Understanding Australian Infrastructure Carbon Reduction Initiative 2 Understanding Australian Infrastructure Carbon Red | Page 2

Abstract
Climate change poses a systemic risk with potential to negatively impact the environmental, social and
economic stability of every country. It presents significant risks and opportunities that can alter the risk
return profile of assets for investors and asset managers. The Paris Agreement will help map a pathway
to a safer climate to maintain economic prosperity. We must diligently consider the impact of our
investments on climate change and vice versa to support markets’ long term growth and prosperity.
Introduction
A number of Australia's industries including largest air and seaports have assured to cut 200,000 tons of
carbon emissions by 2030. Broadcasted by Australian superannuation fund manager IFM Investors - who
have ownership stakes in a range of infrastructure assets such as Ausgrid, Melbourne Airport, Brisbane
Airport, New South Wales Ports, the Port of Brisbane, Northern Territory Airports and Southern Cross
Station in Melbourne - the firm said along with co-owners they would "commit to meaningful emissions
reductions, while maintaining returns for its investors. Here we are going to analysis and understand
impact of Australian Infrastructure Carbon Reduction Intiative.
1. Understanding carbon offsetting
Carbon offset schemes allow individuals and companies to invest in environmental projects around the
world in order to balance out their own carbon footprints. The projects are usually based in developing
countries and most commonly are designed to reduce future emissions. This might involve rolling out
clean energy technologies or purchasing and ripping up carbon credits from an emissions trading scheme.
Other schemes work by soaking up CO2 directly from the air through the planting of trees.
Some people and organisations offset their entire carbon footprint while others aim to neutralise the
impact of a specific activity, such as taking a flight. To do this, the holidaymaker or business person visits