February 2010 edition
Carbon Pollution Reduction Scheme and Agriculture
Mick Keogh from the Australian Farm Institute presented to 30 landholders at Corryong on 14 December on the Carbon Pollution Reduction Scheme (CPRS) and agriculture. The evening was a follow up from a recent joint Upper Murray Landcare Network and DPI Agfutures event.
The evening was very successful, with Mick answering a wide array of questions from the audience and providing information on what we know, don’t know and what it might mean for farmers. Some of the key messages that came out of the evening were:
- nitrous oxide and methane emissions from agriculture are currently excluded from the CPRS;
- regardless of what emissions reduction policy is implemented in Australia, landholders will need to be responsible for their on-farm emissions to meet processor and consumer demands for 'clean green' products. Reducing on-farm emissions will help to lift productivity and counteract the likely increase in farm operating costs due to living in a carbon-constrained economy;
- agricultural emissions include livestock, livestock wastes, fertilisers and non carbon dioxide soil carbon;
- costs of energy and energy-related farm inputs (e.g. fertilisers) will increase;
- cattle and sheep account for two thirds of on-farm emissions and
- reducing your on-farm emissions can increase your productivity. For example, improving the diet of cattle and reducing their methane emissions means they are getting better use of their food which might lead to an increase in meat or milk production. Efficient use of nitrogen rich fertilisers will decrease your nitrous oxide emissions and increase the total value of your fertiliser application.
Why has soil carbon been left out?
Under international rules, soils can be included in the national emissions accounts to create carbon credits. However, all three of the following criteria must be met.
(1) Demonstration of a net gain in carbon stored, year on year
Net-Net Accounting rules apply in emissions trading which focuses on the flow of carbon being sequestered. So if your soil carbon flow is 0.5 per cent gain each year, you then need to increase the flow level above and beyond this for each subsequent year to be eligible for credits. In the majority of Australian soils, this would be very difficult to do and soil carbon could become a liability (debit) rather than an asset (credit) in our National carbon accounts.
(2) One in all in
If soil carbon is included, the whole of Australia and every farm business in the country is in. It does not just include the areas where soil carbon is increasing.
(3) No separation of natural and man made changes
Emissions trading aims to remove man induced carbon from the atmosphere. However, major soil carbon emissions occur during drought and bushfires which would add to Australia’s total emissions accounts and potentially lead us off target in meeting our global commitments.
It is up to individual countries to decide whether or not they include soil carbon in their emissions accounts. These criteria are the reasons why Australia has not included soil carbon in the CPRS to date. Soil carbon is traded in voluntary carbon markets however ensure you have all the information, understand and feel well informed before signing up to any agreements. A lot of the science of soil carbon is still unknown but evolving. There is a nation wide soil carbon project underway collecting soil carbon data for different soil types and land uses which will provide valuable information in the next few years.
How do I calculate my farm emissions?
A variety of calculators are available for landholders to use to calculate on farm greenhouse gas emissions. Mick Keogh gave an overview of one such calculator that has been developed by the Australian Farm Institute. The FarmGAS calculator, as it is called, allows landholders to calculate nitrous oxide and methane emissions on their property for a mix of farming enterprises.
The DPI in conjunction with other partners is planning to run some information sessions during 2010 on on-farm greenhouse gas emissions and the tools available to calculate these emissions, so watch this space.
Overall, be careful about the different markets for carbon and ensure you have all the information, understand and feel well informed before signing up to any agreements. You don’t have to sell your carbon.
The bottom line is that it’s not all about soil carbon. Soil carbon is one important piece in the bigger picture of your whole farm. The broader priority is to reduce emissions on your property (looking at your inputs and outputs) and carry out land management practices that improve the health of your property and prepare it for a warmer and drier climate. Carbon sinks and emissions sources should be considered carefully in your whole farm plan ensuring your farm and the wider catchment remains productive and sustainable into the future.
To get regular updates and for access to the latest tools for calculating on-farm emissions visit www.new.dpi.vic.gov.au/agriculture/ctan. To access the FarmGAS calculator, go to www.farminstitute.org.au. For more information about climate and emissions, go to www.dpi.vic.gov.au/climaterisk
