Ho Ho Ho 🎅 and a Carbon Credit Xmas 🎄to you all!
December 19, 2019 Louisa Kiely
Wow, now that was a year!
As you know, our focus is putting FARMERS at the centre of ‘Carbon Farming for Carbon Credits’.
Never forget that Farmers are the ONLY ones who have the ‘natural’ solution to taking carbon out of the air, and storing it safely in Vegetation and Soils, while improving productivity, and assisting to drought proof their farms.
This is called ‘Mitigation’ and is ESSENTIAL if the world is to keep Warming to within 1.5 or even 2 degrees.
Yes, we need to use renewable energy etc etc, but unless we take out the ‘legacy load’ (that load of CO2e which is forming the warming blanket NOW) using photosynthesis, we will NOT achieve it.
This is what drives Carbon Farmers of Australia to ensure that Farmers are at the centre of this new market.
So, what did we achieve this year?
What’s coming at us around the corner?
ACHIEVEMENTS in 2019: Just to mention a few…
- The year when Carbon Farming (aka Regenerative Farming) became more ‘mainstream’. More is understood about how Regenerative Farming stores carbon in vegetation and soils.
- More Farmers looking closely at what ‘putting in a Carbon Project’ can look like for them – diversification of income, better drought proofing and Regeneration of their Farms.
- More ‘project developers’ coming on board, with a diversification of options for Farmers – it’s not a good market if we are dominated by only a few.
- Farmers becoming more aware of how a ‘Carbon Credit’ can be used – Sell now? Save? Use as part of your succession plan?
- Importantly, more Corporate action on Climate Change – even without a national approach, the Secondary Market is improving – yes, smaller volumes, but rising. i.e. DEMAND for offsets.
- STATES with higher Targets and who are insisting that new infrastructure or other new projects are carbon neutral from day one. i.e. MORE DEMAND
- As reported the CARBON PRICE has increased from $14.90 to $17.50 in the space of 7 months. This in the Secondary Market. Easy to sell 40,000 Credits at any one time. (i.e. 40,000 tonnes of CO2e stored or not being emitted)
- Government price has also increased from around $10 to around $14. Next auction could see a further increase.
- Importantly the FIRST Soil Carbon Credits were issued and there are more to come! The Soil is the Largest Carbon Sink over which we have control (yes, I know there is drought – but the Flood is coming!)
Basically, this Market is starting to develop, the Methods are better understood, they are being improved and there is more competition in the marketplace for finding a ‘project development partner’.
WHAT’S COMING in 2020 and BEYOND: demand and more demand for Credits (in my humble opinion)
- YES, the Paris Agreement did not deliver much for the Market this time, but the DEMAND will continue to increase anyway – Corporations must respond to the ‘known threat’ of Climate Change or risk being sued. STATES are coming on board.
- Price Increases: Emissions Reduction Targets will continue to rise – it’s inevitable – the world is not doing enough to limit the temperature rises and Demand for those who have stored Carbon (i.e. earnt a Carbon Credit) will lead to continued price rises.
- The NFF is now advocating for a ‘Market Mechanism’ to reward Farmers – let’s hope it links to the Carbon Markets because that is where the DEMAND is!
Please go forth and seek out what a Project Development partner can do for you. Have you seen our ‘questions to ask’?
Please don’t wait until it rains. The Flood is coming (all droughts are generally ended with a Flood) and it takes time to Register a project – you will want to be ‘ready to go’ as soon as it rains. Get to know what YOUR project can look like. We’re happy to discuss your options with regards to Project types any time.
Want to know how things are tracking for you?
Have a fabulous Xmas and hopefully a break. There is much work to be done next year. I’m away for a while, but never far from my computer, so happy to take emails and answer your questions. If I haven’t replied to your enquiry yet, I will be getting to them ALL over the next week!!