In reply to Hon. M.J. ELLIOTT (5 August) and answered by letter on 7 October.
  The Hon. DIANA LAIDLAW: The Minister for Government Enter-prises has provided the following information:
 The Minister for Government Enterprises has advised that the Government is aware of the possible opportunities, both economic and environmental, that greenhouse gas emission trading can bring to this State.
 While there has been significant interest relating to carbon sinks in forests and their possible contribution to Australia's emission reduction efforts under the Kyoto Protocol, the potential for these sinks to be used in any domestic or international emis-sion trading regime requires the resolution of several key issues.
 Since emissions trading was included in the Kyoto Proto-col as one of the international mechanisms by which emis-sions can be limited, forests have been recognised as a likely major source of carbon credits. As forests provide measurable carbon sinks, trade-able credits could be issued according to the amount of absorption and then sold to emission sources to offset their emissions. However, there is a significant amount of work that needs to be done to determine how to measure and account for carbon absorbed and stored in forests and harvested products.
 As yet, there is also no agreed legal framework as to how carbon credits might be assigned, either domestically or interna-tionally. To achieve this, further international nego-tiations will be required and it is, therefore, unlikely that such a framework will be agreed upon for some time.
 The current initiatives being highlighted both here and over-seas seem to be speculative at this stage, and much will depend on the emissions trading framework that is eventually adopted.
 South Australia is already working with the Commonwealth on greenhouse issues to ensure that the potential economic and environmental benefits arising out of the Kyoto Protocol are realised. Fora for these discus-sions include the Ministerial Council on Forestry, Fisher-ies and Aquaculture and the Standing Committee on Forestry.
 The Standing Committee on Forestry is proposing to undertake work on the implementa-tion of forestry-related activities under the National Greenhouse Strategy, in conjunction with the Australian Greenhouse Office, the lead Commonwealth agency on green-house matters.
 The Australian Greenhouse Office is currently developing methodologies and procedures to measure and verify the carbon sequestrated in forests established since 1990, as part of the work arising out of the Kyoto Protocol. This work will also include estimates of carbon stored in har-vested products and processes for regulating the potential trade in carbon.
 In concluding, this issue is complex and will require extensive negotiations before appropriate and legally binding arrangements are put into place. Therefore, while there are potential significant opportunities for carbon credits to be obtained from forestry-related activities, until the details and legal framework are established, such benefits are speculative.
 
 

 
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