Citola Blog
Citola Large Growth Ambitions and now an Australian Public Company
Citola has been reorganised to be an Australian public company (unlisted). In December 2011, Citola Limited (Australia) acquired all the shares of Citola Group plc (UK) as part of the reorganisation. Citola will maintain a London office (and operating subsidiary) to service European clients and promote Citola products into the European markets.
The reorganisation from a UK company to an Australian public company has been to best position Citola to capitalise on growth opportunities stemming from the positive market developments and continuing strength of the Australian economy and the passing of the Carbon Farming Initiative and carbon price legislation.
On 23 August 2011, the Australian Parliament passed the Carbon Credits (Carbon Farming Initiative) Bill 2011 creating a significant new policy framework for Citola’s carbon products in Australia. The Carbon Farming Initiative is the world's first national carbon trading scheme that allows farmers, landowners and investors to generate tradeable carbon offsets from farmland and forestry projects.
On 08 November 2011, the Australian Government passed its carbon price legislation, the Clean Energy Legislative Package. The carbon price legislation will create a significant new market and demand for Citola’s carbon products from 1 July 2012 with Government climate adviser Ross Garnaut stating the Carbon Farming Initiative will be worth over AU $2.25 billion per year.
Citola has extensive operations in Australia has been building operational capacity in-preparation for the CFI including developing a substantial portfolio of property under license for project development, trial planting programs and new bio-diversity planting structures to deliver a unique and differentiated product for large emitters to meet their carbon liabilities.
Australian Carbon Price Legislation - How it Works
A price on carbon pollution creates incentives for businesses to reduce pollution and invest in clean technologies, clean energy generation and land-based activities such as forestry that reduce atmospheric carbon emissions. A market-based approach ensures that pollution is reduced at the lowest cost to the economy. Under the Australian carbon pricing mechanism passed today, approximately 500 of the country’s biggest emitters will be required to pay for each tonne of carbon dioxide they emit into the atmosphere. Modelling by the Australian Government shows that this will create economic incentives to reduce pollution in the cheapest possible way with the incentives to flow through the Australian economy triggering its transformation to a ‘clean energy future’.
The carbon pricing mechanism will commence on 1 July 2012 with a price that will be fixed for the first three years at AU$23 per tonne (rising at 2.5% per annum). On 1 July 2015, the carbon price will transition to a market mechanism (i.e. fully flexible price) under an emissions trading scheme, with the price determined by the market. There will be broad coverage from the commencement of the program encompassing approximately 60% of Australia’s emissions (360M tonne per annum) in the stationary energy sector, transport, industrial processes, non-legacy waste and fugitive emissions. There will be international linking to credible international carbon markets and emissions trading schemes (including the European Union Emissions Trading System – EU ETS) from the commencement of the flexible price period (i.e. 2015). At least 50% of a liable party’s carbon compliance obligation must be met through the use of domestic permits or Australian Carbon Credit Units (ACCUs).
Access Australian Carbon Credit Units
Citola provides client access to a long-term, fixed price provision of Australian Carbon Credit Units (ACCUs) eligible to meet liabilities under the Australia carbon price legislation.
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