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CARBON FARMING TO INCREASE YOUR $$$ YIELD FROM THE FARM

Carbon Credit Farmers?  Carbon Farming is bankable

Wednesday, 30 Nov 2011

The Federal Parliament’s recently introduced ‘Carbon Farming Initiative’ creates an opportunity for farmers, foresters and landholders to take advantage of the carbon stored in their trees or soil.

Landholders who reduce greenhouse gas emissions or sequester carbon through accredited practices may be able to ‘sell’ carbon credits to large emitters such as coal mines or power stations.

The initiative was passed on 15 September 2011 and will be operational by December 2011.
The federal government is currently working through an accreditation process for eligible schemes under the initiative. Proposed eligible activities may include projects which involve:

  • Avoided deforestation and reforestation projects
  • Methane emission control
  • Reducing fertilizer use
  • Soil and manure management
  • Fire management

How are projects accredited?

The ‘National Carbon Offset Standard” (NCOS) will develop and apply internationally       recognized standards to abatement projects. The key pillars of accreditation are to ensure that projects are additional, permanent, measurable and verifiable.

Some tips for potential “Carbon Farmers”

  • Do your research

“Carbon Farming” or trading may be a very useful cash flow stream or opportunity to liquidate some capital assets without selling the farm. However, it will be important for participants to be fully informed of the projects that are available and their individual requirements.

  • Read the fine print

Make sure you know what you are entering into and the details of any contractual obligations. Due to the long term nature of many carbon credit schemes, terms and conditions are likely to be binding for a long time and difficult to unwind.

  • Avoid unforeseen costs

Before entering into an agreement seek advice on any potential taxation or transaction costs. The last thing landholders want to see is their hard work end up back in the government’s coffers!

If you would like to know more information about the Carbon Farming Initiative, please contact Tom Marland on 07 4617 8777.

Tom Marland07 4617 8777

tmarland@crlawyers.com.au

Please advise the lawyers that ontained their details from our site.

THIS ARTICLE WAS PRESENTED AS A SERVICE TO THE MAN ON THE LAND
Sourced & published by Henry Sapiecha

December 16th, 2011
Topic: CARBON CREDITS, Money & Investments Tags: , , , , ,

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