The market’s not perfect, but we are headed to mainstream.
More than 15 years on from when we started to imagine what landholders could do to assist in combating climate change, we’ve had the first successful iteration of a ‘Carbon Market’ in Australia. Resulting in a close to $3B industry.
Not a bad start. Now, with the effects of climate change becoming more obvious, the role of what has become known as ‘Nature-Based Solutions’ is only gathering pace. Not just concerning farmers, but all solutions which involve the role that nature can play in climate mitigation and adaptation.
We are not just talking about Australia, and not just farming. Photosynthesis in the oceans. Improving biodiversity above and below ground. Let nature dictate the solutions and we’ll listen.
International opportunities are about to join the Australian system. More opportunity, more project types, and much more to learn.
As announced last newsletter, in order to explore and showcase these opportunities, we will hold the inaugural Nature-Based Solutions Conference & Expo in July 2023.
So, stay tuned if you are interested in really getting your head around all the new opportunities as they arise. Trust me, there is much to learn. The learnings will culminate in the July conference, where we will showcase all the opportunities for farmers and others.
Let’s get started!
Over the foreseeable future, the climate targets both domestically and internationally will be driven by the Paris Agreement. So, to go international, we need to understand what the ‘Paris Agreement’ will contribute.
COP27 is happening over the next two weeks as governments grapple and wrangle about who should do what. The Paris Agreement may not be perfect, but we should familiarize ourselves to be up to date. Take advantage of opportunity.
We will bring you all the important decisions, but a good start is to have a look here:
The main points for us to understand – in terms of how a carbon credit market will evolve – are:
- The highest ambition is to keep the global temperature increase to 1.5 degrees above industrial revolution levels. Given that temperatures have already increased by .8 to over 1 degree, this is a very ambitious target that would require very quick action on abatement and carbon sequestration.
- The targets are not mandatory, but many countries and companies now understand the need for action.
- ‘Article 6’ This is the part of the Agreement which talks about Voluntary cooperation/Market- and non-market-based approaches to reaching targets.
These are what we will be watching and reporting on.
To see what major steps forward could arise, take a look here: https://www.euronews.com/green/2022/10/08/what-is-cop27-everything-you-need-to-know-about-egypts-landmark-climate-conference
Many of the ‘deals’ are done on the sidelines, and with our government wanting to show the Indo Pacific nations what they are doing to assist in mitigating climate change events, we can expect some big commitments.
We already know that Australia wants to bid to host the 2026 COP! Wouldn’t that be fun.
IN OTHER NEWS:
CFA recently attended the CMI annual conference, where there is always lots of policy talk, catching up with industry colleagues and of course a few drinks.
Couple of things of note:
- We heard an update on the ‘Chubb Review’ which is where a team of experts is looking at all aspects of the Emissions Reduction Fund (ERF) and Australian Carbon Credit Units (ACCUs). This will be really important in how it affects the current and future methods. We’ll bring you updates as they happen.However, what impressed me most was when Ian Chubb acknowledged the role of ‘pulling down greenhouse gas emissions’ (not just cutting emissions). AND that photosynthesis was the only mechanism currently fully available to do this at the scale we need and in the time frame. AMAZING. The knowledge of the drawdown potential using the best natural solutions is starting to be mainstream!
- Finally, here’s a great clip that was shown at the conference. Enjoy: