The Garnaut Review: What do emissions-intensive trade-exposed industries really think about emerging climate change policies?

Abstract

Purpose: Following the Australian Government's Garnaut Climate Change Review (CCR), the implementation of a joint business and climate change agenda is weighing heavily on the minds of those executives whose firms fit within the Emissions-Intensive Trade-Exposed Industry (EITEI) sectors. The purpose of this paper is to analyse and explain the major concerns that confront EITEI firms as the government moves Australia towards a low carbon economy. Design/methodology/approach: The paper adopts an economic regulation perspective that focuses on public and private interests, coupled with the leximancer software package, which was used to analyse submissions made by EITEI firms to the Garnaut CCR. Findings: The authors observed that the impact of costs on business and trade performance, future emissions trading schemes, investment in low emissions technologies, world greenhouse gas production levels in emissions-intensive industries, and conflicting government policies form the foundations of serious corporate-level concerns and uncertainties. Research limitations/implications: The paper highlights that private interests, as expressed in the analysed submissions, intersect with the public interest and need to be addressed seriously. Practical implications: Suggestions for a cooperative approach to addressing climate change that would involve businesses and governments are also put forward. Originality/value: The paper utilises an economic regulation perspective to explain a practical issue and has implications for future climate change policy development.