Citola Blog
Australia Putting a Price on Carbon
The Australian government is putting a price on carbon pollution. They are doing this first through the Carbon Farming Initiative (CFI) legislation aiming to encourage positive land-use change and land-sector abatement and then through subsequent carbon price legislation that should enter parliament later this year.
I am currently in Australia reviewing Citola projects and operations in preparation for the Australian Carbon Farming Initiative (and subsequent carbon price legislation). What I can report is the level of public awareness and media coverage surrounding the carbon legislation is huge. Every media outlet from newspaper, radio, TV and online is covering the issue and business groups, economists, celebrities, environmentalists, religous leaders, politicians (of course), corporates and individuals are expressing their views largely in favour of a carbon price.
It is telling that even large corporate businesses who have a significant carbon exposure (such as the resource, mining and energy sectors) are seeking action so they have clarity for investment decisions and forward planning. Their logic is a carbon price is inevitable so legislative certainty will help their business over the longer-term.
As we indicated as part of the Carbon Farming Initiative stakeholder consultation: “The realities of the paradigm shift required as the Australian economy transforms to a 'renewable' economy is clear and broad participation needs to be driven by compliance and voluntary demand. I.E. CFI initiatives to drive adoption… must be driven by large and liquid environmental markets.” This will transpire with a carbon price where professor Ross Garnaut, the Australian governments top climate adviser, has estimated that the carbon tax would raise about AU $11.5 billion in its first year, assuming a carbon price initially set at $26 per tonne.
Citola provides client access to a long-term fixed price provision of carbon offsets eligible in the Carbon Farming Initiative, National Carbon Offset Standard or subsequent legislation. Citola manages the entire carbon offset origination, management and delivery process and works with clients to understand their specific requirements, timelines and governance objectives in-order to provide carbon products with an appropriate fee/investment structure.
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