Carbon Conscious alert to ETS future

Carbon offset company Carbon Conscious says the loss of its biggest contract with Origin Energy and the government's scrapping of the carbon floor price will not be a huge blow to its finances this year reported the Sydney Morning Herald. Carbon Conscious has shrugged off the timing of the contract loss from Origin on the same day the government scrapped the proposed AU$15 floor price for its emissions trading scheme (ETS) as a "coincidence".

Carbon Conscious has planted more than 15 million trees for oil and gas producer Origin Energy in the biggest carbon bio-sequestrian project in the country. On Tuesday, Origin Energy announced it would not proceed with its 2013 planting options, placing further uncertainty on the cost effectiveness of carbon forestry as opposed to carbon unit trading. But Carbon Conscious director of business development Daniel Stevens said Origin's announcement was made before the government's, and was not linked to it.

Carbon Conscious, one of only two of its kind in Australia, on Friday delivered an almost five-fold profit increase for 2012, beating its January forecast by 20 per cent. Profits rose to $4.19 million for the year to June 30, from $854,762. But despite losing its biggest client, the firm is upbeat on this year. It said it had locked in contract revenues of $45 million in the next 15 years, and was in talks with several new clients from the mining, electricity generation and coal industries on potential contracts. Source: Sydney Morning Herald

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