August 2021 - WA Carbon Connections
This month:
Final call for CF-LRP + an extension for soil projects
New WA projects on the ERF register
A Commbank loan linking interest rate with sustainability targets
More countries looking to impose carbon tariffs
Here’s a snapshot of the carbon prices today
And before we start on our articles... a shout-out to a forward-thinking farmer from out Kulin way who recently shared an interesting article on LinkedIn which discusses the idea of linking crop insurance premiums to soil health. Check out the Modern Farmer article here. It's certainly an interesting idea.
Our take on this is; if landholders are going to have to improve their soil health in the interest of financial viability anyway, wouldn't it be best to get a carbon baseline measurement before making a start?
DPIRD gives extra time on some CF-LRP EOIs ... OMG!
Phew, that's a lot of acronyms! So let us translate.
The fast-approaching August 20 deadline to submit an expression of interest (EOI) in the Carbon Farming and Land Restoration Program (CF-LRP) has been extended for some parts of the program until October 1. Oh my goodness (OMG)… that's a relief, because, for those of you who've already had a look at the Department of Primary Industries and Regional Development (DPIRD) website link we sent you last month, you'll know it's not for the faint-hearted.
While the EOI submission process is largely knowing which box to tick for your property, there are a lot of carbon-specific questions that are a bit tricky if you aren't familiar with 'Carbon-ese'. However, don't dismay! It isn't rocket science, and if you need advice, you can give us a call.
Once the carbon market picks up speed (which has already started, we can assure you!), it's unlikely government support for those wanting to establish carbon projects will continue for long, so missing this CF-LRP opportunity may be something you later regret. Essentially it helps cover the establishment cost by enabling you to pre-sell Australian Carbon Credit Units (ACCUs) to the CF-LRP. Once your project is cranking along and generating credits, you pay them back.
The deadline for EOIs is still the 20th of August for vegetation projects and 'Future Carbon' submissions but;
The new deadline for soil carbon project EOIs is now October 1.
However, don't delay as the submission may take a month or so to prepare.
ERF project register swells in 2021
We're starting a new section of the newsletter where we report on any new WA projects added to the ERF register each month. To kick off, we'll give a bit of background info. The ERF currently has 998 projects registered, and 2021 has seen exactly 90 new ERF projects registered to date. WA has 18 new projects in the first half of 2021 of its total 166 projects.
Keep in mind that ERF projects cover a range of categories such as vegetation (generally tree plantings of some kind), agriculture (soil carbon sequestration projects and emissions reduction projects including piggery and cattle herd management), and other methods of emissions reduction like waste management, transport, and energy efficiency projects.
So far, we have only three projects registered in WA under agricultural methods. Three! Out of a national total of 173. We reckon this probably has something to do with why the government is trying to support landholders who want to give it a crack.
CommBank loan interest linked to sustainability
A new development around carbon for the agriculture industry is indicated by the Commonwealth Bank's recent loan to Queensland beef cattle company Stockyard Group. The loan, in what the bank is calling a world-first, will adjust the interest charged based on how well the beef producer meets certain 'social responsibilities'. As well as the usual social indicators of animal welfare and staff working conditions, the bank is tracking emissions reduction as a key factor in reducing interest.
The Commonwealth Bank cites growing customer and investor interest in sustainability as the driver for this new type of loan.
Stockyard says it is set to save tens of thousands of dollars if it can meet the targets set out in the loan, and suggested that the audits for meeting the targets would be made public, and reinforced their commitment to the industry-wide 2030 carbon neutrality pledge.
We certainly hope to see more initiatives from banks and other links in the supply-chain to reward farmers for their sustainable practices. Read the ABC article detailing the deal here.
Not Just the EU's carbon border tariff
We've written about the EU's impending carbon tariff that will affect those exporting to the EU from countries (like Australia) which aren't enforcing the same emissions standards upheld in Europe. When this policy is implemented, likely in 2023, Australian exports (including agricultural commodities) could face a tariff whether our government thinks ag's emissions should be counted or not.
And now it seems that the EU's policy is also gaining traction in other countries, including the USA, Canada and Japan, potentially narrowing the options of Australian exporters hoping to dodge the EU tariff.
About 70 percent of our trade is with countries that have committed to net zero emissions by 2050, so if exporters want to dodge carbon taxes, they may have to keep looking.
See the full stories here and here.
Quote of the day
"When the only tool in your toolbox is a hammer, you tend to see every problem as a nail."
~ Buddy Wheaton, Narrogin, November 2003
We love this quote from a scientific report released in 2004 called 'Soil-landscape mapping in south-Western Australia: an overview of methodology and outputs' (B. Purdie, P.Tille and N. Schoknecht). We don't know Buddy Wheaton, but reckon this quote from him is a ripper.
Not all problems are nails, especially when it comes to soil-based production systems. We seriously need to acquire more tools.
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