The Carbon Farming Knowledge Project involves a series of workshops for 30 independent
agricultural advisers across south-east Australia to increase their knowledge of carbon in farming
systems. It is helping them to prepare their clients for potential environmental, economic and social
benefits of carbon management policy, such as the Carbon Farming Initiative, where farmers can
earn credits for storing carbon or reducing greenhouse gas emissions on their properties.
Session 3: Evaluating CFI reforestation options in dryland farming areas
Summary of August 2014 workshop presentation by Jencie McRobert, RMCG Bendigo
Why is it important?
There are a number of benefits in considering trees for carbon sequestration. Trees and plants are often called
‘the lungs of the planet’ and provide food, wood, biodiversity, soil and water improvements. As they grow trees
remove CO2 from the atmosphere through photosynthesis and release oxygen. There can be productivity benefits
of on-farm of planting trees, such as provision of shade, reducing wind and water erosion and protection of
livestock from cold and hot winds.
Background
Implementing a Carbon Farming Initiative by using an approved methodology can provide credits for practices
that reduce the volume of greenhouse gases entering the atmosphere. One recognised practice is revegetation –
not solely forestry type trees but native vegetation too. However many farmers believe incorporating trees into
their business is complicated in terms of:
- Uncertainty around government policy and its continuation in future.
- Long-term commitment of land to planting.
- Difficulties in getting started and the high establishment and management costs.
- Inexact growth rates estimations because of modelled versus measured sequestration (see more
below).
- Uncertainty regarding the carbon price or income received for credits.
- High transaction and compliance costs.
- Lengthy and uncertain payback periods.
- Planning permit requirements and approvals.
- Water interception issues in some catchments.
Decision-making factors for carbon sequestration
Despite these concerns, there are many farmers who want to revegetate their properties. Their decisions are
being influenced by what works best on their property and the economics of revegetation for their business.
 Methodologies
There are six Carbon Farming Initiative methodologies for revegetation, each of which describe a set of rules,
which when applied will abate or offset greenhouse gas emissions and generate Australian Carbon Credit Units
(ACCU’s) under the Carbon Farming Initiative. Private applicants and industry associations as well as government
agencies may develop further methodologies in the future.
There are three ‘types’ of methodologies under the forestation category (see Useful Resources for more info):
- Revegetation – environmental plantings, reforestation and afforestation, and permanent Mallee
plantings.
- Regeneration and regrowth – native forest from managed regrowth and human-induced
regeneration of a permanent even-aged native forest.
- Avoided deforestation – native forest protection (not relevant to SA and Victoria).
 Choosing a CFI methodology
To earn ACCUs a farmer must use a CFI methodology. Which one they select may depend on their circumstances
and personal preferences. Land use factors may be important, such as previous forest cover, clearing and
regeneration history, rainfall and water interception or regulatory issues. Some farmers may have a preference
for regeneration instead of re-establishment of plants, particular plant species, modelled versus measured
approach for accounting for carbon credits or specific management requirements. Change in carbon storage
levels are affected by the rate of inputs (growth) and outputs (decomposition and disturbance).
 Measured versus modelled
There are two ways to track sequestration – either ‘measured’ or ‘modelled’. Measuring requires physically
quantifying the volume of carbon being sequestered but the equipment and practice is expensive and it is a
specialist skill. Modelling the amount of carbon sequestered, using approved modelling tools accompanying a
suitable methodology, is based on science and is generally cheaper. However, it gives a more conservative
estimation of carbon actually sequestered, and is likely to generate fewer carbon credits for a given project.
Policy changes
In June 2014, the Australian
Government put forward
plans for an Emissions
Reduction Fund designed to
make carbon sequestration
projects more accessible.
While the policy details of
the fund are still being
developed, there are plans
to relax the rules. This
includes simplified
methodologies and
streamlined reporting,
reducing the costs and
approvals to register a
project and a slackening of the permanency rule. The 100 year permanence obligation has been relaxed to 25
years, however the value of the ACCUs is reduced if this option is taken up. This means that instead of projects
involving tree plantings for 100 years and measuring the cumulative carbon stored over time (see bottom graph),
they may only run for 25 years, to reflect annual carbon capture (top graph). There are about 75 registered
Carbon Farming Initiative projects in south-east Australia at present. About 60 are forestry projects but only a few
have already received credits for sequestering carbon
Useful resources
SA Department of Natural Resources Carbon from Revegetation –
www.environment.sa.gov.au/Science/Science_research/land-condition-sustainable-management/carbon-from-revegetation
Australian Government methodologies – www.climatechange.gov.au/reducing-carbon/carbon-farminginitiative/methodologies/methodology-determinations
The Carbon Farming Initiative – www.mycfi.com.au
Building Farmer and Advisor Knowledge in Carbon Farming Project – www.carbonfarmingknowledge.com.au
More information:
Jencie McRobert, 0427 679 038, jenciem@rmcg.com.au
www.carbonfarmingknowledge.com.au
This project is supported with funding from the Australian Government