Home / Knowledge / News / Textiles / Cotton Australia - hard at work on Carbon Policy
Cotton Australia - hard at work on Carbon Policy
04
Jul '11
Cotton Australia has been keeping abreast of Government developments for policies to reduce carbon emissions, namely the proposed carbon tax and direct action initiatives such as the Carbon Farming Initiative.

Along with the NFF, Cotton Australia has been working to understand what these policies might mean for the agriculture sector and cotton businesses, in order to engage with policy makers and provide information to growers. This has included recent modelling work undertaken by the Australian Farm Institute on a carbon price scenario.

Independent researchers at the Australian Farm Institute have been analysing the potential impact of the proposed carbon price mechanism on the profitability of farm businesses in Australia, across different commodities. Coordinated by the NFF, the process has so far seen the release of results for the sheepmeat and grains sectors.

Cotton Australia has participated in this process, providing funding and industry data to support the development of a paper outlining impacts of a carbon price on cotton businesses under various carbon price scenarios.

Key findings include:

• The results have included a scenario whereby agriculture is assumed to be an uncovered sector (i.e. costs are not imposed on direct farm emissions) and fuel is included (i.e. costs are imposed on emissions arising from fuel). Modelling under this scenario has indicated that for a 'model' farm of 400 ha irrigated cotton, after five years following the introduction of an economy-wide carbon price tax commencing at $20/t, the farm business would incur total annual cost increases of 2.1%, amounting to $30,992 additional annual costs. This would result in a reduction in farm net income of 5.5% (at year five).

• At a carbon price scenario of $36/t (the price expected over the longer-term if Australia is to meet its target of reducing emissions by 5%), projected total annual cost increases would rise by 3.2%, amounting to $47,237 additional annual costs. This would result in a reduction in farm net income of 8.4% (at year five).

• Costs arise from an increase in the price of energy, which would increase the cost of energy-reliant farm inputs (e.g. electricity, fuel and fertiliser).

• The additional costs calculated in the modelling include both on-farm and additional post-farm gate costs, which have been assumed to be fully passed onto the farm business. In reality, whilst the latter is not a direct cost, it is anticipated that these costs will be passed back to growers in the form of higher processing costs and/or lower prices.

• If fuel is excluded from a tax, expected impacts are significantly reduced through a reduction in the increase of on-farm costs relating to fuel use (e.g. machinery operations) and post-farm gate transport from gin to port. If fuel is excluded, farm and processor costs are both expected to contribute approximately 50% of the total increase in costs. This is compared to a scenario where fuel is included, where farm costs are projected to rise by a greater amount than processor costs (contributing to 80% of the total increase in costs).

Cotton Australia


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search