Australia’s largest provider of dedicated carbon sink plantings, CO2 Australia Limited (a wholly owned subsidiary of publicly listed CO2 Group Limited), supports the Federal Government’sannouncement this week to extend the starting date for its Carbon Pollution Reduction Scheme(CPRS).
CO2 Chief Executive Officer, Mr Andrew Grant described the 12-month extension as “sensible”, given the current economic climate, but also sensible for “Australia’s climate credentials globally”.
“What is coming through loud and clear from our client base is that large emitters of greenhouse gasneed certainty around the timing and design of the CPRS for critical business decisions.”
According to Mr Grant, the announcement effectively provides organisations that will have a liabilityunder the CPRS with some ‘breathing space’ to better prepare for its introduction with the knowledge that the scheme has legislative certainty.
Under the government’s modified proposal, it is understood that reforestation projects will still be able to commence generating CPRS permits from eligible forests from July 1, 2010. According to MrGrant, “this means that the delayed introduction will have little impact on reforestation projects. In fact, investors in reforestation projects will be advantaged because they will effectively have an additional 12 month period prior to scheme commencement during which they can be banking permits generated from the forest.”
CO2 also commended the increase in the emission reduction target up to a limit of 25 per cent on 2000 levels by 2020.
“The government has a difficult task in treading the line between environmental leadership and short term economic priorities. We believe this announcement helps secure the transition toward a lowcarbon future.”
Mr Grant urged federal politicians to come together on the carbon reduction issue and called on all parties to progress the proposed legislation.
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