The business community is bracing for the cost of next year’s $23 per tonne carbon tax. While households and larger polluters will receive financial assistance, small to medium business will not be cushioned against rising costs. Planning ahead, reducing energy use and buying green including environmental cleaning products will help soften the blow.
After much debate the carbon tax details have at last been revealed, giving business the opportunity to take steps to reduce its financial impact.
The latest advice from green business experts is to look beyond the cost of rising power bills and fuel prices.
A holistic policy based around buying green products (such as environmentally friendly liquids) and services will also reduce the impact of the carbon tax.
This corporate philosophy – dubbed sustainable procurement – has been adopted by larger organisations and government bodies but has not yet been embraced by the wider business community.
Green procurement expert and advocate Hugh Wareham has called for business to plan ahead, claiming sustainable purchasing will help avoid rising costs expected under the carbon price. Joining the green revolution will also provide a positive boost to corporate image and consumer confidence.
“The carbon price will impact prices across every sector of manufacturing and business, so companies should also expect increases in the cost of all their input goods and services,” he said in a column for industry news site Environmental Management News.
“While there are some tax breaks for small business, the majority of organisations will have no direct financial assistance to offset the impact of this new tax and will need to seek opportunities for minimising their costs.
“Green purchasing is a key way to reduce an organisation’s exposure to the hidden costs of the carbon price.”
Calculating greenhouse emissions
Greenhouse emissions resulting from the direct use of electricity, gas and fuel can be calculated by referring to fuel and utility bills for consumption rates. Online calculators, such as the Federal Government’s NGERS calculator can help convert energy consumption into emissions. Applying the $23 per tonne carbon emission price will show the increased cost of direct energy use.
This is only part of the picture. The cost of goods and services are also expected to rise as suppliers try to offset their own cost increases. In fact, a study by the National Institute of Economic and Industry Research found that half of all carbon consumed by Victorian households was embodied in goods and services.
Environmentally friendly products
The carbon tax may be a sound impetus for changing to green products and services, but the benefits do not end with financial savings.
Leading environmental cleaning products company Envirosafe Solutions has not only embraced sustainable procurement at a corporate level but has been proud to help industry avoid the environmental and health hazards posed by toxic chemicals.
Its Extreme Green range can be used to replace nearly all industrial and commercial cleaning products. Formulated to reduce toxic chemical build-up and soil and water contamination, these eco-friendly industrial liquids carry an independent safety rating for environmental, health, transport and safety purposes.
For the carbon tax to work people need to change their spending habits and use less energy. Green products such as Envirosafe Solution’s environmental cleaning products are a great way to join the green revolution. For more information contact 1300 88 90 70 or email info@evss.com.au.
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