From the CCF CEO: Dealing with CPRS, climate change and NGER

What does it mean and what should we be doing about it?
It is difficult to be definitive as the parameters of the carbon pollution reduction scheme (CPRS) are not yet clear.
However, the National Greenhouse Energy Reporting (NGER) requirements have been in place for some time. Impacts are being felt now as companies that meet the thresholds are reporting and seeking information from subcontractors on relevant projects.
CCF Victoria has already engaged with a number of the issues arising from the CPRS and is working closely with the Victorian Government.
What do these terms mean?
To start at the beginning; simply put climate change is the descriptor shorthand for the view that human activity is generating greenhouse gases, severely impacting the climate and that something must be done about it. There is still debate on the issue but the reality is that governments intend to act.
The CPRS is the mechanism by which the federal government intends to take this action. In the broad media you will also see descriptions such as Emissions Trading Schemes or ETS.
The CPRS is called a cap and trade scheme. In other words at its highest level the government has set a cap as to how much greenhouse gases Australia can emit. Entities which meet the emissions thresholds need permits to operate or to pollute. In the initial stage of the scheme, permits will be allocated on a free basis to certain players, but above that cap permits will need to be bought on an open market.
The heart of the scheme is that the price mechanism of the market, will force business to be more efficient in its use of energy, and hence reduce emissions. In other words it “sets a price on carbon.” For our members the biggest impact will be on downstream costs, that is the cost of electricity, gas, fuel and the products they use such as concrete, becoming more expensive. Because our members are generally “price takers” this is of serious concern. There are compensation mechanisms for cost increases, for example for fuel usage. But these are complex and in the case of fuel, designed primarily to assist motorists, and some industries. But guess what: not ours.
Australia has set reduction targets at present of between 5 and 15% below 2000 levels by 2020. If there is agreement at Copenhagen, where governments will be meeting to discuss these issues, then the government has committed to reduce Australia’s carbon pollution to 25% below 2000 levels by 2020.
What is NGER and why does it matter?
In July of last year companies (i.e. so called constitutional corporations) were required to start reporting their emissions under NGER.
The NGER Act introduces a single national reporting framework, for the reporting and dissemination of information about greenhouse gas projects, and energy use and production of corporations.
Corporations who meet the NGER threshold must report their:
•    Greenhouse gas emissions;
•    Energy production;
•    Energy consumption; and
•    Other information which is specified under the legislation.
Generally speaking most of our members will not have to report this data in their own right. However, as many head contractors have to do so, they need information from sub contractors to meet their own requirements.
Most importantly, NGER will underpin the CPRS, and it will be expanded so a broader group such as local government and state instrumentalities such as main road departments, will be required to report.
NGER requirements are however here and now and are the current priority of the Federation.
The CCF Victorian Branch has taken a lead and is doing a great deal of work with members on climate change generally and reporting issues.
The three key issues for the Federation relate to:
•    Member assistance and education on why they have to provide this data;
•    Preparation of standard templates for all reporting so that our members are not providing the same information in different formats to different parties; and
•    Member assistance on how information is recorded.