lawyers, our risk managers, consultants and the Board to get this deal across the line.

 

What does it mean?  Well it means that AGL is pioneering the trade of carbon in Australia, we have made our assessment of all that is known about the carbon market rules and have now given Australian business, and more importnatly many of our major customers, a real indication of the price a tonne of carbon should expect to achieve in 2011.  We do expect others to have formed different views about the market and the likely carbon price - but it’s good to be on the front foot. 

Chris Cormack - Our New Blogger

Hello blogging world! Chris Cormack, one of AGL’s carbon trading gurus has kindly volunteered to blog on behalf of AGL. Chris works in AGL’s carbon solutions team and has a deep understanding of carbon policy, carbon trading and renewable energy. Welcome Chris!

AGL Presents to the Market

In yet another first, AGL has presented real financial metrics around its greenhouse footprint. In a presentation to equity analysts, AGL has stated what the upside and potential downside of its portfolio of assets in a carbon constrained world might look like. Click here for the presentation.

AGL Garnaut Submission

AGL has made a submission to the Garnaut Climate Change Review. The Review is to provide advice to the Commonwealth Government about climate change policy later in 2008. The website can be accessed here. AGL’s submission is available here. Happy reading!