Head of policy at British-based carbon specialist investment banking house Climate Change Capital (CCC), Kate Hampton, says the potential commercial opportunities presented by the transition to a low-carbon economy were considerable for Australian farmers and agribusinesses.

But she says the sector must engage with government and participate in the policy debate to address climate change.

Ms Hampton told the annual Rabobank Australia & New Zealand Food and Agribusiness Advisory Board meeting in Sydney last week that Australia's agricultural sector could not ignore the challenges of climate change and must ensure it played a central role in finding a coherent, integrated vision to manage and adapt to climate change.

"As big land managers, those in the agricultural sector have a major role to play," she said.

"There will be long-term global opportunities for farmers who can respond coherently to the twin challenges of climate change and food security.

"Australia and New Zealand are well placed to capture a first-mover advantage."

Benefits for the sector would include increased efficiencies, productivity and sustainability of farming operations, through initiatives including improved water management, renewable energy and promotion of eco system resilience.

The potential to be global leaders in innovation was also highlighted by Ms Hampton as a factor that could see long-term benefits accrue to Australian and New Zealand farmers as they search for strategies to reduce the carbon footprint of agriculture and then commercialise these globally.

She said that although Australia's contribution to overall global carbon emissions was relatively small, there was a clear potential for 'first-mover' advantage by being a world leader in addressing climate change.

This was especially the case for agriculture, where the combination of fundamental demand for food from a growing world population and the need to, at the same time, reduce carbon emissions from farming would bring clear commercial benefits for those who could achieve this in the longer term.