AGFORCE PROJECTS

Carbon Farming Initiative

The Carbon Farming Initiative (CFI) is an Australian Government scheme to help farmers, forest growers and landholders earn income from reducing emissions like nitrous oxide and methane through changes to agricultural and land management practices.

Administered by the Department of Agriculture, Fisheries and Forestry and Department of Climate Change and Energy Efficiency, the scheme will establish a carbon crediting scheme, develop methodologies for offset projects and help farmers access domestic and international carbon markets

The Carbon Farming Initiative includes:

• Legislation to establish a carbon crediting mechanism
• Fast-tracked development of methodologies for offset projects
• Information and tools to help farmers and landholders benefit from carbon markets.

For more information visit the Department of Climate Change and Energy Efficiency

CFI Offset Methodologies under consideration

• Avoided Emissions from diverting waste from landfill for process engineered fuel manufacture
• Savanna burning
• Management of large feral herbivores (camels) in the Australian rangelands
• Capture and combustion of landfill gas
• Destruction of methane generated from manure in piggeries  
• Environmental Plantings

For more information visit the Department of Climate Change and Energy Efficiency

CFI - Things for primary producers to consider

• The program will commence in July 2012
  
• All offsets must meet the National Carbon Offset Standard. 
  
• Abatement activities can generate credits for trade in either the domestic voluntary market or international voluntary and compliance markets. This will begin to unlock the abatement opportunities in the land sector which currently makes up 23 per cent of Australia’s emissions (including power and transport)

The Carbon pricing policy will affect everyone; however, not all farmers will trade in the CFI offsets. Offsets can only occur for activities that are not protected under any other legislation and not deemed as common practice.

Legislation to be considered includes:

Vegetation Act 1999

• All Remnant and protected regrowth vegetation is excluded from any offset activity
• Most likely needs to be locked in as white on a PMAV

 Land Act – Leasehold

• Leaseholders currently do not have the rights to trade vegetation related offsets
• Native title considerations needs to be defined before any agreement is finalised
• Queensland Government is currently looking a modifying the Act to allow leaseholders rights to trade vegetation carbon

Things to consider when planning to undertake trading in a carbon offsets market:

• Use of fire – Can you use fire as a management tool and how would fire affect the carbon stock
• Pasture Management, will the offset affect pasture on your property
• Are your current management practices better than best practices for your area?
• Are your current pasture management practices above any legislation requirement as defined under a Delbessie Land Management Agreement and/or REEF ERMP?   
• Are your current management soil practices better then best practices for your area, including zero til cropping?
• Is your planned offset above the business as usual benchmark and above industry best management practices?
• How much and how often will measurement be required, including record keeping / auditing?
• How much will it cost to finalise agreement including broker and legal fees?
• How much income potential is lost by locking areas as offsets eg. calculating grazing vs carbon?
• How will it affect the saleability of the property in the years to come?
• Is there an advantage to delay signing an offset contract? Will the price of carbon increase over time?
• What is the payment method, one off, yearly, every five years?
• Can you get approval from all parties? Government (Leasehold), Native Title, banks, family members (trust)

Potential risks

• Fire – short term loss of carbon stored
• Biosecurity / Disease  – e.g. Myrtle Rust
• Drought - short term loss of carbon stored and long term loss of vegetation
• Cyclones - short term loss of carbon stored and long term loss of vegetation
• Climate change – die back due to environmental growing envelope changes
• Market  failure

Offset projects: The rules?

• Additional - Is it new abatement? (“Abatement should be “additional” to “business-as-usual” if it used to offset emissions”)
• Not protected by legislation
• Not ruled as common practice
• Not ruled as being “business-as-usual”
• On the “Positive list”
• More than what you are doing now
• There could be some activities where a back date rule will apply e.g. Establishment of a permanent planting since 1 July 2007

Positive List?

• The Minister and advisors make the final ruling on what goes on the positive list.
• Examples of two before the committee include Savannah burning and culling wild camels.
• Others being considered include trading emission reduction due to a change in cattle diet?

Negative List

• Sequestration already protected by legislation e.g. high value regrowth
• Tree plantings which affect the environment
• Clearing of native vegetation to develop a carbon sink
• Establishing vegetation on land cleared of native vegetation since 1 July 2007
• Projects that have a potential risk to the local community.  

Is it measurable?

• Measuring tree growth
• Detecting increased soil carbon
• Detecting reduction of cattle emissions because of a change in diet or management
• Verification based on implementing land management practice rather than measured abatement

Is it permanent abatement?

• “abatement should represent a permanent reduction in CO2 in the atmosphere”
• Forestry offset: “100 year rule”

Clean Energy Future

As part of the Clean Energy Future Plan announced by the Prime Minister on 10 July 2011, the Australian Government has committed to a number of complementary land sector measures. Further detail on these measures can be found at Clean Energy Futures