Origin Energy Limited is an integrated energy company whose businesses are focused on gas and exploration and production, energy retailing and power generation. The company is listed as Top 20 in ASX list as such company is a largest and leading company which mainly produces gas and holding the position of biggest retailer of energy in Australia.
Due to global warming, Origin Energy Limited has adapted few rules and policies in reducing the carbon emission. Origin Company is emphasizing on sustainability of its operations as the largest green energy retailer in Australia. Moreover, such company has invested significantly in renewable energy technologies.
However, due to implementation of new Carbon Price Scheme by Australian Government which commencing on 1 July 2012 is going to bring some impacts to the operation and cost of the company.
a) Briefly discuss your understanding of carbon pricing in the Australian context
Carbon footprint is the accumulated amount of greenhouse gasses that emitted from daily human activities (Global Footprint Network 2011). For an instance, driving a car can add to an individual's carbon footprint. In order to lower down the carbon footprint, carbon pricing is set by governments of some countries as it is an administrative approach that helps to motivate people, businesses and countries to reduce emission of carbon (Global Greenhouse Warming 2012).
In the context of Australian, the country has imposed few rules and measures for lowering down the emission of carbon dioxide.
The Commonwealth Government has passed the legislation of introducing a Carbon Price Scheme commencing from 1 July 2012.The carbon price will be fixed like a tax for the first three years of the Scheme. Hence, liable entity needs to submit carbon units for every tonne of…