Financial services to benefit from carbon pricing
The financial services sector is likely to be one of the major beneficiaries of the Government’s carbon pricing scheme, according to a report from IBISWorld.
Accountants and other financial professionals will benefit in the short term due to changes in the national tax structure, the report stated.
The lowering of the tax-free threshold, rising marginal tax rates and increased Government handouts would all spur demand for financial services, according to the report.
The sector will then receive another major boost with the shift from a fixed carbon price to an emissions trading scheme from 1 July 2015, according to IBISWorld.
“Big banks and other financial institutions will be actively involved in the operation of the carbon market through the trading of carbon permits, while demand from polluters and other businesses to hedge their carbon exposure and speculate on the carbon price will drive the development of a range of new derivatives products,” the report stated.
“Financial institutions will also be involved in trading Australian carbon credits in other markets, notably the European Union.”
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