Carbon Farming Initiative- Australia

Posted on January 8, 2011 by


International carbon market will open for Australian farmers and landholders.  Labor Government of Australia has started new Carbon Farming Initiative (CFI). Farmers and landholders will get opportunity to participate in lucrative international markets for carbon credits

Agriculture and forestry sector have significant role in green house gas emission. These sectors account for around 23 % of Australia’s total pollution (Australian Labor ).  The CFI will create backup information and support in implementing low-cost methods to reduce pollution in the agriculture and forestry sectors.  Government would provide rules and regulations for the generating carbon credits and made clear legislations.

As like as forestry carbon projects, farmers and land holders will bring their degraded/non productive land under the plantation and can earn carbon credits after the verification by independent auditor.

Categories covered under this program

  • Reforestation and revegetation (but only backdated to 1 July 2010)
  • Reduced methane emissions from livestock
  • Reduced fertiliser emissions
  • Manure management
  • Reduced emissions or increased sequestration in agricultural soils (soil carbon)
  • Savannah fire management
  • Avoided deforestation
  • Burning of stubble/crop residue
  • Reduced emissions from rice cultivation, and
  • Reduced emissions from landfill waste deposited before 1 July 2011.

Out of the above categories, some covered under the Kyoto Protocol.  Those projects can’t go for KP, would be covered under the National Carbon Offset Standard (NCOS) for use by Australian businesses seeking to offset voluntarily their emissions. (CFI Kyoto Credits are expected to have a higher market value than CFI non-Kyoto Credits.)

Silent features

  • Methodologies will be developed by the Department of Climate Change and Energy Efficiency and the Department of Agriculture, Fisheries and Forestry. Project proponents can develop their own project-based methodologies and send them for assessment to the concerned authority.
  • Recognised offset entities can only participate in the scheme
  • Annual reporting obligation independently audited with the costs borne by the project proponent.
  • Emission reduction should be additional to the baseline situation
  • Issuance of CFI credits after the receipt of report from Scheme administrator 
  • Permanence- Provision for risk-reversal buffer (5% of the carbon sequestered by the project)

 

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