Direct Action Climate Policy – And the winners are………
October 29, 2014 Louisa Kiely
Hello again, and long time no speak!
As you know- things have rather been ‘on hold’ as industry holds its breath in a complete policy vacuum. Yet, we know that the Department is going full speed ahead on all the New Methodologies which will operate under the Emissions Reduction Fund.
Well, now we have some certainty. AS just announced in a media conference, there is a DEAL been done. All we now need is to get it through the Senate – should be a formality.
Already, under the Price on Carbon, $33 million has been traded – JUST in the Central West of NSW – but in which methodologies? Is there more ‘low hanging fruit’ around ?
So, to re-cap, Direct Action is the NEW climate change policy – now set to replace the ‘disappeared’ ‘tax’. The Government is committed to a 5% reduction in emissions by 2020. This represents about 450 million tonnes of carbon ‘credits’ .
DA has $2.55 billion committed over 4 years and will work via a series of ‘reverse auctions’. Its enabling architecture is the expanded Carbon Farming Initiative, that we’ve all grown to know and love (maybe!)
These auctions will be where we can sell Carbon Credits from the First Million Tonnes to the Government – but its a competitive process with lowest cost the ONLY consideration. However, the good news is that some methodologies are now easier, and have better calculators (read in the Tree space for the Land sector)
ALSO, The ‘expanded’ CFI now allows OTHER sectors to earn carbon credits, and councils, mines, transport companies will all be able to take part. AND the Government wants to encourage Aggregations – groups of farmers or others who can ‘pool’ large amounts of carbon.
Because once Direct Action is through, they intend to hold the first reverse auction bid ASAP! You need to understand how it will work.
To assist our Stakeholders to be AT THE FRONT of the queue, we will be holding the first of the webinars to explain WHAT and HOW to take part.