August 2022 - WA Carbon Connections
This month
Safeguard Mechanism changes
Soil Sampling analysis costs breakdown
Better Futures Forum coming up
Is fence-to-fence tree planting something to celebrate?
First, the prices being paid for ACCUs and what the EU ETS lists as their carbon credit price.
Safeguarding our future…
The new Australian government has announced some significant changes to Australia’s so-called ‘compliance’ carbon market. What that means is that this country’s biggest emitters will have to increase their commitment to a ‘net zero’ goal. What’s known as the 'Safeguard Mechanism’ will be reviewed and tightened, so emitters will have a declining limit on the emissions they can produce before having to buy carbon credits to offset emissions above that amount. Up to now, the ‘baseline’ has been rather static, set at the amount emitted for most companies in 2005, and there’s been some criticism of the ’Safeguard Mechanism’ in the past for being too weak and not sending a strong signal to investors that emissions reductions technologies will be valuable.
Why analysing soil samples for ERF soil carbon projects is not cheap
One of the biggest obstacles for many landholders in establishing an ERF soil carbon project on their property is the high cost required to analyse soil samples and determine their ‘baseline’ stocks of Soil Organic Carbon (SOC). To get a verified analysis of soil carbon down to 1m currently costs between $150 and $185 per core. But why isn’t it cheaper? And will it come down?
While many labs can analyse soil samples for total organic carbon, only some labs have the certification for measuring soil carbon which satisfies the rules of the ERF methodology which can generate ACCUs. This narrows the options on ERF-compliant soil analysis. There’s also been a huge amount of interest in getting soil carbon measured in the past year or so, meaning that all accredited labs are being flooded with samples for analysis. That gives us low supply and high demand, so the cost is high.
There is a big ongoing effort to help reduce the cost of analysis, and many technologies are starting to arrive which might help... even satellite measurement of soil carbon. The final hurdle for any new method though, is that it needs to be verifiably accurate and accepted by the regulator as a reliable way of proving the amount of carbon in the soil.
The cost of analysis reflects the rigour which makes Australian Carbon Credit Units a verified, fungible financial unit with a high level of integrity. This is why so many project owners are aiming to produce ACCUs rather than unverified carbon credits.
By way of analogy, you’re paying for a genuine Rolex that will be working in 25 years, rather than a cheaper watch which might not be as valuable down the track.
Better Futures Forum
We want to give a plug to the upcoming Better Futures Forum being held in early September.
“The Better Futures Forum, 6-7 September 2022, provides a platform for Australian companies, local, state and territory governments and community organisations to publicly launch their commitment to more ambitious climate action and plan ways to collaborate, including with the newly elected government, to create better futures for us all.”
The two-day event, held in Canberra is also online, if you’re interested in attending, seeing what’s on the program or learning more, visit their website here: www.betterfutures.org.au/forum
Social comment...
Carbon West’s mission is to enable farmers to be rewarded for creating healthier soils on farmland.
It would not, therefore, come as much of a surprise that company founder, Jennifer West, isn’t super keen on seeing productive farms blanket planted to trees. To read Jen’s comment on an ABC article on Telstra doing just that, you can find it here on LinkedIn.
Quote of the week
We don’t have to sacrifice a strong economy for a healthy environment.
– US actor and environmental activist, Dennis Weaver.
We equally don’t think we can’t afford to sacrifice a healthy environment for a strong economy.
Get in touch with Carbon West:
Sam Ewart
Ph: 0421329418
samuel@carbonwest.com.au
Jennifer West
jennifer@carbonwest.com.au