Carbon Farming Initiative Opportunities and challenges This presentation provides an overview of challenges and opportunities available under the CFI and the challenges in developing the methodologies. The source of this presentation: Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education DIICCSRTE June 2013
Outline • Carbon Farming Initiative • Recap • Progress • Carbon Farming Initiative opportunities • Methodology development challenges
CFI recap • Landholders can receive carbon credits for: • Reducing emissions • Increasing carbon stores • Kyoto and non-Kyoto compliant activities • People and businesses can buy CFI credits from landholders to offset their own emissions • Alternate source of income for farm businesses
Land Sector Emissions The land sector makes up nearly 20%of Australia’s total greenhouse gas emissions Quarterly Update of Australia’s National Greenhouse Gas Inventory: September 2012, released 2013.
What have we achieved so far? Carbon Farming Initiative Land Sector Measures Filling the Research Gap 13 683,000t $47.3m Methodology Determinations made $271m Equivalent of for 58 research projects for 317 projects 60 CO2-e abated CFI projects approved Biodiversity Fund Equal to 200,000 Action on the Ground Cars off the road 683,100 $2.8m 10 $25.2m for 5projects Methodology proposals under consideration For 59 projects Indigenous Carbon Farming Fund Research & Development ACUUs issued
The Australian Government’s response to climate change includes opportunities for the land sector The Australian Government’s plan to reduce carbon dioxide and other harmful greenhouse gases in the atmosphere and to transition to a Clean Energy Future provides farmers and land managers with the opportunity to: Improve productivity Earn carbon credits Reduce costs Environmental plantings Bullock Hills property reducing soil erosion and dryland salinity, improving the health of the Hopkins River. The trees create biodiversity benefits and shelter for livestock. More than 300,000 carbon credits have been issued to the landfill sector for abatement achieved under eligible offsets projects under the Carbon Farming Initiative. Manure from the Blantyre Farm’s 22,000 pigs are generating more than enough clean energy to power the entire property and the farm no longer pays a cent for electricity.
What abatement do we expect to achieve in the land sector through the Carbon Farming Initiative? 2012 – Department of Climate Change and Energy Efficiency – Australia’s Emissions Projections
CFI-many returns? Estimates of higher carbon price needed? Opportunity and transaction costs = barriers to CFI uptake • Some prospective technologies and practices prospective (early feedlot finishing) • Partnership with industry • Potential for aggregation to reduce costs • Dairy feed supplementation • Productivity and other co-benefits • Learning by doing
Methodology Development • Technical Working Groups on • reforestation, forest management and native forest protection • savanna fire management • landfill gas recovery • manure management • management of methane from livestock, and • soil carbon and biochar.
Development of Agricultural Methodologies Indicative timeline for submission to DOIC