A 2012 Carbon Price For Australia – Medium Cap Firms at Risk

Posted on: 25.10.2011

MELBOURNE, 25th October, 2011 – New research released today by RepuTex indicates that the Australian Government’s Carbon Price Mechanism (CPM) will cost S&P ASX 200 companies AUD $18.7bn over a ten year period from FY 2013-2022, with high polluting medium and small capitalised Materials and Industrials companies faring the worst.

According to RepuTex: 

• Before any carbon costs are passed through, S&P ASX 200 companies are expected to face cumulative direct and indirect carbon costs (after Government Assistance) of approximately AUD $33.4 billion from FY 2013 through to FY 2022.
• RepuTex estimates that 43% of the above cost, or $14.6b, is expected to be passed through to consumers, leaving S&P ASX 200 companies liable for $18.7b over the 10 year period.
• All firms will be exposed to an indirect cost through the purchasing of electricity and supply chain inputs. These liabilities account for 43% of the total S&P ASX 200 carbon cost.
• Mid and small capitalised Materials and Industrials companies face the highest earnings impacts due to their lower revenues and generally lower levels of diversification.

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