Forest industry left out of Clean Energy FutureFriday 11 Nov 2011 As the Carbon Tax is passed through Parliament, the Australian Forest Products Association (AFPA) says the government’s Clean Energy Future could hurt domestic forest product processors and will do little to encourage participation by commercial forest growers producing both wood and carbon positive outcomes."Despite the industry being in the business of creating low emissions intensive materials and sustainably managing forests, the government has ignored the industry’s feedback in developing its climate policies," said AFPA Chief Executive Officer, David Pollard. "First, many AFPA members operate in a global marketplace and will face steep competition from producers in countries with no carbon tax. The rate of assistance for these trade-exposed manufacturers in the form of permit allocations will decay over time at an arbitrary rate of 1.3 per cent per annum. AFPA urged the government to link this assistance to the actions of competitor countries as they set carbon policies but this has been largely ignored,” said Dr Pollard. Manufacturers of solid and reconstituted wood products will receive no assistance at all, and will suffer a serious erosion of competitiveness from day one." "Secondly, it will be very difficult for any commercial plantation forestry operation to be recognised in the Carbon Farming Initiative (CFI) because the constraints placed on for-harvest plantation projects are far stricter than on any other activity." "Thirdly, the use of native forest wood waste to produce renewable energy will be banned with amendments to the Renewable Energy Target (RET) Scheme. This is extremely disappointing considering a number of projects in regional Australia are now in jeopardy and waste products from sustainably managed forest operations and processing unable to be utilised." "The only bright spark under the package is the provision of greater certainty and market access for ‘not for harvest’ reforestation carbon offset projects, which are likely to become a more important component of a diversified forestry industry into the future." "On the whole however, despite what most Australians would expect, the carbon positive forest industry has little to smile about with this week’s passing of the carbon tax legislation." Source: AFPA |
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