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The Climate Change and Greenhouse Emissions Reduction Act passed this week sets up a voluntary framework for businesses, but threatens a mandatory scheme if progress is not on target.
The act, which is expected to be proclaimed within a week, also legislates an increase in renewable electricity generation to 20% of that generated in SA by 2014. To create demand it also aims for 20% of the power used in the state to come from renewables by 2014.
The legislation provides for voluntary agreements between business and government, establishes a voluntary carbon offsets register and sets up a Climate Change Council to provide an independent view on how collaboration can work to achieve the targets.
But no individual companies are targeted and no energy use threshold is set to compel involvement. The government aims simply to consult with business to encourage change.
Lachlan Parker, a spokesman for Premier Mike Rann, said the voluntary nature of the legislation does not mean it has no teeth. A major report due at the end of 2009 will see the government review progress against the targets and consider whether mandatory measures are required.
"There is a requirement to report progress against targets every year, with a major report of progress against targets required every two years," he said.
"The two yearly report has to be subjected to independent assessment by the CSIRO or like body. The new Climate Change Council has also to provide an annual independent assessment of the government's progress towards its targets."
An industry source told EMN the affect on business could depend on the up-take of low emission technology such as efficient air conditioners and thermal hot water, as well as efficiency standards. Emission reduction strategies for business would need to be supported by the government in the form of auditing and technical services.
"Government needs to simplify the up-take of low emission technology. Most big businesses have already joined the Australian Greenhouse Challenge Plus program [and] energy efficiency becomes harder the longer you do it, so it remains to be seen how much more business can implement," they said.
"It will be a rude shock to business as soon as it become mandatory."
