Crown Lands Legislation Amendment (Carbon Sequestration) Bill 2006
Reverend the Hon. Dr GORDON MOYES: I thank the Hon. Rick Colless. It was 45 years ago since I studied botany, soils and chemistry and he has taken me back in a flood of memories, none of which I can properly remember. The Christian Democratic Party supports the Crown Lands Legislation Amendment (Carbon Sequestration) Bill. The object of this bill is to amend the Crown Lands Act 1989, the Western Lands Act 1901 and the Forestry Act 1916, to allow carbon sequestration rights to be granted over land covered by the amended legislation. This will provide for consistency in the granting of carbon sequestration rights across tenures in New South Wales.
This week honourable members have already had the opportunity to consider the nature and implications of the New South Wales Greenhouse Gas Abatement Scheme through the debate on the Electricity Supply Amendment (Greenhouse Gas Abatement Scheme) Bill. Honourable members know that the Greenhouse Gas Abatement Scheme commenced on 1 January 2003 and will now remain in force until 2021, rather than the original year of 2012. The scheme imposes mandatory greenhouse gas benchmarks on all New South Wales electricity retailers to abate the emission of greenhouse gas from the consumption of electricity in New South Wales.
The bill is important in assisting the reduction or abatement of greenhouse gases and supports the purpose of the Greenhouse Gas Abatement Scheme because it entrenches the opportunity to establish carbon offsets for approximately 50 per cent of non-freehold land in New South Wales. It is significant because it clarifies the rights available to those entities that are seeking to provide offsets for greenhouse gases through what is known as carbon sequestration.
In my contribution to the second reading debate on the Threatened Species Conservation Amendment (Biodiversity Banking) Bill yesterday, I mentioned the emergence of the relatively new phenomenon of greenhouse entrepreneurs. Interestingly, the example I referred to in that context covers the exact situation that is addressed in this bill. In my contribution I mentioned that C02 Australia is planting thousands of mallee trees in Condobolin, in the Central West of New South Wales. The company is generating revenue by claiming carbon credits for the carbon that each tree locks up in its root, trunk and branches as it grows through its transpiration system, through its leaves and photosynthesis. In that case it seems that trees were being grown on private land. This bill facilitates these types of ventures on lands in the Western Division and Crown lands covered respectively by the Crown Lands Act 1989 and the Western Lands Act 1901.
In the second reading speech in the Legislative Assembly, the Government indicated that carbon sequestration could be undertaken on State Forest land if Forests NSW grants the right for someone to do so. Western Division lands and Crown lands cover close to 50 per cent of land in New South Wales. However, up until the passing of this legislation, the exercise of carbon sequestration rights and other forestry rights have not been able to legally proceed on these lands. This bill removes any doubt that carbon sequestration may occur on Western Division and Crown lands. Grants will be able to be made under the relevant legislation for carbon sequestration rights with the consent of any lessee. In cases where land is held under a perpetual lease, the lessee may also grant the rights with the Minister’s consent.
Importantly, the bill will also allow for the imposition of forestry covenants and restrictions on use in connection with those rights. For example, the amendments allows the Independent Pricing and Regulatory Tribunal the discretion to impose restrictions on the use of land subject to carbon sequestration to guard against the depletion of carbon on the land concerned. As I mentioned before, Forests NSW may create rights over State forests and land that it owns. This bill will provide the ability for Forests NSW to grant carbon sequestration and forestry rights over timber reserves in respect of lands that it administers under the Forestry Act 1916. The bill clarifies that the statutory right of Forests NSW to take timber or products does not apply to any Crown timberland that is the subject of a forestry right within the meaning of section 87A of the Conveyancing Act. This will be the case unless Forests NSW holds the right.
Honourable members may like to know that this legislation will provide the platform for a unique partnership between the Government and the New South Wales Aboriginal Land Council. The bill will facilitate carbon sequestration to occur on lands claimed under the Aboriginal Land Rights Act 1983. Lands under the control of councils will be held subject to any carbon sequestration rights granted. It would be of interest to know the council’s viewpoint on this legislation. Clearly, this bill facilitates benefits on many fronts, most importantly for our environment. As mentioned in the second reading speech, plantings for carbon sequestration can provide important vegetation coverage, reduce wind erosion, which I know the Hon. Rick Colless would support, provide shelter belts for crops and stock, and in some cases, will provide migratory corridors for wildlife and birdlife.
However it remains to be seen whether the elemental forces of nature will assist the progression of carbon sequestration schemes. Significantly, in view of the hardship suffered by many of our farmers at present we can hope and pray that rain will fall to provide much needed respite for them. If the growth of mallee forests fails, in years to come a tree can be dug up, burnt and carbon radio dating can be used to remember that the people who gave the rights to plant them were in the Legislative Council.
The Hon. Rick Colless: Through the mallee roots.
Reverend the Hon. Dr GORDON MOYES: Indeed, through the mallee roots.
