Posted on: 16.05.2012
Launch of Australian Greenhouse Benchmark Indexes
RepuTex’s new Australian Greenhouse Index indicates that emissions from companies covered by the Australian carbon price mechanism are set to grow more than 15% between now and 2020.
However, while emissions in the Australian carbon market will continue to climb, some companies, including BHP-Billiton, Wesfarmers, Xstrata, Rio Tinto and Centennial Coal, are set to cut emissions over the next decade.
The figures are brought to light with the release of RepuTex’ Greenhouse Index Series which provides the Australian market with its first benchmark of greenhouse gas emissions at ‘whole of market’ and ‘industry’ level.
RepuTex’s index series comprises one headline index for total national emissions, five sector sub-indices and twelve industry sub-indices. The indexes are calculated in Total Emissions, Average Emissions and Emissions Intensity constructs, providing companies with an independent benchmark against which they can compare their emissions, and report internally or externally.
For Traders, RepuTex Greenhouse Indexes provide vital ‘forward looking’ information to forecast carbon market fundamentals, such as market balance, supply and demand pricing trends through to 2020.
According to RepuTex, increased LNG output over the next decade will drive the 15% rise in carbon market emissions, with RepuTex’s Energy Greenhouse Index forecast to rise a whopping 150% over the next decade.
Emissions from the Power (4%) and Materials (3%) sectors are also forecast to rise, with emissions from the highly carbon intensive Metals sector set to drop 13% by 2020. Mining emissions are expected to stay relatively flat, rising only 0.3% over the period.
On the surface, while emissions look to be rising in key industries, on closer comparison key companies are slowing their emissions growth (through to 2020) against the new industry benchmarks.
RepuTex emissions forecasts indicate that companies such as Woodside, Queensland Gas and ConocoPhillips will grow their emissions 2-3 times current levels over the next decade, yet against RepuTex’s benchmark LNG Greenhouse Index, which is forecast to rise over 450% to 2020, these companies are well positioned, with emissions outputs well below industry and market averages.
In the Mining industry RepuTex forecasts its Mining Greenhouse Index to stay flat over the decade, yet many majors are predicted to outperform the benchmark and register larger emissions reductions, such as Anglo American, BHP-Billiton, Wesfarmers, Xstrata, Rio Tinto and Centennial Coal.
To date the corporate segment has not had an independent benchmark of industry emissions, so corporate reporting of emissions levels has lacked a reference point. Likewise traders have lacked fundamental data to derive carbon market supply and demand information.
As part of the launch of its new index series, RepuTex released a list of leading companies whose emissions are forecast to be lower than RepuTex’s sectoral greenhouse benchmarks through to 2020.
Emissions leaders are derived from a universe of companies covered by the Australian carbon price. Leaders were determined according to RepuTex emissions forecasts 2011-2020 versus RepuTex Sectoral Greenhouse Index trend over the same period.
|RepuTex Greenhouse Index
||Top Companies – Emissions Below Benchmark
|RepuTex Energy Greenhouse Index||AWE LIMITED
ENI AUSTRALIA LIMITED
|RepuTex Mining Greenhouse Index||RIO DOCE AUSTRALIA PTY LTD
RIO TINTO LIMITED
|RepuTex Metals Greenhouse Index^||BLUESCOPE STEEL AUSTRALIA|
|RepuTex Materials Greenhouse Index||PENRICE SODA HOLDINGS LIMITED
|RepuTex Power Greenhouse Index||SNOWY HYDRO
ORIGIN ENERGY LIMITED
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