Climate Change/Carbon Trading

CRM is working with BEAT, the NFF and other state farming organisations to represent the Agriculture's views on climate change policy to the Federal Government. Key considerations include the design of the Australian Emissions Trading Sceme (AETS), which is set to commence in 2012, and the need for significant R&D funding to support adaptation to climate change and development of techological and policy solutions.

Key objectives of this priority area include:

• Influencing the design of the AETS to ensure that rules do not disadvantage farmers, and allow a full range of offset credits to be created within productive farming systems (eg in soil, crops and ground cover, and by adopting renewable technology).
• Obtaining major funding for an agricultural industry R&D program to support adaption to climate change and develop the details of climate change policy, including farm carbon accounting and farm offset schemes.
• Building partnerships with the renewable and waste sector to recyle carbon within farming systems and create new sources of renewable energy for regional industry and communities.

Climate Change Information Kit

Missing billions for carbon in native vegetation

Clearing bans introduced in the 1990s have enabled the government to meet Kyoto emissions reduction targets.

Article 3.7 of the Kyoto protocol is known as the “ Australia Clause”

This is because Australia insisted on its inclusion when the Kyoto protocol was developed.

The Australia clause allows nations to treat reduced land clearing as emission reduction.

The government fought for the Australia clause because it wanted to allow increased use of coal for energy and realised it could use clearing bans to offset these addition coal emissions.

Clearing bans have enabled Australia to meet its Kyoto target while at the same increasing emissions from coal fired power stations by 50% since 1990.

If the government had not locked up native vegetation on private land, Australia would be way over its Kyoto target and in breach of the treaty.

Carbon credits requisitioned  by the government via clearing controls have been valued by the Climate Institute at $1.8 Billion (at a carbon price of $25 tonne)*.

Needless to say, there is no prospect that either the government or the energy sector will pay farmers for these credits.

The Climate Institute report, written prior to Australia signing the Kyoto Protocol, makes interesting reading:

• Mission Billions: How the Australian Government Climate Policy is Penalising Farmers *
  Climate Institute: October 2006

Fact Sheets