Over the last few weeks, Carbon Farmers of Australia has been developing a unique offering in the carbon trading space. We have worked for 7 years straight with the one aim of ‘seeing carbon traded and farmers paid fairly for what they grow’. Now its time to bring this to reality. We exist to empower farmers to make their carbon decisions from a position of knowledge and independence.
We de-mystify the Carbon Farming Initiative and trading in carbon credits so all can participate. The principles which drive our business model are as follows:
- Carbon Trading should be accessible for ALL farmers – We offer Plain English training farmers can understand.
- Farmers should be able to maintain their carbon right and sell to whom they wish, when they wish. Or indeed bank them.
- All dealings should be transparent and follow ethical disclosure guidelines – for example, in costs which will be incurred.
- Compliance in this new market is complex, and needs to be managed. Carbon Farmers of Australia
- will offer a service to manage compliance while the farmer will maintain their carbon right.
- Knowledge of the system builds the infrastructure for farmer innovation – Carbon Farmers of Australia
- encourages full knowledge to facilitate innovation.
- Small and large landholders should have the same opportunities.
- Marketing to Regional customers is encouraged – Keeping as much money in the Regional areas as possible. Many people and companies will be interested in supporting their local farmers. Localism relates to carbon as well.
- We are committed to keeping our farmers in touch and informed with the latest information and breaking news.
Getting Started with the Carbon Farming Initiative
Is my tree planting compliant with the Government’s methodology? Can I make any money from tree planting?
The first broadly available methodology is a tree planting method. But how do you make sure your place is eligible, and then how do you figure out if there is enough potential carbon credits in it to make it worthwhile? How big does your area need to be? Do you have to hand over your carbon rights to someone else?
We can help
We are offering a three stage approach and our fee for service approach ensures that you remain in control of your carbon right. We hold the appropriate interim Australian Financial Services Licence to enable us to assist you in these ways. Contact us for more information.
Why Trade Carbon?
The reason why governments choose trading over taxing to meet environmental goals is fourfold:
- Polluters pay.
- The financial resources flow into the businesses that are innovating new, low emissions technology and practices.
- The profit motive is universally attractive and is a flexible incentive.
- It can engage a large number of businesses in changing practices quickly.
Trading in soil carbon offsets or credits has many co-benefits beside the capture and storage of carbon: These benefits of soil carbon include less erosion, better soil structure, better water retention, higher levels of nutrient availability, and potentially higher production. Healthy soils mean healthier food and healthier people. There are also environmental benefits, such as greater biodiversity.
Growing and trading farm-based offsets is like growing and trading any other commodity. The Grower decides which produce they will grow, they grow to a standard, they choose an agent, and deliver as agreed. They use financial instruments such as futures contracts and insurance to manage risk. They use pooling to spread risk.
When trading in a new commodity, the most important risk management tool is knowledge or applied information. Carbon Farmers of Australia provides the information growers need to enjoy safe, ethical farm offsets trading. Contact us to find out how we can help you get started.
Carbon Farmers of Australia offers Growers advice based on long experience in the soil carbon and carbon farming industries. CFA offers advice on Trading, Programs, Contracts, Suppliers, and Carbon Farming.
This advice is delivered via a variety of channels, such as workshops and seminars, email and blogs, newsletters and magazines, face-to-face and telephone.
CFA has access to practice experts from every major field of trading and Carbon Farming. This knowledge can be applied to your project.
CFA uses proprietary planning models to assist growers to make decisions about Carbon Farming and Trading. The Soil Carbon Optimising Tool (SCOT) which takes a step by step approach to the major categories or levels in building a Carbon Farm Plan. For sizing up a trading proposal, we have the Farm Carbon Trading Risk/Return Calculator which enables the Grower to assess price per tonne against volumes per hectare and conditions of the contract.
For more information on our advisory services please contact us.
Most Growers usually cannot put together a 25,000 tonne parcel of units which is the smallest tradable amount on most exchanges. The role of the ‘aggregator’ is to assemble tradable amounts by combining units from several Growers.
CFA offers Aggregation Services for Growers wishing to enter the widest range of markets. These services include registration, pool management, insurance, dispute resolution, and price advice.
We are developing protocols, standards and contracting options. A carbon sequestration project planning handbook is being prepared. And we are open to entering into listing agreements at any time.
Where possible, we will accommodate sub-aggregation of growers on small properties. Contact us for more information.
Safe & Ethical
Carbon Farmers of Australia helps make trading offsets safe, ethical by dealing only with trading programs that are structured to benefit the interests of the grower. After fighting for 5 years to win the right for growers to trade farm offsets, CFA has a track record of support for farmers.
Here are some hints for how to tell if a program is farmer-friendly
Safe Offsets Trading
Farmer-friendly trading programs use “buffer pools” which spread the risk across groups of growers. The Grower deposites a number of units in the pool when delivering units for sale. If a Grower loses Carbon for any reason apart from intentional emissions, the loss is made up from the pool. As the pool is made up from growers who are scattered across the continent, the risk is spread across many climate zones. This acts as a form of risk management favouring the buyer – a form of insurance for both grower and buyer.
Ethical Offsets Trading
Many Growers don’t like the idea of offsets created by them could be traded by speculators at many times the original value. Some programs prevent this by ‘retiring’ the units on the first trade. Retirement means taking the units off the register for trading. The capability of a unit to retain and increase its value – as demonstrated by market activity – is known as its “fungibility”.
For more information on our committment to ethical carbon trading, please contact us.