Who will buy your carbon credits?

September 30, 2019 saucedesign

who-will-buy-your-carbon-credits

 

Following on from last week where we explained that the ‘Powers that be’ are interested in encouraging Supply of Carbon Credits, I’ve been asked, “But who will buy?” “What’s the Demand like?”

First, I thought I’d re-cap a couple of things

The EMISSIONS REDUCTION FUND (ERF) has been re-badged

(Reported last week) – We are now working under the ‘Climate Solutions Fund’ which expands on the ERF – see the official site.

In practical terms, for those starting/investigating and engaging with the Carbon Farming methods such as Tree Plantings, Soil carbon increase, forest regrowth etc, NOTHING changes.

We are all moving forward starting Projects which can earn a Carbon Credit. To start yours, get in touch.

Farmers are the backbone of this Carbon Farming Market – Farmers can be THE main supply now.

However, as I’ve said before, there are other industries starting out – big Industrial guys who can gain a credit from reducing emissions – so Farmers need to keep engaging.

So, what about the demand side – who will buy?

At the conference we took a good look at the Demand side. Justin Glass did a great job of showing that Demand and Prices are expected to rise (take a look at his slides).

Certainly my recent experience correlates to this also – spot prices only yesterday for volumes up to 20,000 ACCUs were going for $16.10. This is up from $14.90 just after the election in May – only months ago!

Buyers are contacting me for Supply of Credits – Demand is there. I wish I had more!

The Government is, of course, still an active buyer via the ERF/CSF reverse auctions. When the next one will be is unsure, but it’s a good source of demand if you want price certainty AND a forward delivery contract.

Will demand disappear? Well, I don’t know about you, but with all the talk about climate change at the moment, I don’t think the topic is going away – do you?

AND where will their required emissions reductions come from? My considered opinion is that there will be HUGE demand – but you do need to do your own research on that.

And if by putting in a project you are also improving your shade and shelter, or the water holding capacity and structure of the soils, the risk is surely lowered also.

CONCLUSION: Have no Fear! Go Forth and Create Credits

(after doing your due diligence of course!)

Supply of Australian Carbon Credits Units ACCUs is LOW at the moment – many Farmers have their future supply locked up in contracts with the Government. If you were ready to Supply credits today, you would have no trouble offloading quantities of 10-25,000 Tons.

Future demand will be high we believe, as more people are convinced to take action – companies with shareholders, households and governments will all need to ramp up their efforts.

But there is no time to waste – it takes time to get Registered, test soil, plant trees, start your ‘new’ activity. And increase the carbon in trees/soils.

When doing your investigations, don’t forget to ask questions like:

  • Can I do more than one method on my farm?
  • Get two new income pathways?
  • Extend the time I get an income?
  • How Farmer friendly can the project be?

So, to ask any questions or get your ‘whole of farm’ carbon audit opinion from the experts at Carbon Farmers of Australia – click here!

I’m also always up for a chat, so don’t hesitate to pick up the phone either – keep asking questions, getting costs, figuring out your Carbon Farming Journey…

Onwards!

 


 

Not sure what a project might look like for you?
Read about the 5 most popular carbon farming methods!

 

 

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