Australian Business Expenditure in Sustainability Increases

A study conducted by a leading British research firm shows data on how the carbon tax will affect Australian businesses from various sectors of the economy. The research utilised a total of 139 known firms in every sector to conclude the study.

The data showed that Australian businesses are expected to have an annual increase in total expenditure of 13%, from driving business sustainabilityand investing in better manufacturing processes and business models to shielding themselves from ongoing cost related to the carbon tax and energy price rises.

The research also demonstrates how businesses will prioritise sustainability spend and innovations; figures show that in 2011 alone an average 16% of sustainability spending was directed towards energy efficiency, renewable energy like solar power and water saving mechanisms.

Under the carbon tax the study revealed that low and or no carbon technology investments will also increase up to $319 million, with a large proportion of that expected to be in renewable energy like solar PV systems. In total the new price on carbon is projected to grow the Australian sustainability market by more than $3 billion by 2014.Generally speaking the carbon tax will incentivize sustainability investments from the top 500 biggest polluters as soon as it is implemented on July 1, 2012.

The study also forecast 5 major initiatives that spending will significantly increase on;

1.       Smart grid development and implementation

2.       Electric  vehicles and infrastructure

3.       Regulatory affairs and lobbying

4.       On-site renewable energy and Energy

5.       Carbon data management

All of which will have a compound annual growth rate of 21% or more from 2009 levels up to 2014.

The research shows that the purpose of the carbon tax will be fulfilled; key sustainability aspects of the economy will continue to grow, and the carbon price will pave way for a low carbon economy and economic growth.