Senate Rural and Regional Affairs and Transport Legislation Committee, , 6:16:57 to 6:20:57
Concerns regarding the potential for Australian Carbon Credit Units (ACCUs) to be used by international investors to meet foreign targets, potentially impacting local food production.
Topics: Carbon farming, Emissions reduction, Climate change
Speakers: Hon Matthew Canavan, Heather McGilvray, Matt Lowe, Unknown Speaker, Senator Glenn Sterle, Nick Blong
>> Okay. All right. Okay. We wait with baited breath. Um just going back to the Rushies Lagoon. I'll be very quick and I might have missed it. So if it was asked or answered, let me know. I think there was a discussion uh as a result of Senator Cobic's questions around uh the creation of ACUs. uh uh my uh particular interest is do those do any ACUs created from Rusky's lagoon or the the changes in agricultural practices at Lishes Lagoon will those ACUs only be able to be used in Australia to offset uh the carbon emissions of Australian uh
sorry. Name plate. Uh,
>> Well, you're happy to answer this one,
>> that's going to really haunt me, isn't
>> I can see you blushing from here.
>> Yeah. Sorry. Uh, uh, Senator, I'm I I'm not sure about the extent to which any overseas country might enable the use of a of an Australian ACUE. Certainly use uh of ACUS ACUs are used by safeguard entities here in Australia. I couldn't really speak with utter confidence about >> what overseas countries say in relation to our ACU.
>> Yeah, but there's nothing stopping them potentially accrediting an ACU and saying that qualifies for a a UK manufacturer to offset its carbon emissions. There's nothing in our laws
that stop that. No, but I guess the um the effect of the carbon storage is recognized in Australia's national accounts. So like the the effect of storing carbon on Australian land is recognized here in Australia.
>> Okay. So how does that stop double counting that if another country uses that to offset its because it has been there's been a lot of discussion our policy I know about the potential international trading of carbon credits and I know we don't allow that for say things like the safeguard mechanism although our businesses sometimes do this for their own targets uh so what stops double counting then under the
>> I think that's a question you might have to direct to the Q ones who run that.
>> My concern here given the overseas investment involving this company uh is what protections do we have in place to ensure that our country does not become a dumping ground for uh carbon abatement activities which sees agricultural production uh reduced food production reduced here in Australia to meet the carbon emission goals of another nation.
>> we'll take on notice Senator. >> Yeah. those arrangements.
>> I mean, I'm very concerned just meeting our own targets. Abears we've been through in this committee shows that we need 18 million hectares uh converted uh from agricultural production to what's called forest but it's pests and weeds. It becomes uh to meet net zero. That's 18 million additional hectares. Uh now if other countries start seeking to get to their net zero goals using our very large land mass uh we could face a real real big problem. But um I'm a bit concerned there's not even seemingly thinking about that happening.
>> I think Senator there's a difference between countries carbon accounting versus private business activity. So
>> but the same result for us same result for us if if an overseas company comes here and shuts down farming and converts it to carbon credit production. We lose that agricultural output. Goes back to the food security issues we spoke about before. Uh there's doesn't seem to be not any protections against that happening. not a lot of thought going into making sure it's not a problem that
>> I think we're happy to take it on notice and um uh th those questions would be best directed to the department of climate change um energy environment.