The United States Congress continues to grapple with the challenges of passing major climate change legislation that will reduce greenhouse gas (GHG) emissions while also creating a cap-and-trade carbon offset market where carbon credits for reducing emissions can be bought and sold. The pace in Congress has been slow as the recession and health care have taken up the majority of the legislative calendar. Now some think climate change legislation is likely dead in America until the new legislative session starts in 2010. However, after speaking with Senate sources on Capitol Hill, it is becoming more and more likely that the healthcare legislation will also push into the 2010, meaning climate change legislation will still be waiting its turn for action as the new year starts.Meanwhile, the Australian government is moving along with its own climate change legislation, and while the countries have many differences, how Australia got climate legislation moving could serve as a model for US lawmakers and advocates. One of the major issues with climate change both here and in Australia is what to do with agriculture?
Yvonne Chan is reporting for Business Green Online today that the federal government in Australia has decided to “exclude” agriculture from the emissions trading plan the country developed. The government did this, according to Chan, in order to get climate change legislation passed “without recourse to an early election.”
Chan reports that this decision is a big win for Australia’s farming industry. Much like the agriculture industry and lobby in the United States, the agriculture industry and farming lobby in Australia had concerns that the “cost of complying with the emission cap-and-trade scheme would cripple the agricultural sector.
Previously, the ruling Labor party in Australia had indicated that the agriculture sector would be included in the plan by 2015. In Australia, agriculture accounts for roughly 16 percent of the nation’s GHG emissions. “But in a major about-face, the government has said it would be willing to exclude farming from the scheme and is also considering giving farmers the opportunity to sell carbon offsets on the open market, through activities such as tree planting.”
In the US there is no indication as of yet that agriculture would be “excluded” from reducing GHG emissions, but there is the expectation that the agriculture community would be able to participate in the cap-and-trade market by planting trees, practicing no-till agriculture, or converting crop land, among other provisions. Of course, until a final bill comes out of a congressional conference committee between the House and Senate, there is no way to be sure how American agriculture will be treated in climate change legislation. Thus, lobbyist and industry leaders on both sides of the issue are hard at work getting their vision for agriculture’s role into the final bill.
A vote on the scheme is likely to happen in the coming weeks as all sides see how the changes will affect their interests. Prime Minister Kevin Rudd, like President Barack Obama, would like to have the bill completed prior to the December United Nations (UN) climate change talks in Copenhagen, Denmark.
Mark Colvin of ABC News online reports that farmers are, “celebrating the Government’s decision not to include agriculture in the Emissions Trading scheme.” The farmers in Australia argue this will bring certainty to agriculture. Colvin does report that farmers do want to be part “of the climate change solution,” and they will do so by participating in carbon offsets and initiatives.
Barbara Miller also reports for ABC that the National Farmers Federation is “encouraged” by this decision. David Crombie, the Federation president, offered this comment, “Vegetation management has changed. We're doing a lot of zero till agriculture in our farming systems. We're planting deep rooted perennial pastures. There are a whole lot of things happening on farm which is actually improving… improving the carbon storage and carbon sequestration. So, farmers are in there, they're doing things for the carbon cycle. What we need now is to get the rules right if we're going to participate on a continuous basis.”
Meanwhile, Bruce Hextall is reporting from Sydney, Australia for Reuters that the carbon credit system being discussed my actually boost agriculture output. “Industry officials said on Monday the decision to exclude agricultural emissions from the scheme and to possibly allow farmers to earn carbon credits through better land-management practices would enhance production of crops such as wheat.” Hextall quotes David Crombie as stating that farmers are already good carbon managers as it is in the best interests.
“Australia's emissions-trading scheme has been delayed in the Senate where the government lacks a majority. In order to secure the support of opposition lawmakers, it has been under pressure to give more concessions to both farmers and heavy industry.”
Similarly, in the US Senate law makers from both agricultural and industrial states, as well as some coal states, have expressed the most concern about climate change legislation and what it might mean to the economies of their states. To gain some opposition support, Australian Climate Change Minister Penny Wong, “said the farm sector would be exempt from paying for its emissions.”
Still, despite not having to pay for their own emissions, farmers may still be allowed to participate in the cap-and-trade program. Rob Fowler, who is an emissions trading specialist for Booz and Co. believes if farmers are awarded carbon credits for “eco-friendly farming” it would greatly improve land management. ‘“It is a big step in the design of the scheme and will make a big difference in how people manage the land,’ said Fowler.”
In the coming weeks the picture will become clearer whether or not exempting agriculture from the emission requirements is enough to clear passage of a climate change bill in Australia. Whether or not US lawmakers or industry advocates are paying attention to other countries’ approach to climate change, or if US lawmakers are willing to exempt certain industries from emissions standards in order to pass a bill, remains to be seen.
To read the Business Green report click here.
To read the ABC News story click here.
To read the Reuters story click here.
Posted 11/16/09
