Carbon Farming in Australia. Richard Eckard

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1 Carbon Farming in Australia Richard Eckard

2 Australian Emissions Context DCCEE 2013

3 Australian Emissions Context Agriculture 57% of all methane 75% of all nitrous oxide Enteric Methane 11.5% of National emissions Nitrous Oxide from soils 3.4% of National emissions DCCEE 2013

4 Typical Farm Emissions N2O - Indirect 1% N2O - Dung, Urine 3% 0% N2O - N Fertiliser 0% CH4 - Manure 0% Dairy 3-7 t CO 2 e/cow 4 45 t CO 2 e/ha 8 21 t CO 2 e/t MS CH4 - Enteric 96% N-Beef 2 t CO 2 e/au 0.12 t CO 2 e/ha 14 t CO 2 e/t beef Grains t CO 2 e/ha 0.04 t/co 2 e/t grain Eckard, Grainger & de Klein 2010; Browne et al. 2011

5 Australian Methane Emissions from livestock DCCEE 2011

6 Gg (1,000 Tonnes) CO2e Nitrous oxide from cropping and animal production 4,000 3,500 3,000 2,500 19% 24% 23% 17% 2,000 1,500 1, % 4.8% 7.2% 0.1% 0.2% 0 DCCEE 2013

7 Methane Methane = 25 x CO 2 Short time in atmosphere 8 to 12 years Atmospheric Concentrations Pre-industrial ppb Current ppb (in 2012) 260% above preindustrial IPCC 2007

8 Nitrous oxide Nitrous oxide = 298 x CO 2 Long time in atmosphere Atmospheric Concentrations Pre-industrial ppb Current ppb (2012) 120% above pre-industrial level IPCC 2007

9 The Carbon Cycle in Grazed Pastures Nitrous Oxide (N 2 O) [298 x CO 2 ] Methane (CH 4 ) [25 x CO 2 ] Carbon dioxide (CO 2 ) CHO Nutrients Residues > 2mm POC/fast > mm Humus/slow <0.053 mm Photosynthesis = Respiration + Mineralisation Photosynthesis Respiration + Mineralisation + Methane Decomposition Microbial Biomass Eckard, 2009

10 Australian Policy Context Direct Action policy Reverse Auction on emissions Establish the Emission Reduction Fund (ERF) White and Green paper process Buy up the cost curve Budget = $300 million, $500 million and $750 million Bipartisan support for the CFI Expand the scope of the CFI

11 The Carbon Farming Initiative The Carbon Farming Initiative Landholders can receive carbon credits for: Reducing methane and nitrous oxide emissions Increasing the carbon stored in soils and vegetation Participation is voluntary Sell credits Under reverse auction Competing with all sectors Voluntary markets X

12 The Carbon Farming Initiative Domestic offsets integrity commission (DOIC) Integrity of carbon offsets generated Assesses proposals for methodologies Recommends to the Minister Clean Energy Regulator Approves CFI projects Allocates credits (ACCUs)

13 Positive and Negative lists CFI POSITIVE LIST - The positive list is a register of abatement activities eligible to earn carbon credits under the CFI. - Credits can only be issued for additional abatement. - For additional abatement CFI projects must: 1. go beyond common practice 2. not be required by law, 3. not be on the negative list of activities, and 4. apply a methodology that has been approved for use under the CFI. CFI NEGATIVE LIST - In order to minimise adverse impacts on the environment and local communities, the CFI includes the following three mechanisms: 1. Project proponents must take into account the natural resource management plan relevant to their region. 2. Projects must comply with any applicable planning and environmental requirements. 3. Projects cannot be approved if they are identified on the negative list. - The negative list outlines types of projects likely to adversely impact: o water availability o biodiversity conservation o employment o local communities, and o land access for agricultural production.

14 Integrity Standards Additional - Beyond standard industry practice Permanent Carbon stored for 100 years, but could be changed to 25 years Avoidance of leakage - No increased emissions elsewhere Based on peer-reviewed science Measurable Conservative Internationally consistent

15 CFI Offset methods Registered Agriculture Projects ACCUs issued Piggery manure 4 0 Piggery biodigesters 1 0 Feeding dietary oils in dairy 0 0 Dairy anaerobic ponds 0 0 Vegetation Projects ACCUs issued Avoided deforestation Regeneration of a permanent even-aged native forest 1 0 Environmental Plantings 8 0 Savanna burning 9 0 Reforestation and Afforestation 7 0 Native mallee eucalypt 0 0 Landfill Projects ACCUs issued Capture and combustion of landfill gas from legacy waste Diverting Legacy Waste from Landfill to Fuel Diverting waste to an alternative treatment facility Enclosed mechanical processing and composting alternative waste treatment 2 0 Capture and combustion of landfill gas

16 Climate Change Research Program (CCRP) 2009 to 2012 Round 1 Round 2 Soil Carbon Research Program $9.6M (SCaRP) Mitigation $15.9M Adaptation $11.5M Demonstration $7.7M National Biochar Initiative $1.4M Reducing Emissions from Livestock Research Program (RELRP) $11.3M Nitrous Oxide Research Program (NORP) $4.7M

17 Carbon Farming Futures, Filling the Research Gap (FtRG) Round 1 (57 projects $47M) Round 2 (31 projects $30M) National Soil Carbon Program (NSCP) $13.2M National Agricultural Greenhouse Gas Modelling Program (NAGMP) $1.8M National Agricultural Manure Management Program (NAMMP) $3M National Livestock Methane Program (NLMP) $13.8M National Agricultural Nitrous Oxide Research Program (NAORP) $14.1M

18 Mitigation % Enteric Methane Mitigation Eckard, Grainger & de Klein 2010 Timeline BMPs Dietary Supplements Vaccination Breeding Rumen manipulation Low Likely Medium Impact High Immediate High Herd Management Timeline Confidence Biological control Silver bullet Longer Term Low

19 Mitigation % Nitrous Oxide Mitigation Timeline 25 Biological control Silver bullet BMPs Nitrification Inhibitors Diet Herd Management Animal Breeding Secondary plant compounds Plant Breeding Soil Microbial Manipulation Low Likely Medium Impact High Immediate High Timeline Confidence Longer Term Low De Klein & Eckard 2008

20 Options for abatement - Methane Feeding (now) Diet quality (pastures, legumes) Diet Supplements Oils, Grape Marc Grain feeding Management (now) Animal numbers Improving efficiency Animal and plant breeding (medium term) Efficiency Less methane Microbial manipulation (long term) Eckard et al. 2010; Moate et al. 2010

21 Options for abatement N 2 O Nitrogen fertiliser Rate, source, timing, placement Formulation Inhibitors & slow release fertilisers Soil and water management Compaction, irrigation, drainage Animal management (urine) Balancing protein and energy Plant breeding Microbial manipulation ENTEC

22 Some offset methods in process for broadacre Ag Dietary oils Approved for dairy cattle Nitrogen rate Finalised in 2014 Feeding nitrates Method approved for public consultation Soil carbon Standard protocol developed No approved method as yet (2014?)

23 Tools Greenhouse Accounting Frameworks Dairy-GAF Sheep-GAF Beef-GAF Feedlot-GAF Grains-GAF

24 Tools FarmGAS DGAS PigBal Cotton Greenhouse Calculator Vegetable Carbon Calculator Horticulture Carbon Calculator Banana Greenhouse Calculator Wine Industry Greenhouse Gas Calculator

25 Links Carbon Farming elearning course Resources Centre Tool Kit

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