Farming to be excluded in net zero emissions target as Nationals raise pressure
Trade-exposed emissions-intensive industries, including farming, are likely to be carved out of any plan to reach net zero emissions by 2050
Trade-exposed emissions-intensive industries, including the farming sector, are likely to be carved out of any plan to reach net zero emissions by 2050 — in line with New Zealand’s model — with Michael McCormack backing agriculture’s exclusion as a precondition of meeting any target.
The Deputy Prime Minister drew a line in the sand, arguing a carve-out was needed as part of any net zero policy after key members of his partyroom warned they would not support any climate package that failed to include protections for agriculture, mining and manufacturing.
Scott Morrison has not committed Australia to a net zero target, but says his preference is to achieve the goal by 2050 — an objective that risks fuelling unrest within the Nationals and the conservative ranks of the Liberal Party. He has pledged to achieve the objective through deploying new technologies rather than imposing new taxes.
Senior ministers on Sunday privately backed Mr McCormack’s view that agriculture should not be included in any net zero target and support be given to other trade-exposed industries with heavy carbon footprints.
Speaking on Sky News, Mr McCormack said that excluding agriculture from any net zero target — as happens in New Zealand — “could well be one of the options” considered by the government, but warned the debate was a “long way off” given more pressing concerns about COVID-19.
“It will be technology, not taxes that get us there,” Mr McCormack said. “There is no way … that we are going to whack regional Australia, hurt regional Australia in any way shape or form just to get a target for climate in 2050. It’s not going to happen.
“New Zealand, well yes, they’ve said that 2050 is a target, but they’ve also had that caveat with their agriculture. If that’s what it takes, then that’s what it takes.”
Agricultural emissions were excluded from the Labor government’s carbon pollution reduction scheme, which was repealed in 2014 by the Abbott government.
About 25 per cent of Australia’s emissions sources were not covered by the cap-and-trade scheme, including emissions from deforestation, some landfill facilities and facilities that emitted less than 25,000 tonnes of carbon dioxide equivalent a year.
Labor had also given free credits to the most trade-exposed emissions-intensive industries which capture businesses that use a large amount of energy and which would also face a competitive disadvantage from a carbon price.
Sectors that argued they would be disadvantaged included the agriculture, cement, aluminium, coalmining and gas industries.
In the year to June 2020, the agricultural sector in Australia was responsible for 67.1 million tonnes of carbon dioxide equivalent in Australia compared to 69.7 Mt in the year to June 2019 — a change of 3.7 per cent.
According to Australia’s greenhouse gas inventory, the agriculture sector accounted for about 13.1 per cent of the country’s total emissions. The electricity sector made up 33.4 per cent, while transport made up 18.3 per cent. In New Zealand, agriculture is the largest contributor and makes up about 48 per cent of gross emissions.
Mr McCormack also told The Australian that the Prime Minister had consulted with him ahead of his National Press Club Address last Monday in which Mr Morrison said that regional Australians would not “carry the burden” of climate change action.
“Yes, I knew what he was going to say in that regard. I particularly like the way he put it,” Mr McCormack said. “I thought that was an assurance to regional Australians they would not be disproportionately affected.”
In his National Press Club address, Mr Morrison said that he would “not tax our way to net zero emissions”.
“I will not put that cost on Australians and I will particularly not ask regional Australians to carry that burden,” he said. “Getting to net zero, whether here or anywhere else, should be about technology not taxes and high prices.”
The government is in the process of developing a long-term emissions reduction strategy which will be released ahead of the UN climate change conference in Glasgow later this year.
A spokesman for Energy Minister Angus Taylor said the government could “look Australians in the eye and tell them we don’t sacrifice the livelihoods of working Australians for no global emissions benefit”.
“Technology not taxes means developing the practical solutions that will enable emissions to come down without sacrificing jobs or a strong economy,” he said.
Mr McCormack publicly raised the prospect of excluding agriculture from the target after former Nationals leader Barnaby Joyce told The Weekend Australian that members of the partyroom could cross the floor to defend the regions.
“The issue is what policy will be brought into the parliament as part of a 2050 aspiration. We can’t stop the executive government signing, then dining, on any new treaty,” Mr Joyce said. “But what we can do — and you’ll get a lot of support for — as they try to legislate for these new processes you will have a section of the National Party crossing the floor. And when it comes to crossing the floor, the first time is painful, the second time is a breeze.”
Former deputy leader Bridget McKenzie also told The Weekend Australian that she would not be signing up to any climate proposals if “agriculture, mining and manufacturing pay the price for this lower emissions target”.
Seizing on the remarks, Anthony Albanese accused the Nationals on Sunday of holding back climate change action and criticised Mr Morrison for not officially embracing the 2050 target. Speaking in Cairns, the Opposition Leader said Labor would “look at any proposals which are there” for agriculture but accused Mr Morrison of “dragging his heels” on climate change.
“We can’t have a few people on the Liberal National Party backbench holding Australia back,” he said. “Australia is losing economic opportunities. We could be a renewable energy superpower for the world.”
Tony Wood, energy program director at the Grattan Institute, warned it did not make sense to exclude the agriculture sector from any 2050 net zero target because it would mean that “everyone else has got to do more”.
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