CARBON PRICING POLICY

QUESTION

Independent Project Hints

You will be marked on:

Written report (30/40)
a) Demonstrated understanding of global knowledge society theories and concepts.
b) The ability to apply inter-disciplinary approaches in the selected project (case study, PR kit,
grant proposal, or briefing paper).
c) Evidence of research with appropriately referenced source material
d) Accurate grammar, punctuation and spelling

Presentation (10/40)
a) Demonstrated capability to present a project to multicultural audiences.
b) Demonstrated time management capability during the presentation. (5 minutes)

Word length
The assignment is 1500 words.

Options
You need to choose one of the 4 options. Each will require you to write in a particular genre and
may need to do some research into how to write in that genre if you have not written in that style
before – whether a case study, PR materials, briefing paper, or grant proposal.

No matter which option you choose to work on, you need to apply relevant theoretical concepts
in the discussion of the practical situations/cases.

There are heaps of resources online. But below are some hints to make sure you are on the right
track.

a. Case Study

e.g. based on a problem or dilemma you worked on or found out about during an internship
Introduction – introduce the reader to the overall topic, a statement of purpose (broader
significance/issue); brief description of the case (the actual situation); a list of sections that will
be included in the report (structure).

Statement of Problem – clarify for the reader what the problem or dilemma is in as clear terms as
possible, analysis of the problem, list all information that is relevant or necessary to understand
the problem.

Possible Solutions – 3 possible solutions, evaluation of solutions by listing the advantages and
disadvantages of each solution, choice of solution and justification for choice (why you choose
this solution, why this was the best choice).
1

Conclusions and Recommendations – present your thoughts about the process and any issues
surrounding the topic that came up for you in doing the case study, relate specific findings of the
report to the general issue that was introduced in the ‘introduction’, provide 3 clear answers about
the issue, or a statement of observation on the problem (i.e. a characteristic about the problem
that you have noticed in doing this case study).

Adapted from: http://www.staff.vu.edu.au/case_studies/structure.htm#

b. PR Kit

The organization can be part of an existing organization or an entirely new business/organisation
– but you must place it in a real context.

The PR kit option was mainly included for students who have already done some studies in
public relations, and who have an idea about writing media releases and other materials for
journalists. A PR kit is a press kit, which includes materials about the new business, brand or
not-for profit organisation for journalists in a style that is suitable for them. i.e. there should be a
media release which is newsworthy – the new brand/business/organisation must be doing
something new, unique, that hasn’t been done before – and the report should be written in the
style of news. You can also include a backgrounder with facts about the organisation/brand,
maybe a profile of the CEO, and a picture/logo.

You will also need to include a rationale for why that organization/brand was required, its role,
how it will operate etc. and connect it to concepts in this course. You may address this in the
‘backgrounder’ section of the kit.

Some students have asked whether you have to put the documents in an actual ‘kit’ or folder.
There is no need to put them in a folder – just submit as one document as normal.

Refer to PR textbooks/websites on how to write media releases/PR materials.

2
c. Grant proposal

-not-for-profit organisations apply for grants to get money for projects

Summary, in one paragraph (3 or 4 sentences) describe your request (Who you are, What your
project is, How much you’re asking for)

Then outline each of these points in more detail – specific and realistic budget, show how this
money fits in with your organization’s overall budget and other things it is doing, include letters
of support and newspaper articles that document your organisation’s success and partnerships
with other organizations.
http://www.cpcwnc.org/resources/toolbox/writing-a-grant-proposal

Also see:
http://nonprofit.about.com/od/foundationfundinggrants/tp/grantproposalhub.htm

d. Briefing Paper

– to advise a government department

If you want to do the briefing paper, look up ‘Briefing Paper’ on Google and find some examples.
e.g. http://www.katelundy.com.au/wp-content/uploads/Public-Sphere-2-Government-2.pdf

This one is much longer than the one you need to do, but have a look at some of the key features
and follow those

e.g. background to the issue relevant to the particular government department, why it is
important to do something about this issue, statistics, risks and opportunities, recommendations,
references.

You need to choose a particular problem related to an issue discussed in this subject and write an
analysis of the problem for the relevant government body with some recommendations for them.

You can choose to write a report for a government ministry in Australia or overseas (e.g. China).
SOLUTION

Introduction:

The context of the briefing paper is related to the carbon pricing policy that the Australian Prime Minister Julia Gillard announced on 10^th July 2011 as a part of the Clean Energy Plan (Prime Minister of Australia, 2011). The government plans to price the carbon emissions by different organization in order to force them to lower the emissions which would help in ensuring a sustainable environment in the country. The carbon pricing mechanism has been clearly explained by the government which contains an initial 3-year period of fixed pricing ($23 per tonne and will rise at 2.5 per cent each year in real terms) starting from 1 July 2012 till 30 June 2015 after which the carbon price would be decided by the market through an emissions trading scheme (Australian government, 2012). Since the press release, the government has passed a law related to the carbon pricing on 8^th November 2011, which shows that the strong determination of the government which has laid a clear strategy for the implementation of the Clean Energy Plan. However, the carbon pricing mechanism is only one of the steps that it plans to implement in the Clean Energy Plan which is aimed at improving the environment in the country with investments in renewable energy and other initiatives as outlined in the plan.

This paper aims to highlight the issues related to the carbon pricing mechanism and point out the parties that are going to be affected by this scheme. It concludes by pointing out the problems and necessary recommendation for better execution of the scheme.

Key Features:

Apart from the price explained in the previous section, the bill has many other features which are important to be considered, some of them have been explained below (The Climate Group, 2011):

• Emissions: The government aims to cut down more than 159 million tonnes of carbon emissions by the year 2020 (Australian government, 2012) through the carbon pricing mechanism which would act as an economic initiative for the organizations operating in the country as higher carbon emissions would cost them more due to the legislation passed by the Government.
• Coverage: The government has included all the businesses which are producing more than 25,000 tonnes of Carbon dioxide per year excluding the aviation, agriculture, forestry, and land industries.

Apart from these two features, the carbon pricing is expected to have different economic impacts on the country’s economy as well as the livelihood of households. The carbon pricing policy is one of the first steps that the government is taking in order to ensure sustainable environment for everyone.

However, the department of climate change and energy efficiency needs to look on the negative side of the carbon pricing mechanism also. The government’s theory is built around the fact that the organizations would decrease the level of emissions, which implicitly is flawed as the organization would rather pass on the costs to the customers who eventually has to pay more for the goods and services. The government’s plan also states that half of the collections from the carbon pricing mechanism will be spent in compensating the families below (The Climate Group, 2011) who are affected. In such a case the very basic need to establish a green environment is compromised as the focus gradually shifts towards the revenue and expenditure made by the government with respect to the carbon emissions. The following section highlights few points related to the carbon pricing mechanism’s effect on the environment (Butler S, 2011):

• Use of Fossil fuels: The statistics indicate that the growth in the mining industry is close to 100% especially for gas and iron ore by the end this decade. This means that despite of having the carbon pricing the increase in carbon emissions cannot be controlled to acceptable levels. It could be accepted that it is difficult to curb down the carbon emissions completely but the carbon pricing mechanism spills over its effects to the standard of living of a common man. The government has meticulously chalked out the climate change plan but has done it in a harder and unacceptable way.
• Providing assistance to businesses: The government in its plan has clearly stated that 40% of the revenue will be used in creating jobs as well as assisting business which are responsible for large amount of carbon emissions. Although the government seeks to secure jobs for the employees, it should concentrate more on the process of converting the current businesses into more energy efficient and low carbon polluting ones. The amount of money that it wants to pump to secure jobs in such industries is in terms of billions of dollars whereas it plans to spend only a few millions for installation of new energy efficient technologies in small and medium enterprises.

Structural changes to solve the environmental problems: With the introduction of carbon trading, a market is created wherein the organizations can buy carbon credits from those who possess extra, thus, providing the polluters with a solution for their problems. However, the main problem of extraction of fossil fuels is being ignored due to the above mentioned market as it is a cheaper alternative available with the business organizations. The government has failed to look at this facet of the law which would not only affect the pollution levels in the country but also make the life of a common man costly.

Many academicians as well as politicians have expressed their views on this step taken by the government and it was found that the reactions are mixed, as in some are very juvenile whereas some are cynical about the policy. One such academician Dr Neil Perry, research lecturer in corporate social responsibility and sustainability, School of Economics and Finance, University of Western Sydney, mentions that the policy should not have been directed towards protecting the interests of the organizations (Creagh S, 2011) which are the main cause of the carbon emissions in the country. The lecturer argues that the government should take strict action against those industries even though it leaves many jobless. According to the lecturer, the motive of incentivizing the organizations to curb the carbon emissions might not be effective as they would increase the price of its products in order to compensation for the additional expenditure.

Need of the Hour:

This section points out some recommendations to the policy of carbon pricing so that the main motive of clean energy and environment is achieved.

• The policy does provide funds to small and medium enterprises as well as farmers for installation of clean energy technology and processes, therefore, in order to stay on the right side of the argument, the policy should not provide any sort of funds to the businesses producing carbon emissions. This would ensure that the businesses would take the policy seriously and would take necessary steps to reduce carbon emissions.
• The government should put a cap on increase in price of the products and services by the organizations such that the effect of carbon pricing is not passed on to the customers. This would ensure that the households are not affected due to the carbon pricing which should be the way to implement this policy. The households are not responsible for the carbon emitting industries and, therefore, should not be penalized.
• The government should also increase the carbon price per tonne such that it would hurt the organization’s profitability which would force them to reduce the carbon emissions and improve their process technologies by installing newer and greener technology.
• The government should proactively promote installation of green technology and processes in organizations- ranging from heavy industries to micro, small and medium enterprises. This would result in an industry wide development of newer technology and might help in achieving energy efficient processes which would further hasten the process of decreasing the carbon emissions.

Conclusion:

The carbon pricing legislation has already been passed in the parliament and as explained it would require the businesses to pay $23 per tonne of carbon production starting from 1st July 2012, and the price is expected to increase 2.5% annually till 2015 after which the price is expected to be determined by the market. Amidst many features of the policy there are loopholes and certain key points which the government and the department of climate change and energy efficiency has ignored. I have tried to emphasize on the negative effects of the policy on the common people and the environment as a whole. The recommendations should be taken seriously as it would make a greater impact on the carbon emissions if at least one of them are considered by the government.

References

Australian government, 2012, ‘ An overview of the Clean Energy Legislative Package’. [online] Available at: <http://www.cleanenergyfuture.gov.au/wp-content/uploads/2012/05/CEF-overview_Apr2012.pdf> [Accessed on 14 May 2012]

Butler S, 2011, ‘ Green reasons to oppose Australia’s carbon price’. [online] Available at: < http://www.greenleft.org.au/node/48220> [Accessed on 14 May 2012]

Creagh S, 2011, ‘Carbon price: Academics’ view’. [online] Available at: < http://www.climatespectator.com.au/commentary/carbon-price-academics-view> [Accessed on 14 May 2012]

Prime Minister of Australia, 2011, ‘Putting a price on carbon pollution’. [online] Available at: <http://www.pm.gov.au/press-office/putting-price-carbon-pollution> [Accessed on 14 May 2012]

The Climate Group, 2011, ‘ The Clean Energy Plan – Analysis’. [online] Available at: <http://www.theclimategroup.org/_assets/files/Briefing-on-Clean-Energy-Future-FINAL.pdf> [Accessed on 14 May 2012]

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