Land Sector Carbon and Biodiversity Board Annual Report 2011–12 Land Sector Carbon and Biodiversity Board Annual Report 2011–12 Related information is available at: www.environment.gov.au/cleanenergyfuture © Commonwealth of Australia 2012 With the exception of the Commonwealth Coat of Arms all material presented in this document under a Creative Commons Attribution 3.0 Australia Licence. IMAGES: Cover: Burning—Bruce Rose Farm gate—Andrew Tatnell Eucalypt sapling—Andrew Tatnell Aerial of tropical wetlands—Australian Heritage Commission Indigenous hands and seeds—Steve Strike Wheat paddock—Michael Marriott Sunset—Allan Fox Yellow Water Lagoon—John Baker Page icons: Sunset over the South Alligator River—John Baker Peppermint box woodland on private land, Murray Bridge—Andrew Tatnell Board: Bob Debus, Lesley Hughes, David Crombie, Joe Ross–Andy Heaney Anna Skarbek—Anna Skarbek Internal images: Page 7: Booderee National Park—John Houldsworth Page 9: Overview of property showing water corridor through the cropping area—Lyle Radford Page 10: Healthy growth of Cabbage Tree palms in area cleared of Lantana—John Baker Page 11: Sunset over the ancient landforms of the Kununurra region—Michelle McAulay Page 15: Saltspoon Daisies, Uluru-Kata Tjuta National Park—Director of National Parks Page 17: Blue knob, NSW—Suze McLeod Page 18: Large areas to be direct seeded—Graham Gates Page 23: Wetlands with paperbarks and water lilies, Yellow Water Lagoon—John Baker Page 25: Box gum grassy woodland on the property of the Job family, near Yeoval—Andrew Tatnell Page 26: Wildflowers at Mount Hotham—Trevor Ierino Page 27: On the way to the milking shed, near Cohuna—Cecilia Burke LETTER OF TRANSMITTAL The Hon Tony Burke MP Minister for Sustainability, Environment, Water, Population and Communities PO Box 6022 House of Representatives Parliament House CANBERRA ACT 2600 Dear Minister I present the Annual Report of the Land Sector Carbon and Biodiversity Board for the year ending 30 June 2012. As required by section 81 of the Climate Change Authority Act 2011 (the Act), the report has been prepared in accordance with the Guidelines for the Presentation of Documents to the Parliament provided by the Department of Prime Minister and Cabinet. I am pleased that the report notes great progress during the year in the implementation of measures under the Land Sector Package of the Clean Energy Future Plan. Under subsection 81(1) of the Act you are required to table a copy of the Annual Report in each House of Parliament. I would like to recognise the contribution of each of the Board members in providing advice to you and the Australian Government in relation to the implementation of the Land Sector Package. We are pleased with the success to date. I also take this opportunity to acknowledge the dedication of staff of the Departments of Climate Change and Energy Efficiency, Agriculture, Fisheries and Forestry, and Sustainability, Environment, Water, Population and Communities for their professional and collaborative approach to the establishment of the Land Sector Package. Yours sincerely The Hon Robert Debus AM Chair, Land Sector Carbon and Biodiversity Board 18 September 2012 CONTENTS LETTER OF TRANSMITTAL 1 REPORT FROM THE CHAIR 4 MEMBERSHIP OF THE BOARD 6 MILESTONES 2011–12 8 LAND SECTOR PACKAGE 12 PERFORMANCE INDICATORS 14 LAND SECTOR PACKAGE MEASURES 16 STRATEGIC PRIORITIES FOR 2012–13 28 CALENDAR 29 REPORT FROM THE CHAIR I am pleased to present the 2011–12 Annual Report for the Land Sector Carbon and Biodiversity Board (the Board). The Ministers responsible for implementation of the Land Sector Package are the Minister for Sustainability, Environment, Water, Population and Communities, the Minister for Agriculture, Fisheries and Forestry, and the Minister for Climate Change and Energy Efficiency. The 2011–12 financial year saw the announcement of the Clean Energy Future Plan including commencement of the Climate Change Authority Act 2011 and the establishment and inaugural meeting of the Land Sector Carbon and Biodiversity Board. This report highlights the milestones of the first year of implementation of the Land Sector Package including the awarding of more than $340 million in grants through initial rounds of the Biodiversity Fund and components of the Carbon Farming Futures program. The first meeting of the Board was held in Canberra on 28 November 2011. The Board met as an interim board pending royal assent of the Climate Change Authority Act 2011 which was granted on 29 November 2011. Between 28 November 2011 and 30 June 2012, the Board met three times. The Board’s role is to: advise the Minister/s on implementation, performance indicators and priorities for research in relation to the Land Sector Package; advise the Minister for Sustainability, Environment, Water, Population and Communities on implementation, performance indicators and guidelines for the Biodiversity Fund; and provide guidance on the implementation of the Land Sector Package. Across the breadth of the Land Sector Package approximately $1.7 billion will be invested in seven interacting measures (Figure 1) to help ensure the protection of Australia’s ecosystems and increase resilience to the impacts of climate change. The measures will assist industry, land managers, farmers and the community to develop skills, expertise and undertake activities to store carbon in the landscape and reduce greenhouse gas emissions. Figure 1. Land Sector Package (For more details see p12–13) Taken as a whole, the package is designed to foster partnerships across Australia between private and public land managers of all kinds for the purpose of improving the capacity of the landscape to respond to climate change. It is aligned with other existing Australian government priorities such as the National Wildlife Corridors Plan. I am pleased that the Board has overseen a successful first year of implementation of the Land Sector Package and has had an opportunity to help shape the measures which will ultimately contribute to a more resilient Australian landscape. The Hon Robert Debus AM Chair, Land Sector Carbon and Biodiversity Board 18 September 2012 MEMBERSHIP OF THE BOARD The Land Sector Carbon and Biodiversity Board is an independent advisory body which reports to the Minister for Sustainability, Environment, Water, Population and Communities. The Board consists of a Chair and four members. Members are jointly appointed by the Minister for Sustainability, Environment, Water, Population and Communities and the Minister for Agriculture, Fisheries and Forestry, in consultation with the Minister for Climate Change and Energy Efficiency. Members are appointed based on their knowledge and experience in fields relevant to the Board’s functions. The Board comprises: The Hon Robert Debus AM (Chair) Mr Robert Debus has expertise in environmental policy, governance and law. A former State and Australian Government Minister, Mr Debus is the Independent Chair of the National Wildlife Corridors Plan Advisory Group that assisted with the development of the Australian Government’s National Wildlife Corridors Plan. Professor Lesley Hughes Prof Lesley Hughes is an expert in the impacts of climate change on species and ecosystems. She is a professorial fellow with the Department of Biological Sciences, Macquarie University, a commissioner on the Climate Commission, and a lead author on the IPCC fourth and fifth assessment reports. Mr David Crombie Mr David Crombie is a Director of GRM International, Australian Agricultural Company, Alliance Aviation Services and Foodbank (Queensland) and is a Commissioner of the Australian Centre for International Agricultural Research. He was formerly President of the National Farmers Federation, Chairman of Meat and Livestock Australia and Chairman of the Australian Rural Leadership Foundation. Mr Joe Ross Mr Joe Ross is the former Chair of the Northern Australia Land and Water Taskforce. He is a member of the Bunuba people in the Kimberley region of Western Australia. Joe has been prominent in facilitating the development of the National Indigenous Climate Change Project. Ms Anna Skarbek Ms Anna Skarbek is the Executive Director of Climate Works Australia, and is a director of the Clean Energy Finance Corporation, the Carbon Market Institute, the Sustainable Melbourne Fund and the Thermometer Foundation for Social Research on Climate Change. MILESTONES 2011–12 Date Milestones November 2011 Royal assent of the Climate Change Authority Act 2011. Appointment of members to the Board by the Minister for Sustainability, Environment, Water, Population and Communities and the Minister for Agriculture, Fisheries and Forestry in consultation with the Minister for Climate Change and Energy Efficiency. Inaugural meeting of the Board held in Canberra. Minister for Agriculture, Fisheries and Forestry launches Filling the Research Gap Round One, and Action on the Ground Round One under the Carbon Farming Futures program. December 2011 Minister for Sustainability, Environment, Water, Population and Communities launches Biodiversity Fund Round One. Carbon Farming Initiative commenced operation. March 2012 Second meeting of the Board held in Canberra. April 2012 The Chair of the Board presented on the Land Sector Package at the Natural Resource Management Knowledge Conference in Adelaide. May 2012 Minister for Sustainability, Environment, Water, Population and Communities announces 317* successful projects for Biodiversity Fund Round One. Minister for Agriculture, Fisheries and Forestry announces 117 successful projects for Carbon Farming Futures Filling the Research Gap Round One, and Action on the Ground Round One. Third meeting of the Board held in Canberra. * Note: Of the 317 projects announced by the Minister for Sustainability, Environment, Water, Population and Communities, 313 projects are proceeding. The 2011–12 financial year was a significant period in the commencement of implementation and delivery of the Land Sector Package. The establishment of the Land Sector Carbon and Biodiversity Board (the Board) under the Climate Change Authority Act 2011 (the Act) saw the exciting start to three of the Land Sector Package measures, and the opportunity to provide advice on a number of measures commencing in 2012–13. A number of major initiatives commenced in 2011–12: the Biodiversity Fund and the Filling the Research Gap and Action on the Ground components of the Carbon Farming Futures program, delivering inaugural rounds across the three streams of activity. The Board contributed to the deliberations on the outcomes of the first round of the Biodiversity Fund which has provided grants to 313 projects to the value of $271 million. These projects collectively have the potential to substantially increase the size of habitat areas for a range of species around the country, provide greater connectivity between them, reduce and manage the threats of invasive plants and animals, and improve ecosystem services. The Biodiversity Fund projects will provide significant opportunities for landscape resilience and make a considerable contribution to Australia’s transition to a clean energy future through: improved connectivity within the landscape; revegetation, and management and enhancement of existing biodiverse carbon stores across significant tracts of land; enhanced biodiversity conservation outcomes for key areas of high conservation value, for example by restoring and connecting remnant areas of vegetation adjacent to existing key assets such as Ramsar sites, World Heritage Areas and National Reserve System areas; long-term management of large parcels of land, providing longevity of outcomes for biodiversity conservation. The first round of the Filling the Research Gap program has provided multi-year grants to 58 projects to the value of $47.3 million to support research into emerging abatement technologies, strategies and innovative management practices that reduce greenhouse gas emissions from the land sector, sequester carbon and enhance sustainable agricultural practices. The first round of the Action on the Ground program has provided multi-year grants to 59 projects to the value of $25.2 million that are supporting more than 420 farmers from across the county to trial on-farm practices and technologies to demonstrate how farmers can reduce agricultural greenhouse gas emissions or increase the sequestration of carbon in soil on their properties. These round one Filling the Research Gap and Action on the Ground projects cover a broad range of farming practices and climatic and geographic conditions associated with the dairy, livestock (grazing and feedlot industries), horticulture and cropping industries and will help farmers become more sustainable and resilient. The funding for these projects is an investment in the future of Australia’s agricultural sector. The Board has discussed how potential opportunities provided by the funding of these projects may improve biodiversity conservation into the future. Options for facilitating information exchange will continue to be explored such as knowledgesharing best practice techniques and activities, and contributing lessons learned. The Board provided advice on the implementation of the Indigenous Carbon Farming Fund, Regional Natural Resource Management Planning for Climate Change Fund (Stream one and two) and the Methodology Development program. Each of these measures is due to commence in the 2012–13 financial year. More information about each of the Land Sector Package measures is detailed further in this Annual Report. Land Sector Carbon and Biodiversity Board Funding: $4.4 million over 6 years Administered by: Department of Sustainability, Environment, Water, Population and Communities Carbon Farming Futures Funding: $429 million over 6 years (DAFF, DCCEE & ATO) 2011–12 Financial Year (Administered): $ 27.3 million (DAFF & DCCEE) Nil (ATO) Administered by: Department of Agriculture, Fisheries and Forestry; Department of Climate Change and Energy Efficiency; Australian Taxation Office Biodiversiy Fund Funding: $946.2 million over 6 years 2011–12 Financial Year (Administered): $31.2 million (Note: $271 million in total committed to Round One projects up to 2016–17) Administered by: Department of Sustainability, Environment, Water, Population and Communities Indigenous Carbon Farming Fund Funding: $22.3 million over 5 years; 17.1 million over 5 years (SEWPaC); $5.2 million over 5 years (DCCEE) 2011–12 Financial Year (Administered): Nil Administered by: Capacity Building and Business Support Stream — Department of Sustainability, Environment, Water, Population and Communities; Research and Development Stream—Department of Climate Change and Energy Efficiency Regional Natural Resource Management Planning for Climate Change Fund Carbon Farming Skills CFI Non-Kyoto Carbon Fund Funding: $43.9 million over 5 years; $28.9 million over 5 years (SEWPaC); $15 million over 4 years (DCCEE) Funding: $4.2 million over 5 years Funding: $250 million over 6 years 2011–12 Financial Year (Administered): Nil 2011–12 Financial Year (Administered): Nil 2011–12 Financial Year (Administered): Nil Administered by: Department of Climate Change and Energy Efficiency Administered by: Department of Climate Change and Energy Efficiency Administered by: Stream 1—Department of Sustainability, Environment, Water, Population and Communities; Stream 2—Department of Climate Change and Energy Efficiency KEY ACHIEVEMENTS: KEY ACHIEVEMENTS: Filling the Research Gap (DAFF): Under round one 58 projects worth $47.3 million (over four years) were announced in May 2012. The first round of the ABS Land Management Practice Survey has been developed and was sent to around 50,000 farm businesses on 6 August 2012. Under the Biodiversity Fund Round One, 313 projects worth $271 million (payable over six years) have been awarded funding*. The successful projects demonstrate the breadth of activity and innovation in the land sector with recipients undertaking to enhance biodiversity, improve resilience and increase connectivity across our landscapes. Action on the Ground (DAFF): Under round one 59 projects worth $25.2 million (over four years) were announced in May 2012. Extension and Outreach (DAFF): Development of the Extension and Outreach program delivery strategy. Delivery of 21 Carbon Farming Initiative (CFI) workshops for agricultural advisors in regional centres around Australia. Commissioned 31 case studies of potential CFI projects. Conservation Tillage Refundable Tax Offset (ATO and DAFF): On-line form for the Conservation Tillage Survey, available from 1 July 2012. Methodology Development Program (DCCEE): Funding for program implementation becomes available in 2012–13. * Note: Of the 317 projects announced by the Minister for Sustainability, Environment, Water, Population and Communities, 313 projects are proceeding. KEY ACHIEVEMENTS: Capacity Building and Business Support Stream: Funding for program implementation becomes available in 2012–13. Work has been undertaken through 2011–12 on program design and development work. Research and Development Stream: Funding for program implementation becomes available in 2012–13. KEY ACHIEVEMENTS: Stream 1: Funding for program implementation becomes available in 2012–13. Work has been undertaken through 2011–12 on program design and development work. Stream 2: Funding for program implementation becomes available in 2012–13. KEY ACHIEVEMENTS: KEY ACHIEVEMENTS: Funding for program implementation becomes available in 2012–13. Work has been undertaken through 2011–12 on program design and development work. Funding for program implementation becomes available in 2013–14. Work has been undertaken through 2011–12 on program design and development work. PERFORMANCE INDICATORS The Climate Change Authority Act 2011 gives the Board responsibility for advising Ministers on the development of performance indicators for the Land Sector Package measures. Most Land Sector Package measures will commence in 2012–13. As these programs are still under development their performance indicators have not yet been fully defined. During the course of 2012–13 performance indicators for each of the measures will be developed and agreed and reported on in the 2012–13 Annual Report. To ensure the quality of each Land Sector Package measure, both short-term and medium- to long-term indicative performance indicators are being developed. Short-term performance indicators Short-term performance indicators will reflect program development throughout the initial phase of the Land Sector Package. Short-term performance indicators will consider resources allocated, governance arrangements, scoping, schedules, risk management, and stakeholder engagement. Some short-term performance indicators of significance include: Amount and proportion of budget spent in 2011–12 and amount of future budget committed; Number of proposals received; and Number of projects funded. Medium- to long-term performance indicators Medium- to long-term performance indicators will reflect program deliverables or output indicators. These may include uptake of Land Sector Package measures, ecosystem resilience, carbon abatement and lessons learned. The indicators will seek to evaluate the performance of Land Sector Package measures in delivering the objectives of the Land Sector Package. For example, while the development of the monitoring and evaluation framework for the Biodiversity Fund will inform the further refinement of performance indicators for the measure, indicative medium- to long-term performance indicators which the Board has considered include: Extent − hectares of plants successfully established in priority areas − survival rate of plantings Condition − Connectivity − hectares of native vegetation successfully established in priority areas improved number of patches connected / kilometres of linear linkages of native vegetation in priority areas; in existing major corridors; in prospective major corridors Spread of invasive species − populations of invasive species managed in priority areas; in existing major corridors; in prospective major corridors − number of new invasive species present in priority areas LAND SECTOR PACKAGE MEASURES Biodiversity Fund FUNDING $946.2 million over six years 2011–12 FINANCIAL YEAR $31.2 million (Administered) ADMINISTERED BY Department of Sustainability, Environment, Water, Population and Communities Description of measure The Biodiversity Fund is investing around $946 million over six years to help land managers store carbon, enhance biodiversity and build greater environmental resilience across the Australian landscape. To do this, it is funding land managers to undertake activities to restore, manage, and better protect biodiversity on public and private land. It is also providing support to land managers who wish to take advantage of emerging opportunities in the new carbon market. The Biodiversity Fund is providing support to establish new carbon stores or better manage carbon stores associated with existing native habitat. Round One opened for applications on 9 December 2011 and closed on 31 January 2012. A total of 1,530 applications were received and assessed in accordance with the program guidelines. In June 2012, grants worth $271 million were awarded for 313 projects covering many regions across Australia. Monitoring and reporting The Biodiversity Fund is engaged in a process that draws on internal and external expertise to develop a framework to guide monitoring and reporting for the Biodiversity Fund. The department has engaged professional expertise to provide additional guidance in this work. Lessons Learned Round One of the Biodiversity Fund was deliberately broad in its approach and achieved its goal of maximising participation and securing innovative and varied proposals from applicants to the new program. Overall, Round One was successful in attracting proposals that supports the measure’s objectives. The Board has identified a number of areas where the investment approach could be modified in future to produce more targeted outcomes. The Board has also identified an opportunity to improve the alignment of the Biodiversity Fund with other strategic policies such as the National Wildlife Corridors Plan, to enhance delivery of Biodiversity Fund outcomes and improve landscape connectivity and resilience in a changing climate. Case study: Bringing the forest back to the farm Location: Subtropical region adjacent to Border Ranges and Great East Ranges, Queensland Funding: $2,237,000 (excluding GST) Partners: Subtropical Farm Forestry Association, Water and Carbon Group, Southern Cross University The Biodiversity Fund is providing an opportunity for farmers in subtropical Queensland to test a new business model for revegetating large parts of their land that are otherwise unused, creating biodiversity enhancements and a sustainable revenue stream through carbon credits. The project will establish 600 hectares of mixed species carbon sink forests in biodiversity corridors in the subtropical region adjacent to the World Heritage Area of the Great Eastern Ranges. The project partners see this as a pilot program with great potential to expand. They have already committed to working with 120 landholders. The project will involve field days and workshops to demonstrate the environmental and farm production benefits to landholders, as well as local employment opportunities for the rural community. Carbon forest plantings will take place progressively over the five year project period. The project also supports the outcomes being sought under the Australian Government’s National Wildlife Corridors Plan. Case study: Reconnecting native ecosystems for long-term impact Location: Coorong and Tatiara districts, South Australia Funding: $2,250,000 (excluding GST) Partners: Coorong District Council, Tatiara District Council, local landholders, South Australian and South East Natural Resource Management (NRM) Boards, South Australian Department of Planning, Transport and Infrastructure, South Australian Department of Environment, Water and Natural Resources. In South Australia, two local councils have joined forces to manage large scale biodiversity projects over five years to help land managers protect and manage native habitats. The Biodiversity Fund project will work across 1.5 million hectares, empowering landowners and the community to restore and manage fragmented habitats including remnant vegetation and native wetlands. The project will protect native vegetation and preserve high biodiversity value of the area through building knowledge and skills, and addressing ongoing problems of weeds, rabbits and other feral animals. One aspect of the project will revegetate an 8km boundary to connect two national parks, the Coorong National Park and the Martin Washpool Conservation Park and manage risks to mitigate the movement of feral animals between the national parks. Carbon Farming Futures FUNDING $429 million over six years 2011–12 FINANCIAL YEAR $27.3 million (Administered) ADMINISTERED BY Department of Agriculture, Fisheries and Forestry Department of Climate Change and Energy Efficiency Australian Taxation Office Description of measure The Carbon Farming Futures program will provide $429 million over six years. The five components of the program will ensure that advances in management practices, technologies and techniques will continue to evolve to reduce emissions while maintaining productivity. These advances will allow farmers and other land managers to benefit from the economic opportunities of the Carbon Farming Initiative (CFI) while assisting Australia in achieving its long term emission reduction target. There are five components of the Carbon Farming Futures program: Filling the Research Gap program The Filling the Research Gap program is investing around $201 million over the six years to support research into abatement technologies and practices that reduce greenhouse gas emissions from the land sector, store carbon in the landscape and enhance sustainable agricultural practices. The research outcomes will support the development of offset methodologies under the CFI. The program will build on research undertaken through the $46.2 million Climate Change Research Program (CCRP), which concluded on 30 June 2012. The new research projects will target current research gaps around abatement technologies and practices identified through the CCRP to deliver practical options for land managers and farmers. Future rounds of the Filling the Research Gap program will focus investments on research priorities identified in the Research Strategy for the Filling the Research Gap. The Board provided advice on the development of the Research Strategy for the Filling the Research Gap. Filling the Research Gap is also funding the Land Management Practice Survey conducted by the Australian Bureau of Statistics (ABS). Information from this survey will support the additionality test under the CFI. Action on the Ground program The Action on the Ground program is investing around $99 million over the six years to help land managers, farmers and industry to trial on-farm abatement management practices and technologies to demonstrate how these can reduce agricultural greenhouse gas emissions (methane and nitrous oxide) or increase and store carbon in soil. Extension and Outreach program The Extension and Outreach program is investing around $64 million over the six years to support a range of activities that will provide information and support to land mangers, farmers, and their key influencers about the CFI and land sector emissions management. To do this, investments will support extension providers—building on the CFI Communications Program, existing networks and supplementing with new services where required. The program will also fund the development of information tools and systems and additional communication resources to boost awareness and build capacity for land managers to undertake greenhouse gas mitigation practices and participate in the CFI. Conservation tillage refundable tax offset program The Australian Government is providing a 15 per cent refundable tax offset for new conservation seeding equipment purchased and installed between 1 July 2012 and 30 June 2015. Carbon Farming Initiative Methodology Development program The Methodology Development program (MDP) includes $19.6 million in funding to facilitate the development of Carbon Farming Initiative (CFI) methodologies that expand the opportunities for the participation in the CFI of land managers. This program is delivered by the Department of Climate Change and Energy Efficiency (DCCEE). Approximately $7.2 million of the MDP will be allocated to collaborative grants projects that prepare CFI methodologies. The Board provided advice to DCCEE to assist its preparation of program guidelines for this component of the MDP. DCCEE expected to finalise and release the program guidelines in early 2012–13. The balance of the MDP funding (approximately $12.4 million) will support the provision of expert advice and tools and development of methodologies by DCCEE. Lessons Learned Monitoring and evaluation of these programs is important to ensure these programs continue to deliver successful outcomes for the Australian public. The first monitoring and evaluation period for the Carbon Farming Futures programs commenced in 2011–12. Case study: Extension and Outreach program Location: National Partners: Regional Landcare Facilitators, CFI Communications Program Over the past year, Regional Landcare Facilitators (RLFs) have been talking to farmers and land managers about the CFI as part of the CFI Communications Program. This year, the Extension and Outreach program activities built on these awareness raising activities by targeting agricultural advisor groups, including agronomists, agribusiness representatives, industry associations and state governments. The program recognised a need to inform these groups and individuals about the CFI as they play an important role in delivering information to land managers. As part of the program, 21 free advisor workshops in regional centres were held between 17 May 2012 and 14 June 2012. The workshops shared information about the CFI, explored what further tools and information the advisors and their clients need and discussed how they would like to receive information in the future. They also provided a forum for participants to talk about the opportunities and challenges of implementing the CFI in their regions, to ask questions and provide feedback to the department. The information shared at these workshops will help shape the design and ongoing delivery of the Extension and Outreach program by identifying the opportunities, risks, needs and information gaps. This information will also inform communications about carbon farming and the CFI to ensure that land managers, farmers and the broader community have the knowledge and tools they need to participate and benefit from adopting these land management practices. Indigenous Carbon Farming Fund FUNDING $22.3 million over five years 2011–12 FINANCIAL YEAR Nil ADMINISTERED BY Department of Sustainability, Environment, Water, Population and Communities Department of Climate Change and Energy Efficiency Description of measure The Indigenous Carbon Farming Fund (ICFF) will provide $22.3 million over five years to support Aboriginal and Torres Strait Islander people to participate in the Carbon Farming Initiative (CFI). The Fund will be ongoing, commencing in 2012–13, and delivered in two streams: Research and Development Stream The Research and Development Stream will provide $5.2 million in grants over five years to support research to underpin Carbon Farming Initiative (CFI) methodologies and the development of tools for estimating and reporting on emissions. This stream will be delivered by the Department of Climate Change and Energy Efficiency (DCCEE). Funding under this stream will be directed towards supporting and developing low-cost methodologies likely to have high Indigenous participation to help create real and lasting opportunities for Indigenous Australians, such as savanna fire management. The Board provided advice to DCCEE to assist its preparation of program guidelines for this stream of the Indigenous Carbon Farming Fund. DCCEE expects to finalise and release the program guidelines in early 2012–13. Capacity Building and Business Support Stream Funding of $17.1 million over five years will assist Indigenous organisations and individuals to assess, design or implement carbon farming projects. Funds will be available to access carbon farming specialists and business development expertise. This may include the provision of training, assessment of project opportunities or providing advice on engagement in the CFI. It will also support the development of governance and contractual arrangements for carbon farming businesses. The CFI will enable Indigenous land managers to earn carbon credits by undertaking projects to reduce greenhouse gas emissions or store carbon on the land. Savanna fire management and environmental plantings are current methodologies approved under the CFI which may provide opportunities for Indigenous land managers. This stream will be delivered by the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC). SEWPaC expects to finalise and release the program guidelines in early 2012–13. Regional Natural Resource Management (NRM) Planning for Climate Change Fund FUNDING $43.9 million over five years 2011–12 FINANCIAL YEAR Nil ADMINISTERED BY Department of Sustainability, Environment, Water, Population and Communities Department of Climate Change and Energy Efficiency Description of measure The Regional Natural Resource Management (NRM) Planning for Climate Change Fund (the Fund) will provide $43.9 million over five years to help regional NRM organisations incorporate climate change mitigation and adaptation measures into existing regional NRM plans. Climate change will present challenges and opportunities to rural and regional communities. Effective NRM planning for climate change requires access to up-to-date climate change information at an appropriate scale and format, and the capacity to apply this information effectively. Regional NRM organisations will be supported to update existing regional NRM plans to guide planning for climate change impacts on the land and to maximise the environmental benefits of carbon farming projects. The updated plans will help to guide the location of biodiversity and carbon storage projects across the landscape to maximise the benefits for biodiversity, water and agricultural production. The Fund complements the Carbon Farming Initiative (CFI) and the Biodiversity Fund by supporting planning that will help guide the types and locations of activities under these initiatives, especially reforestation activities, the management of remnant vegetation, and to optimise the environmental, water and agricultural outcomes of CFI projects. The Fund is divided into two streams: Stream one—$28.9 million to support the 56 regional NRM organisations to revise existing regional NRM plans to incorporate climate change mitigation and adaptation approaches and help to identify where in the landscape adaptation and mitigation activities should be undertaken. Stream one of the Fund is delivered by SEWPaC. Stream one will commence in the first half of 2012–13. Stream two—$15 million for coordination of research to produce regional-level climate change information in the form of projections to support medium term regional NRM planning. Stream two will provide advice directly to NRM planners to help them determine which climate change information is the most appropriate and how to take account of uncertainty in planning for climate change. Stream two is delivered by the DCCEE. The Board provided advice to DCCEE on its proposed approach to the delivery of stream two and incorporated that advice in its design and planning processes. Stream two will commence in early 2012–13. Carbon Farming Initiative Non-Kyoto Carbon Fund FUNDING $250.2 million over six years 2011–12 FINANCIAL YEAR Nil ADMINISTERED BY Department of Climate Change and Energy Efficiency Description of measure The Australian Government has committed $250 million to purchase non-Kyoto Carbon Farming Initiative (CFI) credits that cannot be used for compliance purposes by companies with obligations under the carbon pricing mechanism. The Non-Kyoto Fund will increase incentives for activities that are not counted towards Australia’s emissions target under current international carbon accounting rules, including soil carbon and revegetation. The Fund will be delivered by DCCEE and will commence in 2013–14. DCCEE will consult with the Board on the design of the Fund during 2012–13. Carbon Farming Skills FUNDING $4.2 million over five years 2011–12 FINANCIAL YEAR Nil ADMINISTERED BY Department of Climate Change and Energy Efficiency Description of measure The Carbon Farming Skills program will ensure that landholders have access to credible, high quality advice and carbon services. It will do this through development of an accreditation scheme for key carbon service providers who operate under the Carbon Farming Initiative and a new nationally accredited qualification in carbon farming. The measure is delivered by DCCEE. Options for implementing the accreditation scheme were being considered during 2011–12 and DCCEE expects to consult with the Board and other stakeholders on the scheme’s design and development of the qualification in carbon farming in early 2012–13. STRATEGIC PRIORITIES FOR 2012–13 The Board will continue to provide advice to Ministers and relevant government agencies on the Land Sector Package to assist the Australian Government in implementing its Clean Energy Future Plan. The Board will continue to provide advice to the Ministers as required and progress work to assist implementation and delivery of the Land Sector Package including: advising on mechanisms for greater alignment between the Land Sector Package measures and application of lessons learned across programs; and engaging with stakeholders and departments to help ensure that investment occurs in activities that deliver the objectives of the Clean Energy Future plan. The financial year 2012–13 will see the Board assist in achieving a number of implementation milestones for the Package, for example: Biodiversity Fund future investments While the first round of the Biodiversity Fund was deliberately broad in its reach and application, future investments under the Biodiversity Fund may take a more thematic and/or regionally based targeted approach to deliver more specific landscape outcomes going forward. The Board will consider and provide advice on the targeting of future rounds and potential priorities for investment. Development and implementation of the Biodiversity Fund monitoring and reporting framework The Board will continue to provide advice on the development and finalisation of a monitoring and evaluation framework for the Biodiversity Fund in 2012–13. Development of performance indicators for the Land Sector Package The Board will continue to provide advice to Australian Government on the development of performance indicators for the Land Sector Package measures to inform the Board’s annual reporting to Parliament on the success of the Land Sector Package measures. CALENDAR Significant dates for the Land Sector Package Measure Dept 2011–12 2012–13 2013–14 2014–15 2015–16 2016–17 Land Sector Carbon and SEWPAC Biodiversity Board Round 1 Biodiversity Fund Round 2 SEWPAC Round 3 Round 4 Rounds 5 & 6 Claim tax offset Claim tax offset Claim tax offset on equipment on equipment on equipment purchased purchased purchased 2012–13 2013–14 2014–15 Round 2 Round 3 Round 4 (Oct 2011) Program Carbon Farming Initiative DCCEE commences Non-Kyoto Carbon Fund Program Carbon Farming Skills DCCEE commences CARBON FARMING FUTURES PROGRAM Round 1 Filling the Research Gap DAFF Round 2 Round 3 Round 2 Round 3 (Nov 2011) Round 1 Action on the Ground DAFF (Nov 2011) Extension and Outreach DAFF Round 1 Conservation Conservation Tillage DAFF & tillage survey Refundable Tax Offset ATO available Methodology Development DCCEE Round 1 Program INDIGENOUS CARBON FARMING FUND Capacity Building and SEWPAC Round 1 DCCEE Round 1 Business Support Stream Research and Development Stream REGIONAL NATURAL RESOURCE MANAGEMENT PLANNING FOR CLIMATE CHANGE FUND Stream 1 SEWPAC Round 1 Stream 2 DCCEE Round 1 Round 5