Carbon Farmers Of Australia Blog

I'm a PC and the carbon tax was my idea

Thu, 02 May 2013 06:32:00 GMT

Wow, what a great header! Wish it was mine!

But no, its another GREAT example of the Voluntary Market in action.

I've been musing about the Voluntary market, and how in my opinion we'll need a robust Voluntary market NOT dependent on Government.

So, according to 'V-Carbon News' " TJ DiCaprio, Microsoft's Senior Director of Environmental Sustainability, announced Microsoft's new wave of offset purchases at last week's REDD+ Talks in California. Microsoft has chosen to partner with The CarbonNeutral Company to invest in carbon reduction projects that preserve forests and wildlife while generating jobs and funding education. Projects supported include Terra Global Capital's VCS/CCB-verified Oddar Meanchey REDD+ project in Cambodia. A new Ecosystem Marketplace article takes a closer look into the technology giant's thinking behind its carbon offsetting strategy as part of its goal to strengthen its own operations while supporting work in developing countries". click here to read the whole story.

Now, imagine that there was a group over here, which could provide the same 'integrated' approach to a corporates needs - AND which was based in, and relied on Regional Australian generated credits and had appropriate links into education and other social networks. Wow, then we would be getting powerful for our own climate needs and long term sustainability of farmers and our landscape.

Dream on?

Voluntary Carbon Market Lesson -2

Fri, 26 Apr 2013 22:05:00 GMT

So, I promised that I'd be letting you know more about the 'Voluntary Market' and even those 'CDM type' credits the Opposition is talking about.

The best known company Internationally who approves 'methodologies' is the Verified Carbon Standard or VCS. They act in a very similar way to our Carbon FArming Initiative rules - but with many more category of credit available. They also support the CDM (Clean Development Mechanism) methodologies.

Funny enough, a perfect example of the type of credit which I understand could be available in addition to the CFI under the Oppostion crossed my desk this morning. Click here to read it all, but in essence its about the VCS approving a revision of CDM methodology AMS-III.BC, "Emission reductions through improved efficiency of vehicle fleets".

So, any fleet of vehicles which shows they adhere to the methodology via energy efficiencies would be able to claim a reduction in emissions and earn a credit - which, under the Opposition would be available for sale to the Government. This could suit Linfox, or other large trucking firms for example.

If done under VCS rules, the credit would also be available to sell Internationally.

Yes, it does concern me that Farming Credits would have so much competition. For this reason we are supporting the newly formed Australian Carbon Co-operative. Farmers will need to gather together to ensure they are able to get economies of scale on pricing, as well as blocks of carbon to sell direct to polluters. More later!

Opposition Climate Policy gets some flesh

Wed, 24 Apr 2013 03:59:00 GMT

This is an amazing time - I don't think I've lived through a pre-election period like it. The Government is attempting to get through as many things as possible, as even they seem to have accepted the inevitability of the change-over. Meanwhile, the Opposition is in the mode that would normally take place AFTER an election. Politics sure is a funny game. I think it prudent not to assume anything and be aware of what might happen under either scenario.

So, Greg Hunt, shadow minister for climate action, Environment and Heritage has fleshed out more of what will happen in this area should the Opposition win Government. Click here for the full story, but here are the main points for our stakeholders:

• They agree on: 1. The 'science of climate change', 2. the targets to reduce emissions - ie the 5% by 2020 (which may be far too low to actually stall climate change) and 3.on using markets as the best mechanism to reduce emissions.

•They will keep and expand the Carbon Farming Initiative - meaning we have to compete with energy efficiency - which is usually understood to be a cheaper alternative to our 'natural ecosystem' solutions.

They have said they will offer a 25 year project period for these credits - hopefully adding choice - however it will affect price. One of the main things is to 'unblock' the CFI pipeline for farmers - to put the 'farming' back into the Carbon Farming Initiative!

However, to actually stall climate change, we must take many millions of tons out of the atmosphere - and only photosynthesis can do that. ONe day the world will wake up to that reality.

•So, with the Governments 'tax' becoming a market in 2015 - looks like a market either way. BUT, how do farmers make sure they get a fair price - that is yet to be played out, but one thing is for sure - Farmers will have to fight to be paid fairly, and have access to more than just the 'Government' as a buyer. This speaks to two things for me:

1. We need a robust Voluntary market - which involves marketing our 'value added' credits at home and abroad. (Value added = improved resilence to climate change, improved productivity and assisting to drought proof Australia) Under the Coalition, they are the only buyers and this is just not enough.

2. We need excellent 'aggregations' - Structures run by farmers, for farmers. NOT just city based businesses - structures where the money from the credits will flow back into the Regions. There is already one such - The Australian Carbon Co operative (ACC). Click here to read a little about them. If ever there was a case for a new farmer co operative, surely the carbon market is one. Greg Hunt acknowledges this "There will be an opportunity for organisations to act as aggregators and bid into the market as a group. As an example, ....... Farmers may work together to deliver carbon capture and storage in soil, or landowners to achieve abatement through revegetation or reafforestation of marginal lands".

So, that is why we'll be raising the profile and understanding of the Voluntary market - up until now the more 'maligned' and dismissed market due to its size. As I've said before, niche markets can work!

We are also talking with the ACC to move those excellent values along for farmers.

Will keep you posted!

Getting to know the Voluntary Market.

Thu, 18 Apr 2013 02:41:00 GMT

Now that it is looking more and more like the Voluntary Markets will be very important, its time to get to know them!

click here and get learning!. These guys are a company, not a Government, and they are rapidly becoming THE go-to system for creating methodologies. This is also a glimpse into the future if the Coalition wins Government because it encompasses many of the things they are talking about in addition to the Carbon Farming Initiative - ie Energy Efficiency methodologies. They are also not stuck on the 100 year rule.

Lets make the future work for us!

Quite a good, balanced view on what is happening.

Thu, 18 Apr 2013 02:18:00 GMT

Its hard to get any 'balance' in the discussion at the moment, so really had to send this one out!

Click here for a balanced view

Voluntary Markets Power On!

Thu, 18 Apr 2013 01:43:00 GMT

Further to yesterday's 'keep on keeping on' message, click here to see the latest in investments worldwide in the Voluntary Market Space.

The fundamentals have NOT gone away: -

•climate change and the need to do something.

•Need for business to show they are doing something.

•The biggest polluting countries just coming on line.

•The ability to market good quality credits - such as soil c credits, for a premium.

I guess because we have 25 years of marketing experience from our previous life, we are not afraid of a niche market - remember the beginnings of the Organic market?

Also, there is more to the 'on farm' carbon story than just the Carbon Farming Initiative and Carbon Credits. Think 'integrated carbon farming' . A carbon farm plan which may include biomass, biochar, farm forestry and others. This is how we will develop the carbon farming conference this year - examining and developing ALL the areas, now we have an understanding that Carbon is a new commodity with various potentials. Stay tuned!

The Carbon Market for farmers is doomed, right?

Wed, 17 Apr 2013 06:55:00 GMT

Did you hear about the drop in EU Carbon Credit prices overnight? Does it spell disaster, why even keep on going on this crazy - 'farmers can save the soils and improve the CO2 problem at the same time, and benefit from productivity gains at the same time?'

Well, what you expect me to say? OF COURSE WE WILL KEEP GOING! The funny thing about this space is how, no matter what seems to be happening on the low side, things are happening on up side which have simply kept us going!

Couple of recent points to keep your spirits up:

•The Coalition, as recently as today, re-iterates support for soil carbon and the CFI - with better time frames Click here for news

•China, quite a large polluter, is starting to enter the carbon market space - now there's a market! find out more

The issue is - Stop now and have no hope of taking part, or keep on going and manage to be 'in the right place at the right time' when things turn around, which they will - climate change is now an established risk. ALSO, it will take time for farmers to learn and then implement. The wheel has started to turn - NO reason to stop it now!

CSIRO wins funds for lowering the cost of soil C measurement!

Thu, 04 Apr 2013 20:28:00 GMT

The cost of Soil Carbon Measurement (yes, it needs capitals, its like the Holy Grail!) has always been one issue holding back the development of a soil carbon meth. We've never been particularly worried about that cost, as we know that business drivers will drive that down, the minute we have an approved soil c. measurement protocol - we have many great minds out there.

However, CSIRO has won funding to progress this as well in the second round of the Filling the Research Gap:

An innovative solution for accurate and affordable estimates of soil carbon—CSIRO.

Funding of $1,227,515 ex GST

This project is developing a proof-of-concept prototype system for measuring soil condition into a field-deployable system. This will assist land managers to effectively measure and detect changes in soil organic carbon stores and will provide reliable data to improve decision making and management.

There are other, more 'trade' focussed projects winning funding now too, and to see the whole round results click here

Voluntary Market Rules!

Wed, 03 Apr 2013 23:38:00 GMT

Many times in our 'carbon market for farmers and the soil' journey, we have been repremanded for suggesting that it even had any value, given that the Soil would have to be traded in the Voluntary Market and 'everyone knows' the Voluntary Market is the small, low end of the market. How could we hope to make it work, don't you need the 'mandatory market' with its super - large (low priced) orders?. Well, we always thought that the Soil holds a key to climate change mitigation - AND there is many other reasons to make sure we 'save our soils'. The Carbon Market is a tool to make this happen. And soil carbon is 'gourmet carbon' - the best of the best of stories.

Low and behold - check out the direction of the Voluntary Market. "In parallel with the exodus of market participants from the Kyoto Protocol's Clean Development Mechanism, a whopping 80 percent of project developers and investors surveyed for Point Carbon's newly released Carbon 2013 report expressed interest in exploring the voluntary carbon markets as an alternative avenue". Click here for report

Wow and Wow - maybe the Voluntary Market will be THE market - and we still believe we can make it work. Once city folk understand the win/win that carbon farming represents, they will be happy to support our farmers.

Still, we wait for the soil carbon methodology under the CFI to arrive. Slowly, things are moving. Given the urgency of the job ahead, it can't come soon enough. We'll learn as we go, and farmers can be the climate heros they deserve to be.

Groovy Map re 'we are going it alone' on price on Carbon.

Wed, 03 Apr 2013 05:38:00 GMT

Now, we all know - Australia is NOT the only country putting a price on pollution.

Here is a Groovy Map which shows in 'easy to read' detail.

What this says to me is that there will be a lovely BIG market to play in - and we'll need to be competitive - we need LOTS of experience in putting 'methodologies' in on our farming land, managing our 'carbon rights' and trading. Again, we always also say - Don't sell all your credits now - the market might improve over the years. Stay as informed as you can about what is happening in the markets and get educated about your 'future farm' - farmers now control a VERY important resource - CARBON - and they can't mine it, so they have to leave you with the right to own it!

Don't forget that BioMass is also full of carbon and has potentials as well!

Regional Australia can generate good income, have job opportunities and be a leader in CO2 reduction - its worth a good try.

Insurance industry knows climate change is here!

Wed, 03 Apr 2013 03:49:00 GMT

Yes, the insurance industry is hurting! Click here for latest figures. These are the first effects of climate change. COST, COST and more COST! How long can Governments and business ignore this? How long before you won't be able to insure against it? How long before it sends Governments broke - Queensland is a good example.

Add this to the Climate Commissions report out today find it here and we are really galloping towards the unknown! This really is a sobering read, but I hate the way it seems to assume that all is now 'set in stone' as to what will happen. Its like 'Well, the Titanic has hit the iceburg, assume the crash position'. (the report has sections on specific areas of Australia which might be of interest to you)

Yet, we are still not engaging the largest carbon sink over which we have control - the soil, we are still painfully slow at engaging new (people friendly) energy sources, and the powers that be seem to have the 'adaptation' model going - assuming we can no longer 'mitigate' or lower the effects.

I know its important for people NOT to be afraid, but we do need a really big kick up the backside! What will our children say to us - "What did you do Mummy (Daddy, Granma etc) to help save us from the worst effects of climate change?"

I reckon we should be on a WAR FOOTING now when it comes to truly making a difference in the time we have. When there is such a focus, people pull together towards a common goal. Women, in the second World War did things we never knew we could do.

The soils have such great win/wins. Such productivity and other co-benefits to be had when we store carbon back in the soils - its just not good enough to say 'the gains are only small' - we need EVERY tool we have - YESTERDAY! Sometimes I wonder if its just too easy, too 'low tech' and that's what keeps it hidden - if it cost billions to do, it would probably get more air-time! I know there are some 'difficulties' but for goodness sakes, we can get to the moon, we can invent airplanes that go faster than the speed of light, surely overcoming some technical issues with soils CAN't be beyond us????????????

Something has changed in the world of climate change!

Sun, 17 Mar 2013 13:00:00 GMT

Was is ever likely that Governments could truly lead on climate change - Truly give us the requirements rooted in the real world to act in time, and in a way which would benefit the most?

The article header reads "Corporate world forced to lead on climate change" - Well, what might that mean?

• There is now an urgent economic driver for change- Costs of the 'climate variability' are hitting Governments hard, but their reactions are too slow. The changes are happening NOW, while we figure out how to use the largest carbon sink under our control (the soils). The Carbon Farming Initiative may be well meaning, but is mired in a belief that the 'science' is too hard. We have no time to sacrifice the very good for the perfect!!

•So, now its a 'key strategic risk' for companies. Yay! Given the strength of hitting the 'hip pockets' of business, perhaps we had to wait for this time. Companies know the air must be cleaned up, they know they can't do business in an atmosphere where we are constantly hit by disasters. click here

•Sir Richard Branson recognised this a few years ago and has an initiative called the 'Carbon War Room' click here They have a mission to "harness the power of Entrepreneurs to unlock market driven solutions to climate change'.

Can the profit motive save the world?

Can we do it? Yes we can!

Tue, 05 Mar 2013 03:25:00 GMT

For those of us who believe looking after the planet is bigger than politics, we need to think of life post-election. So, what do we have?

If Labour wins (and stranger things have happened), we get 'business as usual' - The CFI, and a mandatory market, but with prices linked to the EU post 2015 - which, by all accounts probably means low prices! We also get a market STILL run by Government - and since when do Governments run a market well?

If the Coalition wins we get the CFI, plus 'CDM type' projects - which is to say energy efficiency methodologies - in an effort to gain 'lowest cost' abatement. Soil is still in their 'direct action' plan, but has to compete with others. It is 'assumed' soil may well NOT be lowest cost (due to delays in getting going and bringing forth innovation I would suggest!)

Either way, we get a mandatory market at low prices - high volumes AND/ OR a market dominated by ONE player - the Government - after low prices.

However - strangely enough, they both need to reach the 5% by 2020 target, which is quite a lot of carbon. Therefore one can safely assume there is a market.

As one who entered this space with a deep belief that we need to make changes to the way we consume energy and to the improvements of our 'farm scape' , as well as continue to grow economically and socially, then I'm wondering:

Can we make a market without 'Government' How do we transition from this phase of 'Government forcing us to do something to a population which wishes to make changes and therefore change happens?
Is this happening anywhere in the world?

If so, what is the 'business case'?

The cost of the extreme weather events is already mounting, here and overseas. This is why Governments are worried. China is worried! They will 'mandate' things as we move forward and it is likely they will impose tarriffs on countries who are not doing something.
Most people have children and grandchildren and wish for our most beautiful planet to remain so. After all, 'good planets are hard to find' and even if there is a small chance climate change is real, if we give them a Good Value, easy to implement reason for adding $25 a week to their budgets to ensure it does, I have no doubts they will do so. (how much does a steak cost in Sydney, for example?)
Business understands they need a stable atmosphere to maintain business and they have a duty of care to stakeholders and others. Responsible business such as Transforce Buik Haulage in Dubbo NSW stands ready to support farmers in their bid to improve their soils and help them 'clean up after themselves'

So, I'm dreaming of a real market, one where normal business drivers exist, where jobs are created and profits earnt, where our soils are simultaneously resorted, our air cleaned and our children protected. Where our energy efficiency improves, we learn to use our waste profitably again and Government is not front and centre!

Can we do it? Yes we can!

The Two Markets

In this week's webinar 'The Two Markets' we will be exploring some of what is happening here and overseas and 'envisioning' a market we'd like to live in. Our webinars are for innovators - We go beyond just 'explain the CFI', we give clues to potential futures, we open up your mind. We have over 25 years of Marketing and Business experience which we have focussed in this area. Come, pick our brains and be inspired about the future!

What are "CDM Type" methodologies?

Greg Hunt this week said the Coalition would use 'CDM Type' methodologies in addition to the CFI. For those interested in finding out more about the CDM mechanism click here to gain an insight.

I remain your humble carbon servant. I can be reached on 02 6374 0329, or email louisa@carbonfarmersofaustralia.com.au.

What exactly IS in the Direct Action policy of the Coalition?

Tue, 26 Feb 2013 13:00:00 GMT

Given the current 'confusion' around this, I thought it would be great to put up Greg Hunt's speech to the Dubbo conference last year. Click on the button below to download the transcript.

Download the Transcript

Greg has assured me that this remains the policy! It actually says that they will be after the lowest cost abatement - no matter where it comes from.

Are they retreating from soil carbon? You make up your own mind.

But wait, there's more...

Tue, 26 Feb 2013 02:17:00 GMT

CFI 'heats up'

Amazingly, having reported the first soil carbon measurement protocol published, we have two more in the pipeline! And also, RCS (Grazing for Profit) will soon be putting up a soil carbon methodology for the CFI - with a new soil carbon measurement protocol in it as well. This leaves the CSIRO one needing to come to light. Yes, innovation will come. Thats what getting started is about.

This is why we do not agree that investigating the sequestration potential of soil carbon is 'going up a blind alley'.

Yes, we were floored by the Radio National Story on Sunday - The journalist did a great job, but it appeared to be a 'shut the gate' exercise from Dreyfus. Personally, I think he is worried that it is an area that the Opposition could just creep up behind them on - again. And again, the Government may be shown to be wanting.

Do we remember, for instance, how many times it took Thomas Edison to discover how to make an electric light work more efficiently! The scientists themselves now acknowledge the need to look into areas which we asked for right from the beginning (collaborative science with those making the high end of sequestration a reality)!

For our response to the Sunday program, please check it out here.

To me, it looks like soil carbon may have just become politicised in this highly charged election year. However, the soil remains the largest carbon sink under our control, and if we do not want any perverse outcomes from only allowing trees to be planted , then we have only just found out one small piece of information to be put into the jigsaw puzzle.

In the meantime, we had a great first webinar last week and are set to continue this week. This Thursday we continue with 'The Carbon Farming Initiative Process', featuring 'The Seven Steps to a Carbon Credit'. Register now to receive the most up to date information from those that know!

I remain your humble carbon servant. I can be reached on 02 6374 0329, or email louisa@carbonfarmersofaustralia.com.au.