The Hon. M.J. ELLIOTT: I seek leave to make a brief explanation
before asking the Minister for Transport and Urban Planning, representing
the Minister for Environment and Heritage, a question relating to carbon
credits. I ask that the question also be relayed to the Minister for Primary
Industries, Natural Resources and Regional Development.
Leave granted.
The Hon. M.J. ELLIOTT: Last month (as I recall about 8
July), during Matters of Importance, I discussed the matter of trade
in carbon credits and the potential for enhancing South Australia's environment
through that trade. I have received a positive response from some quarters
to my call for greater involvement by our State in this emerging area.
Since my first speech on the issue I have learnt about several programs
already under way in Australia to tackle the Greenhouse problem through
this system of investing in carbon credits. This is done through the payment
of compen-sation by carbon polluting industries for the establishment of
forests to act as carbon sinks for carbon dioxide in order to counter global
warming.
The conservation and land management opportunities also provided
by these schemes have been recognised as huge for South Australia. Already
the New South Wales Government has put together a $30 million prospectus
for investment in carbon credits and has already signed up carbon trading
deals with two companies. The head of Western Australia's Department of
Conservation and Land Management, Dr Syd Shea, gave a paper to a conference
in May this year which outlined his State's progress in this field. If
this program is fulfilled, it will result in the establishment of 800 000
hectares of trees on farmland by the year 2020. Depending on the trees
and their capacity to store carbon, one hectare of forest could be worth
between $100 and $300 a year in carbon credits.
As Western Australia has more than 70 per cent of Australia's
reported dryland salinity, the forestry program will aim to tackle this
issue, as regeneration with trees and shrubs, which are deep rooted, is
the only practical long-term solution to controlling dryland salinity.
It is worth noting that by 1996 South Australia had already lost 402 000
hectares to salinity. That is an increase of 55 000 hectares from 1982,
and it is believed that we will lose at least 600 000 hectares before salinisation
levels off.
To obtain a better idea of how much this is potentially worth,
the country of Costa Rica will receive $300 million in carbon credits over
a 15 year period for the preservation of forests. That is `preservation'
as distinct from `replanting', so we are talking big dollars. Carbon credits
are seen by many as a useful short-termóI stress `short term'ómethod of
tackling greenhouse gases whilst more work is done on removing our reliance
on fossil fuels.
An honourable member interjecting:
The Hon. M.J. ELLIOTT: They're already moving, yes. Unfortunately,
our Ministers haven't heard about it. I have raised these matters with
the Minister for Primary Industries, Natural Resources and Regional Development
(Hon. Rob Kerin) and the Minister for Environment and Heritage (Hon. Dorothy
Kotz), but I ask this question because I would like a response from the
Government placed on the public record in terms of what the Government
is nowó
An honourable member interjecting:
The Hon. M.J. ELLIOTT: Yes, the Treasurer might like the money
too if I find a way of getting it.
The Hon. T.G. Cameron: How many acres of trees do we have to
plant so that we do not have to sell ETSA?
The Hon. M.J. ELLIOTT: Actually, it would not be a lot.
The PRESIDENT: Order! Will the honourable member get on with
his explanation?
The Hon. M.J. ELLIOTT: Yes, Mr President. If you will protect
me from these interjections, I am sure that I can get on with it. I ask
the Minister to place on the record the Government's plans and whether
or not it will seek to address this issue in the short term. It is likely
that there will be a window of opportunity of, at the most, 10 years, and
the countries that get in the earliest will clearly get the most benefit.
The Hon. DIANA LAIDLAW: I will refer the honourable member's
question to the Minister and bring back a reply.
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