October climate & carbon update

Highlights for climate and carbon

Australia has set its new carbon emission reduction targets under the Paris Agreement for 2035 with a targeted reduction of between 62 and 70 per cent below 2005 levels with the aim of being Net Zero by 2050. The Agriculture and Land Sector Plan has been released alongside these targets to detail how the Aussie agricultural sector will support this transition to Net Zero.

In the Baseline Scenario modelled by the Treasury, agricultural sector emissions are projected to reduce by 28 per cent and the carbon sink in the land is expected to increase by 126 per cent through to 2050.

The plan identifies 4 areas to guide both effort and investment that will aid in reducing agricultural emissions in-line with this baseline scenario.

• Improved understanding of business and sector emissions
• Supporting innovation to increase the availability of commercially viable abatement options for producers
• Strengthening on-ground action
• Enhancing the role of land in a net zero economy.

The report also highlights 3 key objectives that must be kept at the forefront when developing policy to ensure the goal of reducing GHG emissions does not come at the expense of the productivity of the agricultural sector.

• Action on climate change cannot come at the expense of food security. Therefore, continued efficiency gains and improvements to the emissions intensity of production will be necessary to meet growing demand while contributing to emissions reduction goals.
• We must support diverse landscapes that balance agricultural production, carbon storage and nature repair with growing the carbon sequestration of land particularly critical.
• Decarbonisation of agriculture must deliver real benefits for regional communities, producers and land managers, to enable a fair and orderly transition for regional, rural and remote communities.

Source: Treasury modelling

Sean Hickey

Senior Agricultural Analyst

Sean is our Insights specialist for the horticulture sector, utilising both his time spent within the industry alongside a Bachelor of Commerce to produce informed market analysis and commentary.