A practical overview from planning to practice on environmental plantings.

1. A practical overview from planning to practice on environmental plantings. • Source: Clean Energy Regulator (CER) July 2013

2. Purpose • support your participation • help you to understand what’s involved

3. Introduction Purpose: Understand Clean Energy Regulator’s role Understand key concepts behind the Carbon Farming Initiative’s design

4. Clean Energy Regulator • Our vision is to support Australia in transitioning to a low carbon economy through an informed and efficient market for carbon and investment in renewable energy.

5. Three government organisations have a role in the Carbon Farming Initiative

6. Australian Government response to Climate Change • International: Kyoto Agreement • Domestic: Reduction in greenhouse gas pollution using the market • Carbon pricing mechanism

7. How the Carbon Farming Initiative works • You can earn Australian carbon credit units (ACCUs) by: • storing carbon, or • reducing greenhouse gas emissions on the land • 1 ACCU = 1tonne of carbon dioxide equivalent (CO2-e)

8. Methodology determinations • Set out the rules for undertaking a specific activity to earn Australian carbon credit units

9. Storing greenhouse gas emissions on the land • Sequestration in plantings can only offset emissions if it is stored permanently  for 100 years

10. Guide to undertaking an environmental plantings project Purpose: Support your decision to apply the Environmental Plantings methodology on your farm.

11. What does an environmental plantings project look like? • Permanent planting of trees native to your local area • Project land in 5 years prior: • non-forested • used for grazing, pasture management, cropping, nature conservation or settlement • not had woody plants removed (except known weed species required to be removed by law)

12. Why participate? Another part of your farm’s enterprise. Benefits: • Income from sale of ACCUs • Enhance water quality • Protection for stock (shade, wind breaks) • Improve biodiversity

13. How do I get started? • Check your eligibility • Assess the feasibility • Check your expectation for return on investment • Decide on your business model • Apply: • Recognised Offsets Entity • ANREU account • Eligible Offsets project

14. How do I undertake an environmental plantings project? • Permanent planting of trees native to your local area, meet plantings requirements • Map your project • Use the reforestation modelling tool • Maintain the environmental planting

15. Map your project • Carbon Farming Initiative Mapping Guidelines • Stratify your project area into carbon estimation areas with homogeneous characteristics. Each area has a single model point.

16. Use the Reforestation Modelling Tool • Input data to Reforestation Modelling Tool • Use the Reforestation Modelling Tool to calculate carbon stock in each carbon estimation area • The reforestation modelling tool is a computer program that identifies carbon stock within the tree and debris carbon pools based on inputs of species, management regime and disturbance events.

17. Calculate abatement • Monthly carbon stock for each carbon estimation area from Reforestation Modelling Tool • Use series of equations to determine carbon abatement • Write your offsets report

18. Using the equations: converting carbon stock change to carbon dioxide equivalent (CO2-e) Carbon stock change expressed in tonnes CO₂-e Carbon stock change in tonnes of C 44/12 (atomic weight conversion) 1 (Global Warming Potential of CO₂-e) =

19. Monitoring and record keeping • This data is crucial to your application for ACCUs. Will you be able to protect your data in an unforseen event? • Forest management • prior land use • fuel use • plants and plantings • crown cover and height • Reforestation Modelling Tool • disturbance events • Project area information • carbon estimation areas • geospatial maps • names • calculations

20. Audit report Provides a ‘reasonable assurance’ opinion on whether or not your project complies with the methodology determination and Carbon Farming legislation

21. Apply for carbon credits • Submit offsets report and audit report to the Clean Energy Regulator • Australian carbon credit units (ACCUs) are issued into your account in the Registry • Earn money by selling the ACCUs and transferring them to another account in the Registry

22. Using the Reforestation Modelling Tool Purpose: Improve familiarity with the Reforestation Modelling Tool’s outputs Demonstrate a range of scenarios and their delivery of carbon storage, using the Reforestation Modelling Tool

23. The RMT estimates carbon storage within the trees and debris for individual Carbon Estimation Areas (CEAs). • The RMT models carbon storage at a single point within a CEA and extrapolates this across the CEA area. • The RMT accesses extensive climate, soil and vegetation databases, and data relevant to the location, e.g. climate, rainfall, and soil conditions, to provide the base data for modelling reforestation projects. • Using the Reforestation Modelling Tool (RMT) • You can use the RMT to estimate the amount of carbon stored from your project.

24. Sequestration estimates will differ with location North Queensland • The project will have approximately: • 17 tC/ha after 5 years • 125 tC/ha after 15 years 2000tC 1000tC 2000tC Western Australia 1000tC • The project will have approximately: • 5 tC/ha after 5 years • 37 tC/ha after 15 years

25. Sequestration estimates for different establishment techniques These examples are located at the same point in SE Queensland This example is based on tube-stock planting at 1000/ha density as the means of establishment This example is based on direct seeding as the means of establishment

26. Sequestration estimates will respond to events

27. Need help with the RMT? • The RMT is maintained by the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education • The RMT Help Manual provides detailed instructions on the use of the tool. You can access Help Manual on the department’s website: • http://www.climatechange.gov.au/footer/~/media/publications/carbon-farming-initative/cfi-rmt-help-pdf.pdf • The Department can also provide technical assistance – contact them at: CFIRefortool@climatechange.gov.au

28. Administration: working with the Clean Energy Regulator Purpose: Understand three key administrative steps involved with Carbon Farming Initiative projects.

29. Three important parts to your administration Download application forms from the Clean Energy Regulator web site. There are no application fees. • Recognised Offsets Entity • Eligible Offsets Project • Certificate of Entitlement

30. Recognised Offsets Entity • Essential to be part of the Carbon Farming Initiative and issued with Australian carbon credit units • Open an ANREU Account • fit and proper person test • proof of identity test • Centrally processed, case officer allocated • Tip: ask us to make sure you provide the right documentation applicable to your entity type

31. Eligible Offsets Project • Sets out your plan to implement a Carbon Farming Project. • Checked by the Clean Energy Regulator to make sure you plans meet the Carbon Farming Initiative rules. • Processed by Carbon Farming team, new case officer.

32. Eligible Offsets Projects: Q8 Mapping • CFI Mapping Guidelines • Supply digital mapping files, not just a hard copy

33. Eligible Offsets Projects: Q12 Project description Make sure your project description addresses all requirements in the methodology determination.

34. Eligible Offsets Projects: Part C Legal right • Project proponent must have legal right to undertake the project: • consent from all eligible interest holders, and • carbon sequestration right.

35. Certificate of Entitlement and offsets report • Applications for Australian carbon credit units are made at the same time as you submit your offsets and audit reports. • You can choose when to report and apply for credits, within the one to five year period. • Good record keeping is essential to your report and audit.

36. Summary: three important parts to your administration • Recognised Offsets Entity • Eligible Offsets Project • Certificate of Entitlement

37. Carbon Markets and feasibility Purpose: Understand the basics on ACCU markets to enable you to ask questions of your advisors Provide you with tips to consider when undertaking your feasibility

38. Types of markets • ACCUs are personal property and can be traded. • Two key markets: • Domestic compliance market • Voluntary market

39. Selling ACCUs • Compliance market - pay attention to: • Carbon pricing mechanism in fixed price period (to 2015) • Market for European Union Allowances (after 2015) • Voluntary market – pay attention to: • Charisma of your project

40. Who can help? • Consider these resources: • Your normal bank and/or broker • Carbon Markets Institute: CFI hub • Liable Entities Public Information Database (LEPID) • Seek advice from an Australian Financial Services Licence holder

41. Project feasibility • 1. Financial feasibility • Know the costs and benefits • Cash flow • Scenario analysis • 2. Commercial feasibility • Kyoto or Non-Kyoto ACCUs? • Number ACCUs estimated? • Timeline to deliver ACCUs?

42. Project feasibility • 3. Methodology • Can you meet the rules for eligibility and data capture as described in an approved methodology determination? • 4. Regulatory Feasibility • Methodology available? • In Australia? • Required by law? • Legal right?

43. Project feasibility • 5. Legal feasibility • Pass tests to open ANREU account? • Legal right to carry out project? • 6. Organisational capabilities • Own and operate? • Engage third parties? (aggregator, broker, cooperative)

44. Conclusions • Purpose: help you understand what’s involved implementing a Carbon Farming Initiative project • Introduction • Guide and using the Reforestation Modelling Tool • Administration • Carbon markets and feasibility

45. More Information • Online:www.cleanenergyregulator.gov.au • Phone: 1300 553 542 • Email: CFI@cleanenergyregulator.gov.au • Watch the webinar