Introducing the Whole of Farm Carbon Audit A modern Pathway to Generate Carbon Credits from Australian Land Use Change.

Transcription

1 Introducing the Whole of Farm Carbon Audit A modern Pathway to Generate Carbon Credits from Australian Land Use Change. Louisa Kiely Carbon Farmers of Australia

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3 Stronger Rural Communities Healthy Farm Families Healthy Profit Soil Carbon Credits Healthy ecology Biodiversity Soil Fertility Reduced Salination Better Water Use Improved Soil Structure Less Erosion Increase Soil Carbon The Benefits of Soil Carbon Credits

4 Why A Whole of Farm Carbon Audit? Farms are mulit dimensional They have a large and diverse Carbon Resource. Each Method has differing abatement potentials. May need more than one method to add up to 2000 tonnes, and/or you could become a bigger project. Emissions Reduction methods offer more immediate cash flow Sequestration takes longer (apart from AD) This gives potential for a longer income stream.

5 How does it work? You need to look at the whole farm. Don t think just about the Emissions Reduction methods. - As there may be other potentials outside the straight carbon market. (eg Wetlands restoration, offsets for other things like mines) Look at everything that emits CO2e, or stores it! Cows, sheep, fertiliser, diesel, trees and soil This may be thought of as a carbon footprint - BUT you don t need to do the calculations or use a calculator at this point - Its an overview.

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7 How to use my carbon resource? For the purposes of Carbon Trading in Australia right now, the next step is to: Identify Which enterprises fit a Carbon Trading method. Gain knowledge about what is available and how it works. Then: What am I prepared to do What changes to become more carbon efficient or store carbon? We ll go through the methods tomorrow!

8 What would you like to do on your land to store carbon and be issued with Australian Carbon Credit Units for the activity?

9 What would you like to do on your land to reduce emissions and earn credits? Save Nitrous oxide in irrigated cotton Replace urea lick for cattle Finish Beef Early This is called herd management Improve efficiency of farm machinery fuel efficiency Improve fuel efficiency of stationary pumps and/or other electricity uses

10 What would you like to do on your land to store carbon and earn credits? Store carbon in soil Protect or maintain the existing native forest Let the cleared land revert to native forest Plant seeds or seedlings on cleared land to establish a permanent forest Plant seeds or seedlings on cleared land to establish a forest plantation for harvesting

11 Scenario So, you might be a mixed farming enterprise with Cattle Grazing, for instance. You could: Change cattle management to increase soil Carbon. Eg: Grazing intensity. Change feed supplement to improve methane emissions Investigate ways to turn cattle off earlier. Think about fuel switching or other efficiencies in mobile farm machinery or Stationary pumps etc. Identify marginal land to plant trees on or take stock off. WE ll go through some scenarios with figures in the ADVANCED

12 Next Steps. Carbon Abatement estimates for each method. This is where it gets technical. Carbon Calculators are available for some of the methods. You might decide to work with a Carbon Advisor at this point. You need to ensure the methods are compatible ie: you can run them concurrently. Or go to some of the calculators now available to get estimates. Eg; GGAS

13 Planning Once you have your estimates, you can do the planning/execution (alone or with an Advisor) WHICH methods have the best cost/return potential? Which activities appeal - Eg: What will I do to make my machinery more efficient, store soil carbon etc. How long for a return? Can I get a cash flow one or two while sequestration takes effect?

14 Implementation So Now you have your plan - You ve done the ground work. Which land, which methods. You are going to engage with Direct Action so you need now to Register your project Choices become: Put in project application - Then begin project when approved - NO matter if going in the ERF. Or When project approved, apply to enter ERF auction and wait to begin AFTER you see if you are successful More detail over next day AND Advanced

15 Carbon Farmers of Australia Market Mechanism Database* Aggregator Australian Voluntary Soil Carbon Standard Carbon Exchang es Corporate Market Brokers *Web-based system for tracking environmental counters across a large group.

16 Sale of Credit Units You want to ask your Carbon Advisor: Are they method specialists, or will they look at all methods for your farm? Who will register the project Handle enquires from CER Oversee audit/reporting What is the fee structure. Partnership arrangements working well right now. Especially for sequestration. If they have skin in the game you can sleep at night.

17 What about risk management? A whole of farm carbon audit either with others or on your own: Reduces costs of audit/reporting etc. Increases potential to get a Govt. contract under ERF. Results in a bigger pool of carbon more options for any issues Can increase income stream - 7 years for emissions reduction, then another 10 for sequestration.

18 Regional Carbon Trading model The Ultimate climate change opportunity?

19 Pathway to Regional sustainability OUTCOMES 1. Encourages a Regional Approach Only needs ONE successful group project and the flow on will give a template for others. 2. Improve Regional understanding of carbon sequestration and climate change. 3.Enhance potential to gain funding. Eg: Cobar drought proofed for next years.

20 Principles Climate challenges demand new approaches Carbon now has a price, and has trading potential - AND is future focussed and has co-benefits. To stay relevant, the LAND sector must engage with Policy This policy may require a farmer to use more than one method to gain size. All citizens wish to be part of the solution. Adopt a sheep is an example.

21 Outcomes NEW enterprise. With co-benefits. Co benefits - Lowered costs, better soils. Drought proof farms and districts. Your vision of what your district could look like The desired condition of your district The IDEAL state of the resources in your district - ie buy in.

22 Objectives Maintain and Enhance Grazing and Cropland Productivity Protect Farmland from Conversion to Non-agricultural Uses Protect Water Resources Maintain Regional success in face of climate change by aiming for self sufficiency

23 Carbon Trading Industry Cluster A fully functioning carbon trading industry cluster will have over 30 different business types: Carbon sequestration Carbon credit aggregation Carbon accounting Carbon credit authentication Carbon sink facilitation Carbon trading brokers both retail and wholesale Laboratory testing for carbon Energy emission consulting Green buildings & retrofitting New technologies R&D and practices Ecological footprint analysis Financial services Sustainable farm consultancies Aerial spectroscopy Aerial & ground spraying Climate change knowledge services Renewable energy generation o o o o o o o o Farm forestry Plant nursery s biofuels biomass wind wave solar Plantation harvesting hot rocks cogeneration algae fuels Resource efficiency- energy Biological agents Carbon audits

24 Other Outcomes Farmer outreach. Information on: Diseminate knowledge on Known carbon farming methods Innovation thinking. Evolution of ideas, lowering of costs. Market knowledge and information. More people understanding HOW carbon trade works and how to use it. Local Companies buying credits from local farmers to lower their emissions. Could lead to carbon neutral communities. Show Leadership.

25 Example. The Carbon Townsville Community Cluster comprised a group of like minded entities and individuals who believe by collaborating Townsville: can make a real difference in the abatement and offsetting of carbon emissions has the potential to act as a hub for carbon trading for all of Australia can reduce the carbon footprint for the North Queensland region to neutral can become known as Carbon City due to Townsville being internationally recognised as a leader in the move to a low carbon economy

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27 What s in it for companies? Many regional areas have mines/electricity /commercial and council companies. If people could work together an even bigger bid could be mounted as these companies can take part. Commit to levels of reduction to protect environment and protect shareholder liability. Outside mandatory market. Community support leads to better labour market, long term investment in climate stabilization with best win/win solution for Regional Australia

28 Moving Forward Don t commit your entire property to any one scheme Put a toe in the water, but start now. Think whole of farm. Ask your Carbon Advisor if they specialise in one method or go across method. Do they hold an Australian Financial Services Licence? Sign up at for updates Get advice from people who have a track record- Those who have experience in Carbon Farming, and the ERF. How long have they been operating? If it sounds too good to be true, it probably is Learn about Emissions- Question methods.