Farm Emissions Don’t Count, But Credits Do

The Federal Government has agreed to exempt farmers from an emissions cap in its carbon trading scheme, in a backflip aimed at winning the support of the Opposition, but farmers will be allowed to generate carbon credits.

It has agreed to exclude agriculture from the costs of the Carbon Pollution Reduction Scheme (CPRS) to try to get the legislation passed in the next fortnight.

A spokeswoman for Climate Change Minister Penny Wong says farmers will be allowed to generate carbon credits.

Negotiations are continuing between the Government and Coalition for amendments to the legislation as Parliament resumes on Monday and the Government pushes for a vote in late November.

Both sides say the talks are progressing but Senator Wong says an agreement will be “difficult”.

The Opposition are pushing for several changes but are likely to have some knocked back due to budget restraints.

“What I’ve made clear is we’re not able to accept the entirety of what they’ve put forward – it would be fiscally unsustainable,” Senator Wong said.

The Government had wanted to include farmers in the scheme from 2015.

But the National Farmers Federation lobbied for the amendments, putting it in conflict with the National Party and climate change sceptics within the Liberal Party.

The Opposition also wants more free permits for heavy polluters and more compensation for electricity generators.

Opposition Leader Malcolm Turnbull and emissions trading spokesman Ian Macfarlane will also struggle to get any agreed changes through the party room, which has to approve them before the Coalition decides on its final position.

Mr Turnbull has said that if the majority of amendments are accepted he would recommend the scheme be passed, but others such as Senator Nick Minchin say an agreement does not guarantee support for the scheme.

Mr Turnbull has staked his leadership on the issue after declaring he could not lead a party that would not act on climate change.

Source: www.abc.net.au