BP tree spree to offset emissions

Australian
Thursday 15/10/2009 Page: 20

EUROPE'S second-largest oil company, BP, has hired Perth based Carbon Conscious to plant 10 million gum trees in Australia to absorb greenhouse gas emissions as companies prepare for the introduction of climate change laws. The deal sent Carbon Conscious shares soaring 10% to close at 44c. The company will begin planting trees on marginal farmland in 2010, at an initial cost of $2.5 million. It is the second major deal for Carbon Conscious, which confirmed an agreement with Origin Energy in July to plant $26m worth of trees over three years.

The trees "sequester" carbon dioxide, pulling it out of the atmosphere and storing it. Carbon Conscious chief executive Peter Balsarini said the mallee eucalyptus trees would be planted on working farms. "We go to farmers and we look for their marginal, less productive country," he said. This included land that had been over-cleared or affected by salinity, Mr Balsarini said. "We are looking at preventing salinity by getting our tree roots into the water table and lowering it. It has risen because of the over-clearing of the land," he said. Carbon Conscious became an accredited provider under the federal government's Greenhouse program last December.

This year it has planted 1500ha on eight farms. Next year it is looking to plant 6000ha. "We are looking at sizeable plantings in the near future that might equate to 25,000ha in Western Australia on a per annum basis," Mr Balsarini said. He would like to see the plantings extended through the eastern wheat belt. Mr Balsarini said the deal with BP was °'a recognition that they see there is value in Australian forestry from a carbon perspective.

They are a European company, they have traded in carbon credits before, and they know the carbon markets well." The trees will produce Australian emission units that will be tradable under the Australian government's proposed carbon pollution reduction scheme. BP's regional director of emissions offsets, Mr Rajeev Suri, said the deal was the initial stage of what might be "a very significant part of BP's carbon management in Australia". Trees must be planted on agricultural land that was cleared before 1990, and must remain in place for 100 years.