CPRS: A Financier’s Perspective: Assessing And Managing Regulatory Risks

INTRODUCTION

The introduction of the Carbon Pollution Reduction Scheme (CPRS) in July 2010 will fundamentally alter the regulatory environment within which entities that are liable under the scheme will operate.

In particular, liable entities will be subjected to a new suite of obligations aimed at reducing the level of national greenhouse gas emissions, including obligations to monitor and report emissions and to acquire and surrender a carbon pollution permit (permit) for every tonne of emissions produced each year.

The scope of entities that may be liable under the CPRS is broad, including:

• electricity generators
• fuel suppliers for road and rail transport
• entities involved in the production, processing, transport, storage and distribution of coal, oil and gas