KEY POINTS:
Some of Australia's largest energy companies are positioning themselves for a carbon-restricted world but in the absence of a clear regulatory environment, they are uncertain how much to risk on investments to reduce emissions.
Big hitters such as Chevron in Western Australia, Santos, Rio Tinto and Worley Parsons are all positioning themselves to take advantage of carbon-related opportunities.
BP Australia and Rio Tinto are involved with hydrogen energy with carbon sequestration, also known as geosequestration, where carbon dioxide emissions are captured, compressed and injected deep underground.
However, as the industry looks to make incremental improvements, Citigroup director of research Elaine Prior said regulatory clarity was required to formulate the framework for major project decisions.
"Real momentum with such opportunities, some of which involve multi-billion dollar investments, requires a strong carbon price signal," she said.
"Australian companies see potential opportunities to grow these types of businesses overseas. Clean coal technologies commercialised in Australia might, for example, be used in China."
The International Energy Agency said that in the next 25 years US$20 trillion ($28.34 trillion) would need to be invested in new energy technologies, and think tank Environment Business Australia (EBA) said that in Australia this investment should be directed towards low to zero emissions infrastructure.
"Australian business can take a lead in this sector and export the technology," said EBA chief executive Fiona Wain.
Other firms are making moves to pounce on carbon-related breaks such as General Electric's Ecomagination products, which are part of its wider corporate sustainability initiatives targeting renewable energy, clean coal and products ranging from lower emissions aircraft engines and hybrid locomotives to recycled bottle chandeliers and disposable paper office furniture.
At last week's Apec summit, the 21 leaders signed a declaration agreeing to work towards "aspirational" goals on emissions.
- AAP
