Australian Government passes landmark CO2 offset scheme amidst protests

In an historic move, the Australian parliament passed the world's first national scheme to regulate the creation and trade of carbon credits from farming and forestry, further accelerating the government’s current plans to place a price on carbon emissions from mid-2012. The new legislation is said to be a precursor to the carbon price laws to be presented before parliament by the end of 2011.

The law, known as the Carbon Farming Initiative (CFI), will agricultural businesses and investors to generate tradable carbon offsets from farmland and forestry projects. Currently, agricultural land use including is accountable for over 20 per cent of Australian carbon emissions.

Projects that will benefit from the imposition of the CFI will include the creation of more tree farms, which soak up carbon dioxide as the trees develop, and better fire management of northern grasslands.

Speaking to Reuters, Greens Deputy Leader, Christine Milne said: "Green carbon is one of the four pillars of the climate package, alongside putting a price on pollution and investing in renewable energy and energy efficiency…the passing of this bill augurs well for passing of the whole package."

The legislation was reported to have passed with minor amendments by the Australian Senate and is voraciously backed by the government, with the House of Representatives to carry out due diligence prior to complete sign-off.

The passing of the bills came as truckers and members of the transportation industry enclosed on Australia's parliament this morning (22 August 2011)  campaigning against the proposed carbon tax law, calling for the bills to be withdrawn and new elections to be held.

The opposing Australian Conservative Party has expressed sympathy to the transportation industry, reported to be the hardest hit by capping emissions, by strongly opposing the implementation of prices on carbon emissions - promising to shelf the scheme if the party wins the next election in 2013.

Australia is responsible for just under 2 per cent of global greenhouse gas emissions and is currently highest per-capita emitter in the developed world due to coal usage generating the majority of the country's electricity.

The government has committed to cut total carbon emissions levels by a minimum of five per cent of emissions totalled in 2000 by 2020.

It has been reported the Australian Conservative Party will have to wait until 2016 before enough seats could be won in the House of Senate in order to repeal the carbon-trade laws, and its direct action plan for tackling emissions could be delayed until 2018.

Article by Diva Rodriguez | Climate Action