Clean Energy Future

The Carbon Farming Initiative and other land sector measures

The Carbon Farming Initiative (CFI) allows farmers and land managers to earn carbon credits by storing carbon or reducing greenhouse gas emissions on the land.  These credits can then be sold to people and businesses wishing to offset their emissions.

The CFI also helos the environment by encouraging sustainable farming and providing a source of funding for landscape restoration projects.

Want to know more about the Carbon Farming Initiative? Watch these short videos CFI Overview, Capturing piggery methane,  Capturing landfill gas and Environmental plantings.

General information about the Carbon Farming Initiative

For information on the Carbon Farming Initiative – how it works, which activities can generate carbon credits and the ground rules for these activities – contact the Department of Climate Change and Energy Efficiency.

The Department of Climate Change and Energy Efficiency is responsible for:

• developing the Carbon Farming Initiative legislation and supporting regulations
• developing the rules (methodologies) for undertaking Carbon Farming Initiative projects

The Department of Climate Change and Energy Efficiency also provides secretariat support to the independent Domestic Offsets Integrity Committee, which assesses methodologies for use under the Carbon Farming Initiative.

www.climatechange.gov.au/cfi | 1800 057 590 | cfi@climatechange.gov.au

Information for farmers and land managers

For information, tools and support to respond to climate risks and opportunities and benefit from creating land‑based carbon credits through participating in the Carbon Farming Initiative contact the Department of Agriculture, Fisheries and Forestry.

The Department of Agriculture, Fisheries and Forestry is working with many partners, including industry and researchers, to:

• contribute to the development of Carbon Farming Initiative policy and the rules (methodologies) for undertaking Carbon Farming Initiative projects
• support research and on-farm trials of innovative practices and technologies that reduce agricultural greenhouse gas emissions and store carbon in the landscape
• provide information to farmers and land managers to enable them to make the most of the opportunities provided by the Carbon Farming Initiative
• Regional Landcare Facilitators are talking to people in their regions about the Carbon Farming Initiative—contact your nearest facilitator to find out what’s happening in your region.

The Department of Agriculture Forestry and Fisheries | 1800 156 858

To apply

For information about applying for a Carbon Farming Initiative Project contact the Clean Energy Regulator.

The Clean Energy Regulator is responsible for:

• issuing Australian carbon credit units
• managing the holding, transfer, retirement, relinquishment and cancellation of units through the Australian National Registry of Emissions Units
• approving participation in the Carbon Farming Initiative by individuals and entities
• approving Carbon Farming Initiative projects
• educating participants on how to comply with the Carbon Farming Initiative rules.

www.cleanenergyregulator.gov.au | 1300 553 542 | cfi@cleanenergyregulator.gov.au

Land Sector Package

In addition to the many opportunities for farmers and landholders under the CFI, the sector is supported by a comprehensive $1.7 billion Land Sector Package. This includes:

• An ongoing Carbon Farming Futures program ($429 million over the first six years) for research, development, on-farm trials and extension to help farmers and land managers take action on the land to reduce greenhouse gas emissions and / or increase carbon sequestered in the landscape, including support for conservation tillage equipment.
• An ongoing Biodiversity Fund ($946 million over the first six years) to support land managers to store carbon, enhance biodiversity and increase resilience across the Australian landscape.
• The $250 million Carbon Farming Initiative Non-Kyoto Carbon Fund to purchase CFI credits.
• A Regional Natural Resource Management Planning for Climate Change Fund ($44 million over five years) to update existing regional NRM plans to guide planning for climate change impacts on the land and to maximise the environmental benefits of carbon farming projects.
• An Indigenous Carbon Farming Fund ($22 million over five years) supporting Indigenous Australians to participate in the Carbon Farming Initiative.
• A $4.2 million Carbon Farming Skills program to establish a new qualification in carbon farming and an accreditation scheme for carbon service providers.

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Boosting support for farmers and landholders

Boosting wider land action

The Government will purchase carbon credits through the Carbon Farming Initiative non-Kyoto Carbon Fund. This $250 million program over six years will create incentives to undertake land-based action such as the storing of soil carbon, revegetation and forest conservation.

Credits from these projects can also be sold to companies wanting to offset their carbon pollution to meet voluntary commitments to carbon neutrality.

Australia will continue working to develop new international rules that recognise a wider range of action to reduce pollution on the land. In future, this may allow landholders to sell credits from a wider variety of projects to companies with obligations under the carbon price.

Farmers and landholders have an important a role to play in reducing carbon pollution as governments, households and the wider business community.

Carbon Farming Initiative

The Carbon Farming Initiative will provide new economic rewards for farmers and landholders that take steps to reduce carbon pollution. It will do this by creating credits for each tonne of carbon pollution which can be stored or reduced on the land. These credits can then be sold to other businesses wanting to offset their own carbon pollution.

The Carbon Farming Initiative will create a new income stream for farmers, new jobs for rural and regional Australia and provide strong incentives to identify and implement low-cost methods of pollution reduction.

Carbon farming projects can increase resilience to the impacts of climate change, protect our natural environment, and increase farm profitability and food production. Increasing carbon storage in agricultural soils improves soil health and productivity. Revegetation will help restore degraded landscapes, provide biodiversity habitats and corridors, and help to address salinity, protect livestock and reduce erosion.

For more information see Chapter 9 – Creating opportunities on the land or download the Carbon Farming Initiative factsheet.

For further information about the Australian Government’s plan for the land see:

• Boosting support for farmers and landholders
• Farming for the future
• Supporting skills in land management
• Unlocking the benefits of biodiversity
• Carbon Farming Initiative
• Department of Agriculture, Fisheries and Forestry – Carbon Farming Initiative
• Department of Sustainability, Environment, Water, Population and Communities – Clean Energy Future

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Farming for the future

Conservation tillage

The Carbon Farming Futures program will include specific support for conservation tillage equipment. This will be delivered by a 15 per cent refundable tax offset for eligible equipment. This will incentivise farmers to move to zero till and minimum tillage farming techniques which can enhance soil carbon, water retention and productivity.

Farmers will be required to participate in research and methodology development to assist efforts to settle methods for crediting soil carbon under the Carbon Farming Initiative.

Carbon Farming Futures

The Carbon Farming Futures program will deliver $429 million over six years to help farmers and other landholders benefit from financial opportunities under the Carbon Farming Initiative:

• support will be provided for research to investigate new ways of storing carbon and reducing emissions in the land sector, including biochar and biofuels
• this ongoing program will support landholders to take action such as testing new ways to increase soil carbon and reduce emissions
• new funding will be made available to test more effective methods for measuring carbon stored in soils and to integrate carbon farming into everyday farm business
• extension officers and outreach activities will give landholders access to information to help them benefit from carbon farming.

These measures will improve the sustainability and profitability of Australian farmers and landholders.

For more information see Chapter 9 – Creating opportunities on the land.

For further information about the Australian Government’s plan for the land see:

• Boosting support for farmers and landholders
• Supporting skills in land management
• Unlocking the benefits of biodiversity.

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Supporting skills in land management

Indigenous Carbon Farming Fund

The Indigenous Carbon Farming Fund will help Indigenous Australians to take full advantage of the Carbon Farming Initiative. Funding will be provided for specialists to work with Indigenous communities on carbon farming projects. The Fund will support the development and uptake of Carbon Farming Initiative activities which are likely to have high Indigenous participation such as savanna fire management.

Further support for research, tools and low cost methods for estimating and reporting on emissions abatement will be available. This Fund will make it easier for Indigenous groups to participate in the Carbon Farming Initiative by addressing barriers associated with communal and native title land tenure.

Carbon Farming Skills

The Carbon Farming Initiative will increase demand for carbon services and provide new career opportunities in rural and regional Australia.

A new nationally accredited qualification will be developed for carbon service providers (such as carbon brokers and aggregators), who will connect farmers and landholders to the carbon market. This initiative will support high standards in an important and emerging industry.

The Carbon Farming Skills program will ensure that there are people in regional Australia with the necessary skills to support implementation of the Carbon Farming Initiative. It will further drive the development of the carbon jobs sector by setting up a training and accreditation system, boosting rural and regional employment.

Information and training workshops will be provided for farm extension officers, catchment management authorities, agronomists and other rural service providers. This will ensure that landholders have access to credible, high quality advice about carbon farming opportunities.

For more information see Chapter 9 – Creating opportunities on the land.

For further information about the Australian Government’s plan for the land see:

• Boosting support for farmers and landholders
• Farming for the future
• Unlocking the benefits of biodiversity.

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Unlocking the benefits of biodiversity

Biodiversity Fund

Australia has highly diverse native ecosystems. Biodiversity plays a crucial role in maintaining the productive capacity of our landscape. Restoring native vegetation and soil carbon can build and protect our biodiversity and store carbon pollution.

The ongoing Biodiversity Fund has been allocated $946 million over the first six years of the program and will support projects that establish, restore, protect or manage biodiverse carbon stores. Funding will be provided for establishing mixed species
plantings in targeted areas, such as areas of high conservation value including wildlife corridors, riparian zones and wetlands.

The Fund will also support action to prevent the spread of invasive species across connected landscapes and the management of existing biodiverse carbon stores. This includes land already under conservation covenants, subject to land clearing restrictions, and publicly owned native forests.

These measures will help protect Australia’s ecosystems, building resilience to the impacts of climate change.

For more information see Chapter 9 – Creating opportunities on the land.

For further information about the Australian Government’s plan for the land see:

• Boosting support for farmers and landholders
• Farming for the future
• Supporting skills in land management.

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