Farmers urged to start carbon trading within two years

Friday, April 11, 2008

An economist says farmers can expect to be part of an emissions trading scheme by 2010.

David Pearce, from the Centre for International Economics, says farmers should be at the table now to discuss how carbon trading will affect them.

Agriculture produces 16 per cent of Australia's emissions, and is the second largest greenhouse gas emitter after power generation.

Mr Pearce says there will be a limit on greenhouse gas permits, to make them valuable to trade.

"It's like a game of musical chairs," he says.

"In the sense that the entire objective of the policy to reduce emissions is to have fewer and fewer permits every year so that the cap, that is the number of permits, that is our emissions is declining over time."

Sourced from ABC.