Introduction
The carbon pricing mechanism (the Mechanism)
will have particular implications for the construction industry.
This paper focuses on the implications for construction, including
in particular:
- Costs for the industry.
- Risk allocation.
- Carbon liabilities.
- The implications for both existing and future construction
projects (and contracts).
Application of carbon tax
The residential and commercial building sectors produce 23 per
cent of Australia's greenhouse emissions. Although the carbon
tax covers a broad range of industry sectors, it is important to
note that only facilities directly responsible for emitting carbon
pollution will have obligations under the Mechanism to reduce their
emissions or purchase carbon permits. As the construction industry
principally contributes to emissions indirectly, through its
acquisition of materials, resources and services (for example
cement, steel, electricity, transport and waste disposal)
