Carbon Pollution Reduction Scheme and farmers
FACT SHEET 5
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Many agricultural activities generate greenhouse gases. For example, livestock emit methane and nitrous oxide is released when synthetic fertilisers are used. Farm businesses also produce emissions through their use of transport fuels and electricity. It is estimated that 16 per cent of Australia's greenhouse emissions come from the agricultural sector
Why won't agriculture be included when the scheme starts?
Including agriculture in the scheme from commencement would be difficult because of the problems associated with measuring agricultural emissions at so many locations across Australia.
The Government considers that agriculture should be included in the scheme when practical. This will increase opportunities for low-cost emissions reductions and ensure that the cost of achieving these reductions is shared equitably across the economy.
The Government has decided the earliest the agricultural sector could be covered is 2015. The Government proposes to make a decision on inclusion of agricultural emissions in 2013. This will allow time to consult with the industry on approaches to coverage and to improve the measurement of emissions from agriculture.
How will the scheme affect farmers?
Studies show that most businesses can significantly improve their energy efficiency. There is potential for improvements in energy efficiency to offset much of the increase in energy costs.
Abatement opportunities for farmers
Tree planting is one the few cost-effective abatement opportunities currently available in the agriculture sector. The Government proposes to credit increases in forest carbon (that are counted towards Australia's Kyoto target) by allowing forests, including environmental and landcare plantings, to be included in the scheme on a voluntary basis.
The Government does not propose to allow offsets from agricultural emissions that could be included in the scheme from 2015. This is because there is unlikely to be sufficient time for an offset mechanism to be established and for the sector to benefit from this in the short period prior to coverage.
July 2008
