Although the politics of climate change in Australia are lively, both the current government and opposition broadly support carbon farming as to achieve national emissions reduction targets.
Australia has a significant task to reduce carbon emissions from levels that are very high by international standards. This transition in the economy presents an enormous opportunity for the land sector from this transformation and for landholders to benefit directly.
In relation to the current carbon market in Australia, the current system is that of the Coalition Direct Action policy. This is simply the Federal government using taxpayer money to purchase verified carbon offsets from Australian carbon offset projects. Under the previous carbon tax system liable entities purchased Australian Carbon Credit Units (ACCUs). Today the Federal government acts as the buyer of the credits.
Almost all of Australia’s trading partners are engaged in their domestic carbon market activities including the European Union, China, Japan and the United States. The overall trend being towards a price on carbon but with diverse ways in which this is implemented at country level.
1 ACCU is equal to 1 tonne of C02
The market is high regulated and participants are subject to extensive regulation by ASIC and the Clean Energy Regulator. More information can be found at the website of the Clean Energy Regulator.