The Carbon Farming Initiative. Convener, Primary Industries Adaptation Research Network Melbourne School of land and Environment

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1 Carbon Credits in the Land Based Sector The Carbon Farming Initiative Professor Snow Barlow,FTSE,FAIAST Convener, Primary Industries Adaptation Research Network Melbourne School of land and Environment University of Melbourne

2 2020 Bipartisan Target -144 million tons CO 2 -e 2020 bipartisan greenhouse gas reduction target is 5% reduction over 2000 levels

3 Projected emissions growth to 2020

4 Carbon Farming Initiative The Carbon Credits (Carbon Farming Initiative) Bill provides a mechanism to generate carbon offsets in the land based sector through Storage of carbon in the landscape Growing woody perennial vegetation Increasing soil carbon Avoidance of emissions from Enteric methane Nitrogen fertilizers Manure management Establishment of project approval mechanisms Appropriate projects Measurement methodologies Auditing Legislation currently in the Senate Will begin immediately late 2011

5 Project Development Proceedures. Potential Methodology Developers Public, NRM organizations, local governments, state tt and territory governments and experts Invited to comment on the methodology, Positive List and Negative List. DOIC advises Minister i on Positive List. Assesses methodology and advises Minister on Positive List. DCCEE Provides advice to the Minister on the Positive and Negative Lists Ministeri Approves methodologies and brings forward amendments to the Positive and Negative Lists. (The Positive and Negative Lists are regulations, subject to disallowance by Parliament).

6 Bio-sequestration Allowed activities Establishment of permanent environmental forest greater than 1 ha after 1 July Management of vegetation to increase carbon by promotion of residual seed sources, coppicing or animal management Application of biochar to soil. Emissions Avoidance Activities Capture and combustion of methane from legacy waste. Early season burning of large areas of savannah (greater than 1 km2) to reduce the intensity and frequency of fires in savannah regions. Culling of feral camels Reduced enteric fermentation Application of nitrification inhibitors to fertiliser Capture and combustion of methane from manure This list of allowed activities is not exclusive

7 Kyoto ACCUs Australian carbon credit units- ACCU s A unit issued under clause 138 of the bill. Carbon sequestration or emissions avoidance activity meets Australia s commitments under the Kyoto Rules. Kyoto Plantations planted post 1990 taller than 2m and greater than 20% canopy cover Methane emissions reductions Nitrous Oxide emissions reductions Savannah burning- N 2 O, CH 4 reductions Can be sold directly into regulated markets nationally or internationally Can be sold directly to the 500 big polluters at market price Market premiums may be possible

8 Non-Kyoto ACCUs Carbon sequestration or emissions avoidance activities that DO NOT meet Australia s commitments under the Kyoto Rules. Soil S carbon Forest management Conservation plantings Feral animal culling Can only be sold into voluntary markets Under the Securing Our Clean Energy Future (SOCEF) Gov established a $250million fund to acquire these credits Mechanisms or price for Gov to acquire are not yet established Gov has promised that it will seek to bring these Non-Kyoto activities into any future international agreements Thereby bringing them into the regulated market

9 Carbon Offsets will recommended to Minister by the Domestic Offsets Integrity Committee Integrity Criteria for recommendation Additionality- would the project have gone ahead in the absence of the CFI Has to be in addition to average practice Average practice to be defined Permanence Avoided emissions are a once off annually Bio-sequestration has to be maintained (100 years) Force majure conditions are now available Measurability and Auditability Transaction costs have to be manageable Internationally consistent and based on peer reviewed science

10 Opportunities for Victoria Generation of accredited carbon credits form the land based sector to offset the impost on the carbon tax on its industries Power generation Food processing Manufacturing Build on its strong research foundation to develop and rapidly implement the science and technology necessary to generate carbon credits Measurement technologies Mitigation and sequestration technologies Increased productivity from water and land resources