In The News
The Emission Reduction Fund is an initiative with an objective to reduce emissions in Australia to less than 5% by the year 2020. ERF encourages stakeholders in the agriculture sector to adopt new methodologies that in turn work towards reduced greenhouse consumption in the continent.
Opportunities for the Agriculture Sector
Though the concept is mostly being implemented in the wastage sector, there are numerous opportunities in the agriculture industry as well.
Novel methods: The Government has a positive outlook regarding the ERF initiatives and has initiated novel methodologies to increase carbon levels in soil, decrease livestock emissions and developing opportunities for reforestation.
Land Holding Regulations: Current rules pertaining to land ownership for agriculture are stringent. With the ERF coming to picture, procedures have been made simpler to attract maximum participation.
New Permanence: Earlier project rules state a 100 year permanence of isolated projects stating the minimal time requested for risk reduction. The ERF recommends a 25 year option for such sequestration projects, stating difficulty in the feasibility of running such projects.
The ERF Legislation shows brighter opportunities for the sector to participate in carbon reduction. With its support towards government contracts, ERF provides chances for more certainty regarding extended support for carbon offsets created as a result of agriculture projects that are medium or long term.
The ERF legislation can also enforce a mechanism of ensuring the utilization of carbon offsets by certain entities if the emission level increases a prescribed level.