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 Australia’s 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 can’t 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
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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