Federal Minister for Agriculture, Tony Burke, has acknowledged that the current Kyoto rules are not fair for the farm sector, arguing there is no reason why well-managed pastures not be considered for their carbon storage capabilities.
Mr Burke said the next international agreement on climate change needed to match new science which would help bring more agricultural production into the carbon-capture fold.
"As we move through the international negotiations on climate change, there is a principle which helps in being part of the global solution and is a very good principle in the interests of agriculture as well," Mr Burke said.
"That is, to try as much as possible to get the accounting mechanisms internationally to match the science.
"Kyoto as the initial agreement was important but we should not pretend that it was a perfect landing place."
Mr Burke said the forestry sector was concerned about the Kyoto accounting model that presumes "the moment you chop a tree down, all the CO2 that was stored within it just disappears and runs out".
He said this was "scientifically wrong".
"We know it gets stored. To come up with methods of accounting for that gets us closer for the accounting mechanisms to match the science," Mr Burke said.
"In the same way, the fact that trees get counted but other green things don’t when it comes to carbon sinks we know is scientifically wrong.
"You don’t have to get past year eight at school science before you know that it's the 'green bits' that are doing the photosynthesis and yet well-managed pasture doesn’t get counted, but trees do."
Mr Burke said the government was working its way through the issues to advance a "framework" to be part of a global carbon pollution reduction scheme which would put Australia's primary producers "on a much better footing than under the current accounting rules".