It is important that members review their operations and familiarise themselves with the most appropriate government assistance programs since the introduction of an emissions trading scheme, which essentially involves determining a market price for carbon, will be associated with cost increases.

Printing companies will be faced with increased electricity and water charges and they will also be faced with other increases cost imposts in the areas of raw materials and transportation.

Printing Industries will be closely monitoring developments and announcements and will inform members of industry assistance measures once details have been finalised.

Members who are looking at ways of reducing their environmental footprint have a number of programs that they can access including the Climate Ready Program and the Re-tooling for Climate Change Program.

Background

The Federal Government on Monday 15December 2008 released the White Paper outlining its final design of the Carbon Pollution Reduction Scheme and the medium-term target range for reducing carbon pollution.

The Government has decided to set a price cap for five years, of $40 per tonne at Scheme commencement, rising at five per cent real per annum. Current intention is to commence the Carbon Pollution Reduction Scheme on 1 July 2010. The Scheme will be Australia's primary policy tool to drive reductions in emissions of greenhouse gases.

The Government has set a medium-term target range to reduce emissions by between 5 and 15 per cent below 2000 levels by 2020. The long-term goal is to reduce Australia’s greenhouse gas emissions to 60 per cent below 2000 levels by 2050.

The Scheme will cover around 75 per cent of Australia's emissions and involve mandatory obligations for around 1000 entities. There are around 7.6 million registered businesses in Australia: the overwhelming majority will not, therefore, face any direct obligations under the Scheme.

Emitters of greenhouse gases need to acquire a permit for every tonne of greenhouse gas that they emit. The quantity of emissions produced by firms will be monitored, reported and audited. At the end of each year, each liable entity will need to surrender a permit for every tonne of emissions that they produced in that year.

The White Paper follows the release of the Green Paper in July which outlined various design options for the scheme. Feedback from the process of consultations that followed the release of the Green Paper and input from more than 1,000 submissions helped to shape the final position paper by the Government.

In implementing a strategy for climate change, the Government is basing its strategy on three pillars: reducing Australia's carbon pollution; adapting to unavoidable climate change; and helping to shape a global solution.

The Government in establishing the $2.15 billion Climate Change Action Fund over five years aims to smooth the transition for businesses, community sector organisations, workers, regions and communities to an operating environment that includes a price on carbon.

The Fund will comprise four streams of activity. The streams relevant for industry are:

Stream 1: Information

• Small Business Capital Allowance to assist investment in energy efficiency enhancing equipment (e.g. hot water, insulation, lighting, motor and drives, combined heat and power, heating, ventilation and air conditioning, and refrigeration equipment) that meets established energy saving criteria. Priority will be given to those small businesses that are not eligible for other forms of assistance.
• Innovation in Climate Change to provide competitive grants funding for low emission technologies, production methods, supply chain improvements or products; and high energy savings projects with long pay back periods. Priority will be given to those businesses that are not eligible for other forms of assistance recognising or receive the lower rate of EITE assistance recognising that there may be other situations where assistance is warranted.