It has been a while since over 1,500 agricultural and Indigenous land managers participated in our ‘Profiting from Climate Change’ course and a lot of exciting things have happened during that time! The Government recently passed something called the Carbon Farming Initiative (CFI) which is the first of its type in the world. The CFI allows farmers and land managers to generate carbon credits on their land that are saleable on both the domestic and international market. This piece of legislation along with the Government’s proposed Clean Energy Future plan will mean a substantial shift in how carbon is viewed across the Australian landscape. This is creating significant opportunities for landowners to engage in activities that generate credits on their land so we thought it timely to post an update to fill in our previous workshop participants on what’s been happening in this space and to touch base on some of the opportunities that may be present.
What’s been happening?
In August this year, the Government passed the CFI through parliament. This piece of legislation will reward farmers and other land holders for undertaking activities that either reduce or remove carbon from the atmosphere. You can learn more about how the CFI is going to work here.
The Government has also announced the details of the Clean Energy Future plan which aims to price carbon emissions in the Australian economy. The agricultural and land sector will be excluded from having to pay any kind of ‘carbon tax’ and this policy will actually create a sizeable market for carbon credits developed in rural Australia. Alongside the carbon price, the Government has also announced billions of dollars in funding for the land sector over the next few years – you can learn more about that here.
What are the opportunities?
The CFI enables carbon credits to be generated from activities such as planting trees, capturing and combusting emissions from manure, using less or different types of fertiliser, reducing emissions from livestock as well as avoided deforestation. There are also proposals to create carbon credits from activities like the culling of feral camels and pigs in order to avoid methane emissions. It is important to note that there are strict rules governing these projects that must be adhered to and which determine which projects are eligible. A list of the kinds of activities that the Government definitely will and will not allow can be found here. So what are the benefits? Put simply, entering the carbon market provides a chance for the creation of new income streams whilst also contributing to a better environment.
What about soil carbon?
There is no doubt that the idea of soil carbon is exciting and has the potential to create significant opportunities for rural land managers. The CFI recognises this and provides the theoretical framework to create carbon credits from soil carbon projects. Right now though, there is no widely accepted or approved way to carry out a soil carbon project. There is currently a lot of work being done in this area but some say it may be a while before farmers are rewarded for this type of practice as there are some major hurdles that need to be overcome before these projects can be approved. We’ll be keeping a close eye on this area and will be sure to share updates via our website and mailing lists about any developments as they arise.
What should I do?
If you’re land manager interested in the opportunity for creating carbon offsets on your property, it is important that you first get all of the information and don’t rush into things. One of the easiest and most accessible ways landowners will be able to create carbon credits will be through planting trees in areas where it makes sense, like degraded land and along creeks. It is important however to make sure the numbers add up and that the implications of doing this are fully understood. This is not always a simple process and therefore, from around $550, we can provide the information you need to make the right decisions going forward. We work with landowners of all sizes to undertake feasibility studies for carbon forestry projects. If you’re interested, contact us to discuss further.
What’s been happening on the ground?
There is a hunger in the market for high quality, locally developed carbon offset credits. Some of Australia’s largest companies have been in touch with us to see how they might engage with rural Australia and develop or purchase carbon credits in partnership with farmers and other land managers. It’s also interesting to know that iconic bush outfitter RM Williams has thrown their hat in the carbon ring by purchasing a 5,000 square kilometre property in the Northern Territory with the intention of creating carbon and environmental projects. You can read more about that here. We’ve also been busy putting together an updated training course for farmers and land managers that allows them to identify and take advantage of the opportunities available on their land. Although previous participants are not eligible for reimbursement of costs again, we are offering a significant discount for those land managers who have previously attended and want to get up to date with the latest developments. You can find out more about that by visiting our website or contacting us.
Phone: (07) 3844 4595
Fax: (07) 3846 6919
E-mail: admin@carbonhouse.com.au
Website: www.carbonhouse.com.au
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