Well, that was interesting… The ‘Covid’ isolation time, I mean.
Not that it’s over and done with yet!!
So, how is Carbon Farming and Trade travelling in this era?
Let me show you!
Well, the SECOND Trade in Soil Carbon Credits occurred – another FIRST for Australia/the world.
AND the First Soil Carbon Project for Tasmania was announced.
Internationally, NEW Soil Carbon methods are being put forward – the world is starting to understand the SIZE and importance of this ‘carbon sink’.
This method, when approved would open an International Voluntary Market to Farmers (Australian Credits cannot be sold overseas right now). Take a look.
IMAGINE: on one farm you could have two soil projects – one earning an ‘Australian Credit’ which currently can’t be sold overseas and one earning an ‘International Credit’ which can.
WHO WOULD HAVE THOUGHT? The important thing about this is – ‘THEY’ (the faceless ‘they’) said we would NEVER do such a thing. Despite that, we see the EVOLUTION OF METHODS. If you build it, they will come.
Soil Carbon Industry
The Soil Carbon Industry Group (SCIG) is being formed here in Australia to bring improvements in the Soil Carbon method to Government AND share ideas and experiences to expand the knowledge base.
CFA is part of this group and will bring news of how YOU can be a part of this conversation soon.
If you have any other soil carbon or other carbon news, please feel free to let me know. Many Farmers are interested; we just need to ‘keep on keeping on’ to make this mainstream for Farmers.
To remind us, the weighted average Carbon Price at the last Government ERF Auction was $16.14 per tonne in March.
In the intervening months, with the COVID interruptions, we have seen price on the Secondary Market dip. But lately around 15,000 tonnes has sold at $15.75. So it’s not dead at all, but smaller volumes may be the name of the game.
Also, many of those with Government contracts are filling that contract as ACCUs become available in the face of recent uncertainties. ‘Bird in the hand’ and all that 🙂
Do we have one? Does it matter?
Officially, the answer is YES, we have one – after all, we are signed up to the Paris Agreement, right? In which we have promised to reduce emissions to 26-28 per cent on 2005 levels by 2030.
The questions are:
- Is this contribution enough to keep the global average temperature to 1.5 degree increase which is aspirational under the Agreement? Or even 2 degrees?
- Will Australia meet the target? If so, will they use the ‘controversial’ Kyoto era over-achievement in reductions?
As always, I’ll leave the politics to others.
Here’s what I know as an industry participant:
For projects which have already been registered and are going, its ‘business as usual’. Trees are still growing; soil is improving, and the Government NEEDS these projects to show that indeed emissions are being reduced (leaving aside the discussion on – ‘is it enough’).
NEW projects can continue to be registered. The CER staff worked externally for a period and are gradually getting back to normal.
So it’s FULL STEAM AHEAD on getting new projects registered.
Go for it!
Lastly – there is more competition for ERF/Climate Solutions Fund coming.
The Government is under pressure to include new solutions like Carbon Capture and Storage and others to the ERF list.
While that may take time, it serves to warn us to MAKE HAY WHILE THE SUN SHINES. i.e. If you think you have a project under the current methods, get in touch with a Project Developer or trusted advisor to ask:
“Is my farm able to mount a Carbon Project?”
If you don’t ask, you’ll never know.
As always, I’m happy to have a chat and give information on the above – and others are out there as well…
Is Carbon Farming & Trading right for you?