Climate change and global warming pose a considerable threat to the world, and in particular to Australia. To reduce the country?s greenhouse gas emissions, the Carbon Pollution Reduction Scheme (CPRS) has been announced. The following thesis provides a current economic assessment and analysis of company perceptions regarding the Australian CPRS. At first, the phenomenon of global warming is presented in the Australian context. It will be assessed how this environmental threat affects the climate, ecology and economy in Australia and elsewhere. In a next step, the theory of environmental policy is presented and the most suitable policy choices to tackle the problem of climate change are evaluated. It is analysed whether an emissions trading scheme (ETS) like the CPRS is the most effective choice for climate change mitigation. Following a detailed presentation of the main characteristics and features of the CPRS, expected economic effects are outlined. In the next chapter, the empirical results of an online survey about company environmental representatives? perceptions regarding the CPRS are presented. It is evaluated how the respondents perceive climate change and the CPRS, how well they are informed about the scheme, and how they respond to a consequential price increase. It will furthermore be outlined how environmental representatives vary in their opinions according to several characteristics like company size and location. In the final chapter, the results of the economic assessment and the empirical analysis in combination with experiences of the European Union ETS are drawn upon to compile a critical evaluation of the current CPRS design, and to provide useful suggestions for possible adjustments to, on the one hand, enhance effectiveness and efficiency of the scheme, and on the other hand, to prepare the CPRS for international emissions trading.