The Federal Government's proposed carbon pollution reduction scheme may have a negative impact on certain trades and industries, notably forestry and timber.
Queensland's timber industry says the Federal Government's proposed carbon emissions trading scheme could change the face of their business. Members of the forestry industry are meeting in Brisbane today to discuss the potential benefits and pitfalls of the plan, which the Government wants to put into action in 2010.
CEO of Timber Queensland, Rod McInnes, says they have to consider the consequences of participating in the scheme.
"There is a whole new opportunity to get more trees in the ground, more forest cover and more carbon storage and in turn provide more timber products," he said. "The downside is that if the market for carbon is unconstrained and goes crazy we could end up with it being more attractive to leave a tree unharvested. That would mean the available resource to convert to timber may diminish."
Mr McInnes says it could either deliver environmental and economic benefits in the industry or reduce timber production.
"It's a very interesting balancing act ... and I'm not expecting that the Government's going to call what the carbon price will be up-front, but it's an issue where we need to understand what those variables are going to be so we can make the right policy decisions," he said.
What is the Carbon Pollution Reduction Scheme?
It's not old news that climate change is exerting disastrous impacts on our world, and Australia has realised that, with one of the driest and hottest continents on earth, our economy and environment will be one of the hardest and fastest hit by climate change if we don't act now. Carbon pollution is a major cause of climate change, resulting in higher temperatures, more droughts, rising sea levels and more extreme weather.
For example, the 12 hottest years in history have all been in the last 13 years, and it is predicted that temperatures will rise between 1 and 6.4 degrees over the next century.
Without action, scientists say that there will be up to 20% more drought months over the majority of Australia by 2030, more intense and damaging cyclones, and rising sea levels with serious impacts on Australian coastal properties, low-lying Asian mega cities, and the Pacific Islands.
As part of an effective framework for addressing the climate change challenge, the Australian Government is establishing a Carbon Pollution Reduction Scheme. The Scheme has two distinct elements:
- the cap on carbon pollution - which achieves the environmental outcome of reducing carbon pollution
- the ability to trade - which ensures that carbon pollution is reduced at the lowest possible cost.
The scheme seems to be the most economically responsible approach to reducing the country's carbon pollution, whilst also building long-term economic prosperity in a lower carbon economy.
The Government's climate change strategy seeks to:
- reduce Australia's greenhouse gas emissions
- adapt to climate change that we cannot avoid
- help shape a global solution
The Carbon Pollution Reduction Scheme will place a limit, or cap, on the amount of carbon matter that industry can emit.
It will require certain businesses and industry to buy a 'pollution permit' for each tonne of carbon they contribute to the atmosphere, giving them a strong incentive to reduce pollution.
The Government will use every cent raised by the sale of these pollution permits to help Australian households and businesses adjust to the scheme and invest in clean energy options.
