Australia | Jul 24 2007
By Rudi Filapek-Vandyck and Greg Peel
And this week’s public relations price goes to… telecommunications minnow M2 Telecommunications (MTU). As it turns out M2 has been the first to place an order to purchase $5000 in carbon offsets on the newly established Australian Climate Exchange (see also our story “Carbon Trading Takes Another Step Toward Reality” yesterday).
Vaughan Bowen, managing director of M2, is quoted in the press release as saying “While the carbon footprint generated by the telco industry is not as substantial as other sectors, every sector should be contributing.” While M2 is not amongst the largest corporations in Australia (severe understatement), Bowen believes leadership or initiative doesn’t have to only come from big companies.
And the magic number is…$8.50. Yes, the total day’s turnover on the ASX was a modest $13,610 but then new markets rarely start with a bang. The ACX is only part of a fledgling carbon trading market in Australia that possibly won’t become a mandated reality until 2012 (2010 under Labor). A price of $8.50 per tonne of CO2 equivalent reflects both the infancy of the market and the fact the traded contracts are only voluntary certificates at this stage. Analysts have been anticipating an ultimate carbon trading price of something like $20/t, while global watchers have predicted as much as US$40/t for an international market – whenever that might occur.
The challenge for the ACX as a viable market will be to exploit the market that is supposedly there, meaning it will need to encourage suppliers of carbon credits to sign up for voluntary certificates and provide a legitimate supply side. There is certainly interest from polluters – even as oblique as M2, to wave the “carbon neutral” banner.
Another challenge for the ACX is to put its trading numbers up on its www.climateexchange.com.au website which so far shows all zeros.
