The Australian Carbon Market
By MelisaLavalle at 22 February, 2012, 12:00 am
The introduction of the Carbon Tax in Australia has become a hot topic as of late. Like it or love it, it has become a reality that Australia can no longer avoid.
In ‘green’ terms the Carbon Tax is a responsible move. So many big businesses are creating profit with no thought for the environment. Pollution is rising while the state of the environment is falling.
The introduction of the carbon tax on July 1st 2012 is a healthy move for Australia. The government have introduced a ‘clean air scheme’ and are forcing the big emitters to buy carbon credits; representative to one metric tonne of greenhouse gas emissions. This means that organisations are offsetting their own carbon emissions by funding a project that will either absorb or reduce carbon emissions elsewhere.
Essentially for all the carbon that the big emitters are pumping into our atmosphere, they have to counteract this by creating clean air elsewhere, thus enhancing the environment and addressing pollution within Australia.
This is the environmental aspect of carbon credits, there is however a financial side to the carbon tax. These credits have to be purchased, capped at $23 per tonne or per ‘credit’, and with examples like the Ulan Coal mine in NSW set to emit approximately 575 million tonnes of carbon dioxide in just 20 years, this is very costly for emitters.
It is very evident that big emitters are being hit hard. Recently Qantas announced a rise in prices to combat this huge cost which they will soon have to address. Companies and organisations cannot escape the Carbon Tax. It IS happening and it IS going to cost.
This however does create a unique opportunity for the Australian Alternative Investment Market. The carbon tax is unavoidable, and thusly profitable. Written in legislation, companies have no choice but to buy carbon credits, therefore those who own or can create carbon credits are set to make a lot of money.
There is a CFI approved site here in Australia that is creating carbon credits. Growing trees in the Gippsland area of Victoria, absorbing the regulated amount of carbon to offset one metric tonne of pollution and consequently creating a tangible asset, a credit which can be purchased, a credit which one singular mine in NSW needs to purchase 575 million of.
As you can imagine with 332 working mines in Australia, and one lone mine requiring 575 million credits supply is low whilst demand is astronomical. The few investors who manage to gain limited allocations in this project creating carbon credits are going to be exultant whilst big emitters are despondent.
For a free report on an ethical, safe and highly lucrative carbon market which is available for a limited time visit http://www.capitalalternatives.co/au/lau
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