May 2021 - WA Carbon Connections

This month, we detail two opportunities for WA landholders to access government funds for carbon projects, bring you evidence of the constant march of our society towards a greater awareness of our carbon footprint, and detail some ‘big picture’ moves affecting the world of carbon.

CSP May.png — Here’s an update on where the carbon price stands:

GOVERNMENT FUNDING FOR CARBON PROJECTS IN WA

SWCC Carbon plus biodiversity pilot – application period now open

This one is very good news for landholders in the South West catchment area (see map, below). Under the Carbon + Biodiversity (C+B) pilot program, the Federal Government will pay farmers for improving biodiversity as a result of planting trees for carbon sequestration.

The $34 million C+B pilot program aims to stimulate farmer engagement in ERF carbon projects on their properties by meeting up to about 75 - 80% of the cost of developing an ERF project of between 5 and 200Ha in area.

To make an application, the landholder must commit to registering an ERF carbon project using the ‘Environmental plantings’ methodology. This could include planting and managing vegetation to regenerate gullies, waterways and hillsides, link areas of remnant bush and create habitat for threatened species.

The nicest thing about this program is that the funds administered are not offered as a loan, but a payment for the biodiversity benefits the project is deemed to create. The ERF project is then the responsibility of the landholder to register, manage and receive the income from, for the duration of the project.

Carbon West consultants have explored the application process and can assist eligible landholders to submit a project proposal for consideration by the South West Catchments Council (which was chosen as one of only 6 natural resource management regions in Australia to administer the pilot project). The application period is now open and remains open until June 11.

This could be a great opportunity to realise some of those “one day I’ll revegetate” plans. To inquire about how Carbon West can assist you with an application, contact us ASAP (no later than May 26).

WA State Government funding: Carbon Farming and Land Restoration Fund

A loan to enable farmers to engage in carbon farming projects is the likely offering to farmers from the State Government’s Carbon Farming and Land Restoration Program (CF-LRP)

Expected to begin later this year, the $15m program has been developed by Department of Primary Industries and Regional Development. A cash loan, expected to cover about 75% of the cost of a carbon project, would be administered by the Rural Business Development Corporation (RBDC). The loan would be repayable in Australian Carbon Credit Units (ACCUs) once they are generated by the ERF carbon project.

At an event at Muresk last week (April 21), DPIRD staff and Agriculture Minister Alannah McTiernan outlined the planned format of the CF-LRP initiative and sought feedback from carbon industry stakeholders on its final format.

Minister McTiernan particularly hopes the scheme will help facilitate a higher rate of engagement in the ERF soil carbon methodology, a method which has not yet been broadly adopted in WA. DPIRD staff suggested the first round of applications for funding from the CF-LRP would open within the next few months and encourage all landholders in the WA agricultural region to apply.

Do you need help interpreting and/or applying for the government funding opportunities?

Carbon West offers an independent consulting service to landholders who seek to better understand the carbon market and the carbon opportunities available to them. The ERF Carbon Opportunities Report our consultants can prepare for individual properties will help landholders better understand the management obligations, financial realities and compliance requirements of an ERF project.

Carbon West can also offer services to landholders needing support in submitting an application for grant/loan program funds. Contact us through our website or email jennifer@carbonwest.com.au, samuel@carbonwest.com.au or kerryn@carbonwest.com.au

Fastest route, or cleanest route?

Carbon has been slowly growing more central to peoples’ lives for decades, but assurance that the general population has carbon on their minds, has come this week from Google Maps: the giant in personal navigation has announced it will soon begin offering users the option of choosing routes based on their expected carbon emissions. The rollout scheduled to begin in June is another indicator of how people are developing an increased awareness of their own carbon emissions, which can only be good news for the broader carbon industry. Learn more in this article.

Fortescue Metals carbon neutral 2030

Closer to home, Fortescue Metals Group has announced that it will be carbon neutral by 2030, a major commitment for the large company. This development may well cause some ears to prick up in a variety of industries, with the chance that this move might cause more large emitting companies to follow suit, further driving demand for carbon offsets. Twiggy Forrest himself gives more detail here but many will be wanting to know more; will they use verified offsets? will offsetting be done in Australia or overseas? We hope these questions will be answered soon!

Biden’ summit spurring climate action?

The big-picture news in recent weeks has been the ‘return’ of the USA to global leadership in tackling climate change. In the virtual meeting of 40 countries, the USA pledged to halve its carbon emissions by 2030 based on 2005 levels, and a number of other nations, including Japan and Canada, used the occasion to increase their standing targets for climate action. In contrast, Australia has not pledged to increase its targets. The summit is summarised in more detail here, but it seems the world will be watching Australia for some movement on climate policy when the UN climate change conference takes place in Glasgow this November.

Quote of the day

This month’s quote comes from the summit mentioned above and China’s President Xi Jinping, who succinctly said:

"to protect the environment is to protect productivity, and to improve the environment is to boost productivity"

Say what you will about China’s contributions to global greenhouse gas emissions, but we certainly agree with Mr Xi on that point, and if China’s impressive ability to wield its manpower and resources is applied to tackling environmental degradation with gusto, this statement may well ring true.

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