Meat & Livestock Australia has developed a fact sheet to explain to livestock producers how carbon trading works, and how they can participate in the Carbon Farming Initiative if they choose.
The levy-funded red meat service organisation says that regardless of how people view the science of climate change, it has influenced government policies which are now having a tangible impact all sectors of the economy, including farm businesses.
On-farm greenhouse gas emissions are exempt from the carbon tax.
The Carbon Farming Initiative, which will be operational from July 2013, is a mechanism designed to allow producers to interact with the carbon market.
Participation in the CFI is voluntary and there are currently no practical and approved methodologies for livestock producers to participate in the CFI without a level of risk.
The CFI will introduce a new currency, Australian Carbon Credit Units which must be created using an approved methodology. Carbon credits can be created through activities that sequester or avoid emissions. Current methodologies for the livestock industry require the ‘permanence’ and ‘additionality’ rules to be met, limiting their application in many instances.
To see the MLA’s fact sheet, click here
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