Thursday, July 07, 2011

What the Senators told the Minister: About Permanence 1

The Senate is debating the Carbon Farming Initiative legislation. Three senators quoted our evidence before the Senate Inquiry during the debate so far, so the voices of carbon farmers was heard:

Senator Richard Colbeck (Liberal, Tasmania)

5 July 2011

I want to move on to the issue of permanence. It is a

complex issue and one that needs modification as part

of this legislative process. It is interesting that some

farmers who came in to talk to us, who are all about

storing carbon in their landscape, brought in to us

presentations demonstrating how they were changing

their farming methodologies to store carbon in their

landscape. They talked about the improvements in

productivity. They discussed with us the carrying

capacity of their land as a result of their different

management practices. And yet Mr Kiely, who came

before the committee to give us evidence, says that

permanence is 'the deal killer'. He said:

No farmer would be silly enough to agree to 100 years for

soil carbon or 100 years for anything. A finance lender

would want to know seriously the impact on the value of the

property of agreeing to such a thing. We did some research

into the 100 years thing and discovered it was a policy

decision, not a scientific measure …

These are people who are committed to carbon storage,

who are practising the sorts of things the government

wants to encourage, and they are saying that the

government processes are a 'deal killer'. And these are

the sorts of people who the government should

legitimately be listening to as part of this process. It is

only common sense that practitioners, who have spent

time and effort in trying to develop their farms and

who actually practice these things, and have some

expertise, should be listened to by the government.

Senator Nick Xenaphon, Independent, South Australia

6 July, 2011

'Permanence' is defined in the act as '100 years'. On the

face of it, that gives a great deal of confidence. But it is

not realistic in the context of farming practices and it is

not realistic in getting a good outcome.

Let me quote from page 35 of the Senate committee

report. The Chairman of the Carbon Farming and

Trading Association, Michael Kiely, said:

No farmer would be silly enough to agree to 100 years for

soil carbon or 100 years for anything. A finance lender

would want to know seriously the impact on the value of the

property of agreeing to such a thing. We did some research

into the 100 years thing and discovered it was a policy

decision, not a scientific measure ...

That is a real concern. We need to listen to key

stakeholders such as the CFTA. It would be foolish not

to listen to those who have that firsthand practical

knowledge. This was a recommendation about the

issue of permanence in the inquiry into these bills. It is

important that the DOIC continue to update, amend

and improve the scheme into the future.

Senator Simon Birmingham, Liberal, South Australia

The CFTA appeared before the inquiry and

described the provision as the 'deal killer'. I will read

an extract of the evidence that is highlighted in the

inquiry. Mr Michael Kiely, Chairman of the CFTA,

stated:

No farmer would be silly enough to agree to 100 years for

soil carbon or 100 years for anything. A finance lender

would want to know seriously the impact on the value of the

property of agreeing to such a thing. We did some research

into the 100 years thing and discovered it was a policy

decision, not a scientific measure ...We believe that 100

years is a perverse outcome. The result is said to be

necessary so buyers can be confident they are getting

value—that is, genuine abatement—so they get nothing.

There is nothing available for them. We have found

examples where the IPCC and the Verified Carbon Standard

have allowed other periods of time recently—20, 25, 30-odd

years. We believe we could work within that sort of time

frame.


Opportunities in the Carbon Farming Initiative will be revealed at the Carbon Farming Conference & Expo, 28-29 September, 2011

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