Carbon Pollution Reduction Scheme - sustainability and financial response to Rio Tinto Group

Variations in the climate have been at the forefront of environmental and economic affairs as the impact had been devastating to all members of the global community. Climate change threatens Australia´s agricultures, water supply and other correlated industries. Australia´s federal government passed legislation to implement the Carbon Pollution Reduction Scheme (CPRS) legislation in May 2009 that aims to reduce Australia´s Greenhouse Gases (GHG) emission, in order to combat climate change. This scheme is designed to assign a cost to carbon dioxide equivalent gasses that are being emitted by businesses in order to push them to employ more environmental friendly methods and encourage responsibility toward the environment. This report will provide a deeper understanding of the effect of CPRS will have on businesses in Australia, in particular on Rio Tinto. An analysis of the possible financial implications of the CPRS will be done in order to gain more insight into how Rio Tinto will adapt its operational activities in response to the CPRS and the consequences thereof.