Direct Action not as motivating as carbon tax say some of Australia’s biggest emitters

Jayanthi Kumarasiri and colleagues write in The Conversation (2.9.16) about the Coalition Government’s Direct Action policy, which large-emission companies admit is not as effective at reducing their carbon pollution as the earlier carbon pricing scheme.

‘Australia’s largest listed, carbon intensive companies say management lost focus on carbon matters, abandoned energy projects and didn’t have the commercial imperative to produce long-term strategic action on reducing emissions after the carbon tax was repealed, new research finds.

‘Our research looked at the comparative views of emitters before and after the repeal of the carbon tax legislation, in interviews with 18 senior managers from nine carbon-intensive listed companies.

‘Two years have passed since Australia’s carbon tax was repealed. It was introduced by the Labor government and came into effect in 2012.

‘… Overall, the research provided mixed evidence about achieving Australia’s commitment, made at the Paris climate change summit, to reduce emissions to 26-28% on 2005 levels by 2030. Some companies are acting as though the carbon tax never left us, while for others carbon emission management is no longer a strategic issue.

‘The financial pressure exerted from the carbon tax was a strong motivation for all sample companies to take urgent action on emissions management. So the challenge for the current government is whether Australia’s current policy incentives for corporate constraint of carbon are strong enough to deliver.’

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