Carbon Management: setting objectives

In the last edition of Carbon Matters, we launched a regular article about applying the EPA Carbon Management Principles to your business. This issue focuses on the second Carbon Management Principle: set objectives.

Setting objectives is a key step in a carbon management strategy to reduce greenhouse gas (GHG) emissions - you need to know where you are heading. The process of setting objectives can help your business best respond to the risks and opportunities presented by climate change.

EPA's Carbon Management Principles have helped many companies respond to the business opportunities of presented by climate change and reduce their carbon footprint. The principles comprise eight steps

1. measure emissions,
2. set objectives,
3. avoid emissions,
4. reduce emissions,
5. switch to alternative energy sources,
6. sequester emissions,
7. assess residual emissions,
8. offset what you can't avoid.

The strategy should be reviewed regularly to ensure you take advantage of new practices, opportunities and technologies.

In setting objectives, it helps to first understand what risks and opportunities exist for your business in a changing climate. This will help you develop a starting point on what goals are appropriate for your business. Risks and opportunities for your business might include, potential changes in energy pricing, a new product or market opportunity, the upcoming Carbon Pollution Reduction Scheme, or environmental changes brought about by climate change.

When setting carbon management objectives, it is worth considering short and long-term goals. Interim targets can make the overall target more manageable and provide an assessment as to how you are tracking towards the overall goal.

An example of interim targets has recently been seen in the Garnaut Review, where interim targets have been suggested to meet the overall objective of reducing Australia's emissions by 60% from 2000 levels by 2050.

Deciding on appropriate objectives for your company will depend on a number of factors. For example, if your company has already started reducing emission on site, you may consider investigating opportunities in your supply chain or product offering that will influence others to reduce emissions.

For your business, setting objectives may mean establishing decision making criteria for implementing carbon reduction actions. Criteria may be around financial rate of return or linking your carbon management strategy to your current business principles (e.g. environmental, financial, market, reputation).

Resources for assessing climate change risk and opportunity as well as information to assist in setting objectives, are available on EPA's website. EPA's up to date carbon management inventory, objectives and achievements will be released in the coming weeks.
Visit http://www.epa.vic.gov.au/climate-change/  

Read on to see how setting objectives can prepare your business for the Carbon Pollution Reduction Scheme.

Setting Objectives: Australia's Carbon Pollution Reduction Scheme (CPRS)

The introduction of a CPRS in Australia presents businesses with both risk and opportunity. Developing a carbon management strategy now will ensure that your business is well prepared to harness the opportunities CPRS provides.

If you are participating in the CPRS, you should assess opportunities to reduce emissions at your site and the costs involved. Estimating the cost of abatement options is key in determining whether you are likely to be a buyer or a seller of permits in the carbon market.

This information will assist you in setting targets for both onsite emissions reduction, permit revenue and acquisition. Determining this upfront, will ensure that you minimise business risks and maximise opportunities.

Risks and opportunities will also exist for companies not participating directly in the CPRS due to the impact of increasing electricity prices and flow on effects across supply chains.

Written by: Kate Gavens of EPA Victoria