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Tuesday, 3 February 2009
Page: 165


Senator Milne asked the Minister for Climate Change and Water, upon notice, on 7 November 2008:

(1)   Does the Government intend for a market-based mechanism to involve private polluters being able to seek pollution credits from developing countries or land holders in developing countries.

(2)   Does the Government intend to limit the proportion of Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) incentive credits entering the Australian Carbon Pollution Reduction Scheme; if so, how.

(3)   What proportion of Australia’s greenhouse emissions does the Government intend to allow to be offset under a market-based REDD incentive.

(4)   On what criteria was the Government’s decision to ‘argue’ for a market-based mechanism based, and was the equitable distribution of incentives one of the criteria.

(5)   How does the Government intend to ensure that human rights are maintained under a fully fungible pure market-based REDD incentive mechanism.

(6)   How does the Government intend to avoid devaluing carbon prices from a potential flood of cheap REDD incentive credits into carbon markets.

(7)   Has the Government assessed alternatives to market-based REDD incentives; if so, what other models and/or mechanisms were assessed and what was the outcome and findings of such assessment.

(8)   Has the Government considered arguing for the auctioning of Kyoto assigned amount units contributing to a United Nations Framework Convention on Climate Change administered fund as an alternative to a fully fungible pure market-based REDD incentive mechanism; if so, on what basis was such a mechanism found to be inferior to a market-based mechanism.


Senator Wong (Minister for Climate Change and Water) —The answer to the honourable senator’s question is as follows:

(1)   The Government has announced it will release a White Paper on the Carbon Pollution Reduction Scheme on 15 December 2008.

(2)   The Government has announced it will release a White Paper on the Carbon Pollution Reduction Scheme on 15 December 2008.

(3)   The Government has announced it will release a White Paper on the Carbon Pollution Reduction Scheme on 15 December 2008.

(4)   Australia believes a market based mechanism is the best way to provide incentives for reducing emissions from deforestation and forest degradation in developing countries (REDD), and to leverage private capital to mobilise investment on the scale that will be needed to effectively and efficiently deal with REDD. Currently the UNFCCC supports the application of market based instruments to mitigate greenhouse gas emissions through its Kyoto Protocol.

(5)   The details of a REDD mechanism will be negotiated in 2009 in the lead up to the Copenhagen Climate Change Conference. Australia will actively participate in these negotiations.

(6)   The Government has announced it will release a White Paper on the Carbon Pollution Reduction Scheme on 15 December 2008.

(7)   The details of a REDD mechanism will be negotiated in 2009 in the lead up to the Copenhagen Climate Change Conference. Australia will actively participate in these negotiations and assess all options.

(8)   The details of a REDD mechanism, including whether it is market based, will be negotiated in 2009 in the lead up to the Copenhagen Climate Change Conference. Australia will actively participate in these negotiations.”