Agriculture in Australia's low carbon future

A decision on the coverage of agriculture within the Australian Governments Carbon Pollution Reduction Scheme, or CPRS, is to be made in 2013. To help inform this decision, Industry and Investment NSW and the Victorian Department of Primary Industries commissioned a major independent study into alternatives to the CPRS for agriculture.

The study was also supported by the NSW Agriculture Ministerial Advisory Council.

The study was conducted by ACIL Tasman, with the following Terms of Reference:

1. Based on economic policy principles, identify the range of policy and program alternatives to the CPRS that would enable agriculture to contribute to emissions reduction. In doing so, provide a summary of policies and programs abroad. The broad categories within which alternative policies and programs would be identified include:

  • Information, awareness and research and development based policies;
  • market based instruments (e.g taxes and subsidies); and
  • regulatory approaches.

In undertaking this task the Consultants shall also indicate what combinations of these alternative policies and programs might be appropriate in contributing to reduced emissions.

2. Provide advice on an appropriate analytical framework to qualitatively and quantitatively assess the economy wide benefits and costs of these alternative policies.

3. Using this analytical framework, provide a preliminary qualitative assessment of alternative policies and programs to short-list those that could warrant further quantitative benefit/cost analysis. In doing so, take into account the flow on costs to agriculture from other covered sectors and the likely Kyoto compliance of identified policy and program alternatives. Further, comment on the implications for policy settings of developments over the medium-longer term in natural resource availability and access, along with other likely climate change related effects.

4. In addition to the core task of assessing these policies and programs as alternatives to a CPRS, the Consultants shall comment on their merits as complements to a CPRS.

The final report on the study was released by the Minister for Primary Industries on 10 September 2009 and can be downloaded below. A summary of the Key Propositions in the report is also available for download.