senate debating food vs carbon credits, page-3

Media Release
NEW TAX ARRANGEMENTS FOR “QUALIFYING” FOREST CARBON SINKS
CO2 Group Limited (CO2) today applauded changes to the taxation arrangements for
carbon sinks, saying that the amendments will assist in attracting investment to carbon
sink projects across Australia.
The proposed May 2007 Budget tax arrangements for carbon sink developments were
passed by the Australian Federal Government.
As at 1 July 2007, investors in qualifying forestry carbon sinks developments will be able
to utilise the horticulture taxation arrangements, with immediate deductibility for the first
five years, as an incentive to invest in carbon credits.
CO2’s Chief Executive Officer Mr Andrew Grant said: “This amendment of the Taxation
Act for forest carbon sinks has finally removed the uncertainty surrounding the tax
deductibility for forest carbon sink programs for both corporate Australia and the forest
carbon sink industry.”
“The amendment reduces the cost of establishing dedicated forest carbon sinks and will
help to drive further investment in carbon sink projects,” said Mr Grant.
“Further, the release of the Federal Government’s Green Paper on the Australian Emission Trading Scheme (AETS) design, which is expected to be released next month,
will be an important step forward for the carbon sequestration industry.
“Existing clients and potential new clients have been waiting to see the details of the
Green Paper and the proposed form of the AETS before committing to new significant
forest carbon sink projects,” said Mr Grant.
“CO2 believes that these two significant events will result in forest carbon sinks playing a
significant role in early greenhouse gas abatement actions by corporate Australia prior to,
and on commencement of, an AETS.”
The AETS remains on track to commence in 2010.
For further information concerning this media please, please contact Mr Andrew Grant on
(03) 9787 9766.
Yours faithfully
CO2 Group Limited
Harley Whitcombe
Company Secretary
Media: for more information please contact Emily Staniforth, Wilkinson Media: 0402
349 856
About CO2 Australia:
CO2 Australia creates carbon credits by establishing long-term, commercial-scale mallee

I agree YC this company is heavily reliant on Government Policy, this is long term and carbon emmision issues are still firmly on the radar of the Labor party.