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

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Urmil Arya

Sushila International, a well established textile organisation established ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Giorgio Mantovani
Corman S.p.A

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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