Standard 5: Conservative – Current definition: All assumptions and calculations and estimations should be conservative so there is no over-estimation of abatement levels.
Questions arising from the current definition of Conservative:
1.Does the skew towards the interest of the managing risk for the buyer reflect the current demand situation, where there is no compulsion to buy in most of the biggest markets around the world?
2. While we acknowledge the importance of demand, how will the Scheme operate without supply?
Recommendations
Carbon Farmers of Australia recommend that the issue of Conservative be considered in the light of the following Principles:
Principal 1. Conservative behaviour is inappropriate in an emergency.
Principle 2. It is the ultimate welfare of the buyer that should be the guiding principle.
Suggestions for Action on the issue of Conservative
Action 1. Promote a sense of urgency among buyers and other stakeholders.
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