Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

Under the scheme as it currently is, there are voluntary opt-in provisions in relation to forestry. These are in the primary legislation. It is a voluntary opt in, which means that you can gain a permit but then, if you choose to harvest, you would have to remit a permit for the equivalent amount—for however much carbon is deemed to be no longer sequestered as a result of harvesting.

You do refer to an issue with current international accounting rules which do not recognise the sequestering of carbon in wood products. That is an issue; it is something Australia has said should reflect better the reality of what occurs in terms of wood products. I make the point, though, that you would also then have to account, for example, for—and this is one of the reasons it has been problematic—what happens when the wood rots and who that is allocated to. The current international accounting rules draw a line. You raised an issue that Australia, under both governments I think, has been discussing in the international context for some time, but the bill before the chamber reflects the current international rules.