THE carbon mitigation practices of Australia’s farming and forestry sectors will be tradable under the country’s carbon credit scheme, after legislation passed through federal parliament last week.
The Carbon Farming Initiative is separate legislation to the proposed carbon tax, but could potentially work hand-in-hand with the carbon tax when it becomes a trading scheme, potentially in 2014 if the tax is introduced next year and runs according to schedule.
Perth companies Carbon Conscious and CO2 Group welcomed the CFI, and expect more business as a result.
CO2 Group chief executive Andrew Grant said the CFI established a framework for the creation of carbon offsets from activities including forestry, the management of legacy waste such as in landfills, and techniques to reduce methane emissions from livestock.
He added that carbon credits from activities occurring within Australia would be able to be exported.
Equally, it means that Australian companies looking to offset their carbon emissions will have a domestic source of carbon credits and will not have to look offshore to secure them.
Carbon Conscious executive chairman Steve Lowe said the passage of the CFI legislation and the planned introduction of a carbon price made it more likely that up to $190 million worth of commercial tree planting schemes would now proceed.
The National Farmers Federation has remained steadfastly against the carbon tax, but is cautiously supportive of the CFI, and said it was positive recognition of the major role agriculture could play in carbon mitigation.
“We have long said that voluntary, market-based mechanisms, using a carrot rather than a stick approach to carbon abatement, is the best way to engage with farmers in this challenge. The CFI fits this description,” NFF president Jock Laurie said.
Climate change consulting firm Energetics state manager Brian Innes said the farming sector should recognise the potential in schemes like CFI, and more broadly the carbon tax.
“We are not talking about displacing agricultural land, we are talking about getting dual benefits out of the same piece of land,” he said.
Mr Innes said the carbon permit scheme that would be adopted under the carbon tax could open up new market potential for the sector.
“If you follow the dollars, if this permit requirement scheme is around the $10 billion mark, there is the potential for farmers to be making a big percentage of that through their own practices,” he said.
Mr Innes added that a similar scheme introduced in New Zealand has shown that deforestation could be turned around, reforestation could be encouraged, and biodiversity in environmental plantings could be better encouraged.
