---
Sent From Bloomberg Mobile MSG
+------------------------------------------------------------------------------+
Carbon-Storing Forests May Compete With Farming in Australia
2010-10-10 13:01:00.0 GMT
By Ben Sharples
Oct. 11 (Bloomberg) -- Carbon-storing forests may compete
with agriculture for land in Australia, the world's fourth-
largest exporter of wheat, if the nation introduces emissions
trading, according to a research report.
"Large areas of land could become more profitable" as
sites for plantations to absorb greenhouse gas emissions,
depending on the price at which carbon trades, the Australian
Farm Institute said today. A cap-and-trade system "would
potentially generate new competition for agricultural land."
Australia in April shelved climate change laws until after
2012 amid lawmaker opposition and a lack of action by other
countries. Prime Minister Julia Gillard has established a multi
party committee to study options for introducing a price on
carbon in a country where coal accounts for more than 80 percent
of power production. The group met for the first time last week.
Carbon Conscious Ltd., an Australian company that plants
gum-trees to absorb greenhouse gas emissions, has been hired by
BP Plc, Origin Energy Ltd. and Wesfarmers Insurance to establish
plantations on less-arable farmland. Melbourne-based competitor
CO2 Group Ltd. has similar accords with Inpex Corp. and Woodside
Petroleum Ltd.
The mallee eucalypt trees that Carbon Conscious plants,
absorb and store emissions in their leaves, twigs and roots, and
generate permits tradable under the pollution reduction laws
Australia has now delayed. About five trees are needed to absorb
1 metric ton of carbon, according to the company.
The Australian Farm Institute commissioned GHD Hassall to
compile the report, titled 'The Implications of Greenhouse
Mitigation Policies on the Demand for Agricultural Land.'
For Related News and Information:
Top environment stories: GREEN <GO>
--Editors: John Viljoen, Ryan Woo.
To contact the reporter on this story:
Ben Sharples in Melbourne at +61-3-9228-8732 or
bsharples@bloomberg.net
To contact the editor responsible for this story:
Clyde Russell in Singapore at +65-6311-2423 or
crussell7@bloomberg.net
