The Carbon Farming InitiativeThe Carbon Farming … Carbon Farming InitiativeThe Carbon Farming Initiative Eliza Murray Australian Government Department of Climate Change and Energy

The Carbon Farming InitiativeThe Carbon Farming Initiative

Eliza MurrayAustralian Government Department of Climate Change and Energy Efficiency

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Climate change and agriculture in Australiain Australia• Agriculture and forestry generate around

18% of Australia’s emissions18% of Australia s emissions

• Carbon price from 1 July 2012A i lt t– Agriculture exempt

• Landholders can receive CFI credits for:– Reducing emissions from agriculture

– Increasing carbon in soils and vegetation

• Credits can be sold to people and businesses wishing to offset their emissions

Types of projects• Reforestation

• Revegetation

• Rangelands restoration

• Savanna fire

yp p j

• Revegetation

• Soil carbon

• Native forest protection

• Savanna fire management

• Livestock management• Native forest protection

• Managed regrowth forests

g

• Fertiliser management

• Manure managementg

auscarbon

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Design of the CFI

• Legislation passed in August 2011

• Independent Administrator established December 2011

• Monitoring, reporting and verification

– Project crediting ex postj g p

– Administrator can compel audits

• Measures to prevent fraud and misconduct• Measures to prevent fraud and misconduct

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AdditionalAdditionalAdditionalAdditional

PermanentPermanentSupported by

peer-reviewed Supported by

peer-reviewed sciencescience

Integrity PrinciplesIntegrity

PrinciplesLeakage

avoidanceLeakage

avoidanceInternationally consistent

Internationally consistent avoidanceavoidancey consistenty consistent

MeasurableMeasurableConservativeConservative

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Offsets Methodologies • Developed by government and non-

government g

• Assessed by Domestic Offsets Integrity Committee (DOIC) ( )

– Public consultation

– Makes recommendations to Minister

• Approved by Minister

• Legislative instruments

Additionality• Regulatory additionality test

• Positive listPositive list– Activities that go beyond common business

practice

• Baselines

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Permanence obligations

• Maintain carbon or hand back credits

• Re establish carbon after a fire or drought• Re-establish carbon after a fire or drought

• Risk of reversal buffert l hil t b i t bli h d– temporary losses whilst carbon is re-established

– wrong doing that can’t be remedied.

C b i t bli ti• Carbon maintenance obligation

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Avoiding adverse impactsAvoiding adverse impacts

• ‘Negative’ list

– Projects that risk significant adverse impacts for water, biodiversity, local communities or employmentcommunities or employment.

• Must meet environment, planning and water requirementsrequirements

• Consider regional NRM plans

• Co-benefit index – biodiversity, indigenous communities

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L d S t C b d Bi di it Ad i B dLand Sector Carbon and Biodiversity Advisory Board

Regional NRMRegional NRM Planning for

Climate Change

Carbon Farming Futures

Indigenous Carbon

Farming Fund

Carbon Farming Skills

CFI Non-Kyoto Carbon Fund

Biodiversity Fund

Further information:

www.climatechange.gov.au/cfi

[email protected]

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Extra graphics for Q&A

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Carbon storage potential

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Permanence obligations

250

200

100

150

Carb

on

50

0

0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 100

Credits issued (cumulative) Carbon stored (cumulative)

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Credits issued (cumulative) Carbon stored (cumulative)

15Source: CSIRO 2009

Common practice test

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Scheme mechanics

Methodology Approval

Project Approval

Reporting and verification

Crediting and trading

Termination or Transfer of

Projects

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Markets for credits

Kyoto projects Non-Kyoto projectsSELLERS

Carbon price mechanism

2012

International compliance

market

Voluntary markets

Non-Kyoto fund

2013

BUYERS

2012 2013

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CFI and carbon price mechanismCFI and carbon price mechanism

• Entities can meet carbon price obligations ith K t li ibl CFI itwith Kyoto eligible CFI permits

• CFI carbon credits are called ‘Australian C b C dit U it ’ (ACCU )Carbon Credit Units’ (ACCUs)

– 1 ACCU = 1 tonne of abatement

• Up to 5% fixed price period: 2012 - 2015

• Uncapped in floating priceUncapped in floating price

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Links to Australia's national accountsLinks to Australia s national accounts

• Measurement and estimation must be consistent with national accounts

– UNFCCC reporting guidelines

– IPCC Good Practice guidance

• Verified site specific data will feed into national accounts as part of continuous improvementaccounts as part of continuous improvement

• Step-wise process for new estimation approaches

• CFI abatement subject to UNFCCC ERT

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