The Carbon & Renewable Energy Markets Seminar in Adelaide in early February, which was organised by the Clean Energy Council and hosted by Greenbank and KPMG, saw clean energy industry professionals and stakeholders come together to unpack the Australian Government’s proposed Carbon Pollution Reduction Scheme (CPRS), the expanded renewable energy target legislation and other issues facing the industry.

Clean Energy Council CEO Matthew Warren welcomed seminar attendees and introduced South Australia Minister of Environment and Conservation, the Hon. Jay Weatherill.

Mr Weatherill noted the significance of the economic change that the CPRS will bring, but highlighted that challenging times also provide opportunities. Outlining the state government’s actions to support and build the clean energy industry and encourage energy efficiency, he said that the state had “unlocked the key to climate resilience”. He said that the convergence of a changing climate and the economic issues facing the world seem to make meaningful action on climate change even more difficult, but emphasised the opportunities these times provide, particularly the increasing cooperation between government and industry.

Focussing on action and the opportunities at hand, he concluded “[The CPRS] will test our inventiveness, ability to innovate and capacity to change.”

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TFS Green Senior Carbon & Renewables Broker Chris Halliwell gave an overview of the CPRS in his presentation ‘How I learned to stop worrying and love the ETS…(I mean the CPRS)’.

While the Federal Government has estimated that the initial carbon price will be around $25 per tonne, Mr Halliwell said the numerous inputs affecting the carbon price (estimated at an introductory price of $25 per tonne), including regulatory uncertainty, compensation, international carbon prices and wholesale electricity pass through costs, means business should prepare for different price scenarios. Understanding pay-off periods, building an abatement cost curve and driving behavioural change are vital actions to take today, he said.

KPMG Tax and Energy & Natural Resources Partner, Tim Sandow, and R&D Grants Manager, Matt Herring, outlined taxation treatments for business under the CPRS, as well as the outlook for research and development funding.

Mr Sandow said the key question for business under the CPRS tax scheme is whether to buy permits or reduce emissions. He stressed that in making this decision, businesses should look at the after tax cost of any abatement measures they plan to implement.

On research and development funding, Mr Herring said that because no one has a clear picture of what the research and development incentive landscape is going to look like in the coming years, business should focus on the programs currently available.

After networking over afternoon tea, Vim Sustainability Managing Director John Brodie addressed the seminar on the opportunities for carbon abatement through energy efficient buildings, concluding that more money can and should be put into energy efficient design.

Mr Brodie’s presentation triggered discussion about unlocking the benefits of energy efficiency. While Mr Brodie said that “energy efficiency is free” and we should ask for more, panel speaker, Megan Wheatley from Suzlon Energy, said that while energy efficiency is incredibly important, it is challenging to encourage its take-up.

Clean Energy Council General Manager Policy Rob Jackson was the last speaker to address the seminar on the specifications and implications of the expanded renewable energy target (RET) legislation.