In a letter to company employees Anthony Pratt, executive chairman of Visy explained that Visy’s total carbon emissions of about 1.6m tonnes put it on the list of the nation’s Top 500 emitters.

He says, “We have been unable to get the Government to recognise the environmental benefit of Visy’s recycling activities, which actually reduce greenhouse emissions to a much greater extent, than the total emissions our operations produce.

“However we have received temporary exemptions for those emissions from our recycled and Tumut paper making activities. If that assistance were removed in future years, the annual impact of a $23 a tonne Carbon Tax on Visy would be at least $37m a year, rising over time.”

The company spends about $150m a year on energy, and claims the additional $12m impact of the Carbon Tax will add significantly to its current annual energy costs even before the impact of any future increases in energy prices is factored in.

The letter outlined the company was has now begun steps to move to less carbon-intensive and more cost-effective fuels, reduce energy use and increase energy efficiency as much as possible. The company also plans to reduce its disposal of waste to landfill because the Carbon Tax will also apply to the amount of waste disposed at the tip.

Pratt says, “While the additional $12m in annual costs to the business will be hard to bear, there is also some potential upside for Visy through some of the energy efficiency and renewable energy investment funds that the Government announced along with the Carbon Tax.

“It is possible Visy may be able to apply for funding for major energy efficiency measures and future clean energy investments like the “Clean Energy from Waste” plant that we currently have under construction at Coolaroo.”

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