“Investors see no material earnings risks for emissions-intensive, trade-exposed companies from the early years of a Carbon Pollution Reduction Scheme (CPRS),” Chair of the Investor Group on Climate Change (IGCC), Mr Frank Pegan said today.
“Far from putting companies in financial trouble, the CPRS will have a negligible financial impact on Australian companies in the early years,” Mr Pegan said.
“The Government’s proposed CPRS has sufficient compensation to ensure that company profits and existing investors will not be impacted over the short to medium term,” Mr. Pegan said.
The comments are based on analysis performed by IGCC member Goldman Sachs JBWere (GSJBW) on the earnings impact of the Government’s revised CPRS proposals on the S&P/ASX100. GSJBW released the research to clients after the Government’s planned changes to the CPRS were announced on Monday.Click here to download a copy of the media release