What does it cost for firms to report on emissions and other carbon mitigation regulations?

Maybe there is a vast literature on this topic but I suspect there is not because quite likely the accounting and administrative costs exceed the impact of RE on power prices. This is a “strictly for nerds” paper on a British study “Climate Change and Mandatory Carbon Reporting: Impacts on Business Process and Performance” There does not appear to be any attempt to assess the cost of the reporting systems.

This study found that the influence of carbon reporting varies by sector and depends on key variables such as energy intensity and regulatory status. In the case of carbon reporting, CSR requirements designed to nudge firms into action have had important impacts on firms, but more on their internal operation and outward face than on the external environment itself. Arguably those internal changes are preconditions for substantial shifts in the environmental impacts of business, but the case of carbon reporting suggests reasons for caution about the enthusiasm sometimes invested in CSR. We found some evidence of reporting to report and greenwashing, as well as of ecological modernizing, but overall the impacts of carbon reporting seem modest.
References

The article may be behind a paywall and hence only accessible to university Cats with access to the electronic literature of academia but I don’t expect anyone to read it right through (I didn’t), just to be reminded that a lot of effort is being expended for no useful purpose.

This entry was posted in Global warming and climate change policy, Oppressive government, Rafe. Bookmark the permalink.

9 Responses to What does it cost for firms to report on emissions and other carbon mitigation regulations?

  1. stackja

    Again someone is making money at others expense.

  2. Nob

    The main aim is achieved:
    Firms forced to hire value-destroying greenies.

  3. Rohan

    The Victorian EPA now mandates energy usage be incorporated into NPI reporting process. Luckily our processes are straight forward (we are a tiny chemical manufacturing business) so I have our electricity bills emailed to myself and I then feed our usage into a spreadsheet once a month. Takes 5 minutes so figure an hour pa to collect the data. It then takes about 2-3 hours to do the report when it’s due, as their online portal sucks.

    I imagine that for a bigger more complex organisations, it would be a costly nightmare and very time consuming.

  4. Tezza

    The Australian National Greenhouse Energy Reporting Scheme should have been subject to a regulation impact statement at its creation in 2007; that analysis should still be available, for what it is worth. I remember at the time that NGERS mandated a number of approximations for different sources of emissions, and was in the news mainly for imposing criminal penalties on any company officers in breach of NGERS requirements.

    More info is at http://www.cleanenergyregulator.gov.au/NGER/About-the-National-Greenhouse-and-Energy-Reporting-scheme

  5. gowest

    Tally up the green taxes and include them on the balance sheet – its the only way for us to find out how much we will save by getting rid of them.

  6. Nighthawk the Elder

    I worked for a major coal fired generator, where NGER reporting largely revolved around millions of tonnes of coal per annum consumed.

    But I also recall the great plethora of other items also requiring reporting, including any fuel used by small engines. This included the local contractor who mowed the lawns around the admin building, whose annual consumption was below the reporting thresholds for his business, so he was counted in ours. We’re talking a few tens of litres of petrol per annum and all of it had to be audited and verified. This verification work was usually carried out by the Quality Manager and one, sometimes two senior engineers. (Think of the salaries being wasted on highly paid staff undertaking trivial reporting of zero value). This crap really took on a life of its own during the RGR years.

    Just as a side note, we did ask the relevant regulator (from memory it was the Australian Greenhouse office at that time) was there a threshold for reporting of trivial amounts compared to the rest of the facility and was it necessary to report a few litres of lawn mower fuel in the context of millions of tonnes of coal. It took them 6 months to get back with the answer of they didn’t know, but we should report it just in case. Oh and that we should report the proportion of 4 stroke Vs. 2 stroke fuel and the different 2 stroke oil ratios used for different engine types. And verify it.

  7. Dr Fred Lenin

    Any government I lead will spend the first year repealing green laws and other un needed crap. We will form a large investigtive body of detectives and forensic acountants to investiate the criminals who profited from he scam and introducelaws confiscating family assets of the convicted . Mandatory jail sentences with a minimum 7 years without remission will be introduced . The owners of the sccam farms will be forced to restore all sites to pristine codition at their expense . The. Media will be prosecuted for Lie Speech and Fake news ‘lies with huge fines and jail terms .

  8. Many Australian companies, over and above the 250 ‘polluters’ have to report their emissions.

  9. Ian of Brisbane

    Does anyone read the data?

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