Apr 19, 2011 - 4:00am
The Climate Institute welcomes the opportunity to present the Committees with our views on the Bills currently before the Parliament, and, consequently, the proposed Carbon Farming Initiative (CFI or ‘the scheme’).
On the whole, The Climate Institute is reasonably confident that the Bills strike a balance between the scheme’s twin principles of environmental integrity and broad participation. The Institute is therefore broadly supportive of the proposed scheme, although we submit that a better balance is still possible, and that other policy measures are prerequisites to the scheme’s success. In essence, these are:
- A price on industrial carbon pollution—linked to the CFI—without which demand for abatement in the land sector will remain low; and
- Additional funding, of at least $200 million over four years—drawn from carbon price revenue if necessary—to establish a strong mitigation research, development, extension and commercialization programme for the land sector.
This submission touches on the importance of a price on pollution, the managing of risks to the price signal and revenue, the minimisation of perverse outcomes and maximising of participation, environmental co-benefits and the issues of permanence, leakage and additionality.