Carbon lightweights could trade short

Low carbon emitters could bear the burden of an emissions trading scheme, according to research by consultants from Business Development Partners. Businesses with relatively low emissions would have to pay for increased costs passed from suppliers.

The study showed a carbon price of $20 a ton would equate to additional costs of about $11.5 billion for business through higher prices for carbon-intensive goods, which could translate to up to 48 percent off pre-tax profits of companies further down the supply chain.
 
The report indicated that construction businesses may be hardest hit due to its use of emissions-intensive building materials: “The introduction of a carbon price will see an unprecedented shift in the economics for companies in many industries as a result of these changes in input prices.”
 
Professor Ross Garnaut released his final report from his climate change report this week. The Federal Government will announce their actions later this year.