High growth in low carbon markets

Australasian companies need to look harder at getting involved in low carbon projects in developing countries, according to a discussion paper released by Sinclair Knight Merz (SKM).

James Muir, clean energy advisor with SKM, argues that for companies to be able to find the lowest cost emission abatement options, both domestic and international markets need to be accessible under future emissions trading schemes.

He states that while many firms are becoming engaged in discussions about national and state carbon trading schemes, low carbon projects in the Asia-Pacific region present tangible, but as yet underexploited, commercial opportunities.

At a Thought Leadership Forum held by SKM, Muir presented a discussion paper entitled "˜High growth in low carbon markets'.

In the paper, Muir points out that because domestic carbon credits are often in limited supply, by buying into projects in developing nations, Australasian firms can reap a triple benefit for themselves.

Scientists and economists suggest that the global community needs to bring about a 75% reduction in greenhouse gas emissions per unit GDP by 2050 to avoid the most serious climate change impacts without major disruption to the global economy.

However, recent experience shows how difficult it is, even for developed countries to reduce greenhouse gas emissions in the short term.

This suggests that before the commercialisation and widespread uptake of the next generation of low-carbon technologies, interim measures are required.

Muir maintains that one element of this will be for developed countries to provide technical and financial support to assist developing countries slow the growth of their greenhouse gas emissions.

"Through the framework of the Clean Development Mechanism, the carbon credit value of new projects in the Asia-Pacific region can be certified and assist firms in meeting increasingly stringent emissions trading requirements in their home markets," Muir said.