Carbon price mechanism and the Land Sector Package

The application period for the Filling the Research Gap program round one is now closed.
Future funding rounds will be announced at a later date.
To view the guidelines, or to find out more, visit the Filling the Research Gap webpage,
email FTRG or call 1800 108 760.

The Clean Energy Future website has been developed to communicate the Australian Government’s plan for creating a prosperous and sustainable Australia. The website includes information on the carbon price, renewable energy, energy efficiency and land use, and how these four elements will work together to ensure a Clean Energy Future for Australia.

The website is the Australian Government’s official website on a Clean Energy Future and was launched by Prime Minister Julia Gillard on 10 July 2011.

Carbon price mechanism

The carbon price mechanism will begin on 1 July 2012, with a starting price of $23 per tonne. The scheme will have a fixed price period for three years and will then transition to a full emissions trading scheme.

Direct emissions associated with agriculture, fisheries and forestry are excluded from coverage under the scheme and these sectors' fuel use is also excluded permanently from a carbon price. It is the government’s intent to cover heavy on-road vehicles under the carbon price scheme from 2014-15.

Food processors

$150 million is available for food processors to implement energy efficiency measures or low emissions technology, including switching from coal to gas. Initial priority will be given to dairy processing, meat processing, malt production and sugar facilities. This program will be administered by the Department of Innovation, Industry, Science and Research.

Land Sector Package

A comprehensive $1.7 billion Land Sector Package was announced as part of the carbon price mechanism.

This includes a $429 million Carbon Farming Futures (CFF) Program. As part of the CFF, DAFF will be delivering the:

• $201 million Filling the Research Gap Program: will provide competitive grants funding to support research into emerging abatement technologies, strategies and innovative management practices that improve soil carbon and reduce greenhouse gas emissions from the land sector and enhance sustainable agricultural practice.
• $99 million Action on the Ground: will provide grant funding to regional landholders and research, industry and farming organisations across Australia to undertake projects to implement innovative management practices to achieve sustainable outcomes, reduce emissions and boost soil carbon stores. Outcomes from the Filling the Research Gap program will be applied on-farm, ensuring that laboratory results can be replicated on the ground in real farming situations influenced by business and economic signals. This also includes a 15 per cent tax offset for the purchase on minimum tillage equipment.
• $64 million Extension and Outreach: will fund coordinated communication across an expanded national network of extension providers to provide information and support for landholders to participate in the Carbon Farming Initiative (CFI) Utilising the extension skills and networks of groups and organisations such as Regional Landcare Facilitators and Caring for our Country Officers, farming and industry bodies, research and development corporations, universities and state governments, funding will be available for a range activities including workshops, field days and the engagement of additional extension officers.

The Carbon Farming Futures also includes $20 million for the development of offset methodologies for the CFI.

Other elements of the Land Sector Package include:

• $250 million Carbon Farming Initiative non-Kyoto Carbon Fund
• $946 million Biodiversity Fund
• $22 million Indigenous Carbon Farming Fund
• $44 million Regional Natural Resource Management Planning for Climate Change Fund
• $4.2 million Carbon Farming Skills Program
• $4.4 million Land Sector Carbon and Biodiversity Advisory Board

Information on all of the above measures can be found at the Clean Energy Future website.