The debate over a carbon tax is over but the time for action has come

For the immediate term, the debate in the business community about the relative merits of a carbon tax and Direct Action is over. This year, the question confronting companies is – are you in or are you out?

Until now, with uncertainty as to whether the Emission Reduction Fund would ever come into operation, companies may have not done the calculations on whether to bid for government contracts to reduce their emissions.

The ERF legislation finally passed through both houses of Federal Parliament late last year and companies must now decide whether it is worth the expense and the effort to bid for contracts totalling $2.55 billion.

For those wishing to get a first mover advantage, time is relatively short. The Environment Minister has indicated that the first ERF auction will be held in the first quarter of this year.