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A Carbon Market Milestone Worth Cheering

Michael O’Ryan3 May, 2013 ClimateScience & Environment The call this week by the Indigenous Land Corporation (ILC) for exp ressions of interest in the first Indigenous-produced Australian Carbon Credit Units (ACCUs) marks a significant milestone for the emerging Australian carbon economy. The Fish River Fire Project is Australia’s first controlled savanna burning project to be approved under the Carbon Farming Initiative and is expected to produce 25,884 Kyoto compliant ACCUs. Fish River is a 178,000 hectare property located in the Daly River Catchment of the Northern Territory. The property is currently owned and managed by the ILC and is a culturally significant landscape for the Larbaganyan, Wagiman, Malak Malak and Kamu peoples who are the Traditional Landowners of the property. About the project Savanna burning under the Fish River Fire Project is delivering social, cultural, economic and biodiversity benefits while protecting a nationally significant landscape. Early dry season savanna burning is being conducted on Fish River to reduce greenhouse emissions that would otherwise be generated from late dry season wild fires. Indigenous Rangers are combining traditional burning knowledge with modern technology to help tackle climate change and generate a new income stream for future land management. Traditional pattern or mosaic burning has been used for thousands of years to protect the country from devastating hot burns. The project marries these traditional burning practices with the latest satellite imagery and mapping technologies. Each year early season ’cool‘ burns are planned across the property with particular attention given to fence lines and boundaries abutting other properties. This aids in preventing wild fires from adjoining properties entering Fish River and helps ensure its burning program does not impact on its neighbours. Burning is carried out through a combination of aerial and on-ground methods. Using GPS and mapping, small incendiary devices are strategically dropped from a helicopter-mounted Raindance machine, while in other areas Indigenous Rangers use drip torches to create fire lines and monitor the progress of the pattern burns. What are the benefits? Fish River Carbon Credits offer an innovative and unique solution for corporations to meet their carbon liabilities while making a difference to the lives of Indigenous Australians. The benefits can be grouped into six main categories: Global The Fish River Fire Project has reduced the area burnt in the late dry season each year from an average of 36 per cent during the baseline (unmanaged) period (2000-2009) to approximately 1 per cent in 2012. The project is expected to continue to deliver around 13,000 tonnes of CO2-e emissions abatement each year, making a positive contribution to the challenge of tackling climate change. Indigenous The project delivers training and paid employment for Indigenous Australians on their traditional country. Traditional Owners are involved in planning burning activity on the property and advising on fire and natural resource management activities. Economic Revenue generated from the sale of Fish River Fire Project generated ACCUs will be used to support ongoing land management activities, Indigenous jobs and training on Fish River. Socio- cultural The employment of local Indigenous people, many of whom have familial connection to Fish River, is facilitating access of Traditional Owners to the property, reconnection with cultural values and protection of important cultural sites. Environmental Under a comprehensive Plan of Management, Fish River is managed as an International Union for Conservation of Nature Category II Protected Area. The reduction of late dry season wildfires at the project area site helps protect the many rare and threatened animal and plant species found on the property, such as the Northern Quoll, Gouldian Finch and Masked Owl. Significant ecosystems are located on the property including monsoon forest, large areas of riparian habitat, nationally important wetlands and limestone karst formations. Assisting the development of other Indigenous fire projects The ILC is using Fish River as a demonstration to inform the development of other Indigenous fire projects across northern Australia. Michael O’Ryan is Director of Policy and Program Development at the Indigenous Land Corporation. The ILC is seeking exp ressions of interest from entities interested in purchasing the ACCUs from the Fish River Fire Project. Contact: Ms Nerissa Walton, Senior Policy and Environment Advisor, Indigenous Land Corporation on (08) 8100 7100 or email carbon@ilc.gov.au. Read more: http://www.businessspectator.com.au/article/2013/5/3/science-environment/carbon-market-milestone-worth-cheering#ixzz2SJ7PZ8dH Continue reading

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Warning EU Tax Will Hurt Savers And Investors

Monday 15 April 2013 The Financial Transaction Tax (FTT) will damage savers and investors across Europe, and will drive away the firms from whom it expects to raise billions of euros in taxation, it has been claimed. The Association of the Luxembourg Fund Industry (Alfi) was in Edinburgh highlighting its campaign against the controversial tax, which is set to be approved by only 11 EU member states but enforced in all 27. The FTT is one of three current EU financial sector initiatives being fiercely fought in the UK. The fund management industry faces a cap on bonuses to bring it into line with investment banking, while tighter solvency rules are said to pose a serious threat to pension funds. Anouk Agnes, a director of Alfi, said it strongly opposed the FTT. “We think it will be catastrophic for the investment fund industry, in Luxembourg but also in Europe generally. First of all we believe investment funds should not be in the scope of the FTT because they were not the origin of the financial crisis. “Second we believe it will not be the financial actors who pay the tax burden but the end investors, because obviously the costs will be added to the investments. “Finally we see the tax amounts that should be collected as an illusion, because we are afraid firms will find ways round the tax and even possibly relocate entirely outside Europe, which is in nobody’s interest. So it is difficult to understand who the FTT will ultimately benefit.” However Ms Agnes admitted that, politically, if 11 countries wanted to push FTT through they would. Alfi has said the tax “ultimately will have an extremely negative impact on all long-term savings of European Union nationals, including pension funds” and a “devastating effect on the long-term financing of the European economy”. Luxembourg is Europe’s biggest fund centre, with offerings that sold in 70 countries round the world. Firms using its “passported” UCITS funds include Aberdeen Asset Management, in 27 countries, and RBS in 23, and the funds support part of the back office operations in Edinburgh, of firms such as JP Morgan, Citigroup, State Street and RBS. Denise Voss of Franklin Templeton, vice-chairman of Alfi, said the FTT was supposedly intended to deter speculative activity, but would hit hardest at money-market funds, which could disappear because they were the funds trading the most frequently. “These costs will have to be picked up by somebody,” she said. “We believe the insecurity will make important actors leave and relocate.” The tax will apply to redemptions from funds, though not subscriptions, and on all buying and selling within funds. Ms Voss admitted this would have the least effect on equity funds with low turnover, and also that managers running broad funds for investors inside and outside Europe would probably not relocate. On the proposal to cap fund manager bonuses, Ms Agnes said: “The remuneration issue was related to banks and more specifically to investment banks and suddenly even UCITS are affected, which are already regulated and very transparent. The remuneration rules do not make much sense and are just an additional burden.” The current EU proposals would outlaw fund management bonuses that exceed fixed annual salaries, and extend the timeframe for some deferred payouts from three to five years. Daniel Godfrey, chief executive of the Investment Management Association, has said it will “have the opposite effect of what they are seeking to achieve”, raising costs for consumers and weakening the link between performance and rewards. Meanwhile, the National Association of Pension Funds warned new EU proposals to impose insurance company solvency rules on pension funds could increase UK scheme deficits to at least £450bn. Joanne Segars, NAPF chief executive, said: “This project has been conducted at breakneck speed due to the commission’s ludicrously tight timetable. This cannot be the basis for formulating a policy that could undermine the retirement plans of millions. “The European Commission needs to rethink its proposals… it would be better to focus on the 60 million EU citizens who have no workplace pension, instead of eroding the good pensions already in place.” Continue reading

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