More than 50 per cent of business executives think regulated carbon emissions trading will be a reality in Australia in the next two to five years, and most would welcome it, a survey shows.
The survey, by PricewaterhouseCoopers of 63 business leaders from 51 organisations, found every single respondent viewed climate change as a strategically significant issue for their organisation in the next five years.
And it is the potential for cost savings, not concern about the environment, that is predominately driving their enthusiasm.
"What the business community is saying now is they need to identify the low hanging fruit as quickly as possible," said PWC partner Andrew Petersen.
Close to 52 per cent of respondents said they expected a regulated scheme to be introduced within two to five years and 78 per cent said they would prefer a nationwide, regulated scheme rather than a voluntary one.
"The inference from that would be that the federal government in conjunction with the states, potentially through COAG (Council of Australian Governments), would be the regulator," Mr Petersen said.
The federal government has indicated it is considering introducing an emissions trading scheme.
Last month, Prime Minister John Howard announced the government was setting up a joint task force with business to develop a carbon trading scheme for Australia.
But he has set no specific dates, and has been accused of stalling by the Greens and non-government environmental groups.
At the same time, the New Zealand government said it was talking with the NZ Stock Exchange about establishing a carbon trading scheme there, Climate Change Minister David Parker describing the NZSX as the "natural owner" of a carbon market in the Asia-Pacific time zone.
Finance Minister Nick Minchin said last month the Australian government would consider a carbon tax on industry, but only if other countries introduce carbon pricing as part of a global agreement to cut emissions.
The PWC survey found that over half of the respondents were disappointed with the effectiveness of existing government policy on carbon emissions.
"This is an interesting result given the broad perception that these settings have been driven by a concern to protect business interests," PWC said.
A lack of government guidance meant respondents were unable to fully assess the specific financial impact that climate change and emissions trading would have on their organisation, hindering the development of a definitive strategic response.
Most respondents felt it was up to all levels of government to introduce clearer policies, which provide certainty about the shape of future carbon constraints.
There are some regulated requirements, but only for energy wholesalers nationally and large energy retailers in NSW, which both trade Renewable Energy Certificates (RECs) and NSW Greenhouse Gas Abatement Certificates (NGACs).
Most of the PWC survey respondents felt emissions trading schemes should be spread to all emission-intensive sectors of the economy.
RECs and NGASCs were nominated as the preferred carbon product to be traded, with most respondents shunning international products established under the Kyoto Protocol, albeit not from dislike of the products themselves.
"This lack of enthusiasm ... is reflective of the widely held perception that Australia's non-ratification of the Kyoto Protocol locks Australian business out of the market," the report said.
The survey's respondents included chief executives and chief financial and operating officers from companies mostly from the energy and resources sectors, but also from financial services, manufacturing and transport.
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