An emissions trading scheme in Australia would inevitably mean that carbon sink forestry will compete with agriculture for land, a soon to be published report says.
Commissioned by the Australian Farm Institute from GHD Hassall, the study is a review of existing research into how a price on carbon would drive carbon sink forestry and its interaction with agriculture.
The potential for carbon sink forestry is substantial, the report found.
One modelling exercise found that at a carbon price of $20 per tonne, it would become viable to plant oil mallees across 5.5 million hectares of cleared agricultural land in South Australia.
Another study estimated that if carbon were priced at $25/t, carbon sink forestry would be more profitable than agriculture across 7.9 million hectares. At $45/t, this would climb to 39 million hectares.
The GHD Hassall report notes that while carbon sink forestry would affect fire regimes, catchment water balances and have socio-economic impacts on certain areas, much would depend on whether the plantings were in large blocks or smaller, scattered plantings well integrated into the agricultural landscape.
The report will be released in coming weeks.
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