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 Australias 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 cant 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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