Garnaut - Farming out but forestry in

While agriculture is to be locked out of the national emissions trading scheme, the forestry sector has welcomed its inclusion.

The National Association of Forestry Industries (NAFI) says Professor Ross Garnaut's report to Government released today, "reinforces what NAFI has said time and again" that in order for Australia to meet its emission reduction targets, forestry must be fully included under the ETS from the outset.

NAFI chief executive Allan Hansard says forestry has a significant role to play, and by 2020 Australia's forest industry is projected to contribute 81 million tonnes of carbon dioxide abatement, which equates to 20pc of Australia's total abatement task.

"This contribution has been recognised in the Garnaut Climate Change Review draft report with the recommendation that there should be unlimited carbon offset credits accepted from forestry under the emission trading scheme," Mr Hansard said.

"NAFI is particularly pleased that the review draft report also recommends the recognition under an emission trading scheme of carbon stored in wood products as this is another significant source of carbon abatement."