Geoff Hall, director of agribusiness, RSM Bird Cameron, offers his insights into the opportunities with carbon storage in trees, which could become a major potential income stream for farmers in the future.
Regardless of which political party is in power and whether there is an Emissions Trading Scheme or not, Australia will still look to carbon storage through reforestation (biosequestration) as a major component to meeting its carbon emissions reduction targets.
For many farmers, carbon storage in trees could be a major potential income stream in future but great care will need to be exercised in any plans to commit to a qualifying carbon sink forest.
The Federal Government plan under the Carbon Pollution Reduction Scheme (CPRS), for which legislation has so far failed to pass the Senate, is to issue carbon credits for carbon stored in carbon sink forests issued at the rate of 1 carbon credit per 1 tonne of carbon dioxide equivalent stored. These carbon credits can then be traded as part of the CPRS Cap and Trade scheme allowing Australian companies with emission reduction targets to acquire credits to offset their greenhouse emissions. Read more ❯