FEATURE ARTICLE
The Green Paper: agricultural uncertainty persists
The ETS proposals outlined in the Green Paper are designed to give effect to the government’s commitment to reduce annual Australian greenhouse emissions by 60%, so that 2050 emission
levels are only 40% of those recorded in 2000. This means that over the next forty years Australia aims to reduce net greenhouse emissions by approximately 1.5% of current
levels, or around 8 million tonnes CO2-e per year, every year. This may not sound like a big task, but bear in mind that were it not for the 40% reduction in greenhouse emissions from
agriculture over the past eighteen years, current Australian annual greenhouse emissions would be approximately 140% of 1990 emissions, and growing by more than 1.5% every year.
The Green Paper notes the significant difficulties associated with measuring and monitoring the greenhouse emissions that are attributed to agriculture. This is because agricultural emissions arise from a range of different sources including livestock, fertilisers, soils, pasture and crop burning and the breakdown of manure and urine. These emissions are produced on an estimated 150,000 farm businesses, which collectively account for 15.6% of total Australian emissions. In contrast, just 1000 businesses that will be required to be direct participants from the inception of the ETS collectively account for an estimated 75% of national emissions, and are therefore a much more administratively efficient ‘target’ than businesses in the agriculture sector.
One option canvassed in the Green Paper is that, rather than direct ETS participation by farm businesses, the point of obligation for farm emissions could be transferred upstream (to abattoirs, grain merchants and dairy processors) and downstream to input suppliers such as fertiliser manufacturers. While administratively efficient, this proposal would make it very difficult for farmers and processors alike to find ways to reduce emissions, and would effectively amount to a tax on farm businesses. | | REGULAR FEATURES
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