It will cost too much to plant large carbon forests, says the CSIRO which has been studying areas of opportunity for carbon forestry, especially in the Murray-Darling Basin. It found the shortage of tree seed and labour would limit plantings. "What you find is if there's a high establishment cost, say $3000 per hectare, and you start to look at commercial interest rates, it's going to take a high carbon price, say over $40 a tonne, to see any real area of opportunity over which carbon forestry will be profitable," says Dr Michael Battaglia.
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