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

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  • 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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