Tagged with Carbon Trading

With carbon trading conservation pays for itself

tasmania carbon tradingIn a place like Tasmania we cannot escape nature because it’s all abound.

Nature is a great provider. It gives us clean air, clean water and productive soils. It pollinates our crops, and gives us places to recreate and places for inspiration. People value nature for cultural connection to place, for the value it brings the community, for the value it brings our economy and for itself.

The Tasmanian Land Conservancy has been working to make explicit some of those connections.

In terms of the economic value, in 2010 TLC embarked on the New Leaf Project, acquiring 28,000ha of native forest to tap a new vein of possibilities for conservation business. Such a large tract of native forest, partly logged but largely intact, offered the chance for us to seriously explore sustainable incomes from our reserves.

This coincided with the evolution of a carbon market, globally and domestically. The emergence of the market was not always straightforward due to policymaking pressures and the complexity and enormity of the system. However, the TLC, with the help of others with similar tenacity, persisted with the process and pursued the goal of entering the carbon market.

Across the New Leaf properties, including Five Rivers Reserve in Tasmania’s Central Highlands near Bronte Park, the New Leaf Carbon Project is in place in 12,130ha, with the remainder managed for ecosystem health and species diversity.

Having successfully traded in the voluntary international market by partnering with Virgin Australia, the TLC is now operating in the domestic voluntary carbon market.

This market includes airlines, banks, manufacturers and other corporates wanting to buy carbon credits to offset their emissions. In that way they demonstrate corporate social and environmental responsibility to clients and shareholders. Participants in the voluntary scheme include, Virgin Australia, Origin Energy and Bendigo Bank. However, the TLC is one of few environment groups in the carbon market also supporting nature conservation activities. To read more click here.

Carbon trading: the opportunities and pitfalls in Australia

Carbon-Trading-sustainabilityIt might be early days for carbon trading in Australia but many farmers and graziers are already trading or exploring how they can trade carbon.

In April 2015, the Clean Energy Regulator (CER) conducted the first “reverse” auction to buy carbon credits with the second auction being conducted in November 2015.

In a recent article by Thynne & Macartney it states while there are benefits, participating in the ERF and entering into a contract with the CER are not without risk.

There are a number of methods landholders and producers can implement to earn tradeable Australian Carbon Credit Units (ACCUs) including:

  • Forest regeneration – the regeneration of native forests that have been suppressed by livestock or clearing.
  • Avoided deforestation – the preservation of native forest previously approved for clearing (therefore avoiding the emissions that would have resulted from clearing).
  • Savannah burning – fire management in the early dry season in northern savannas is aimed at reducing the incidence and extent of larger, higher intensity late dry season fires.
  • Feeding nitrates to beef cattle – replacing urea lick blocks with nitrate lick blocks for pasture-fed beef cattle.

These auctions are funded by the Federal Government’s Emissions Reduction Fund (ERF). The ERF is a scheme designed to help Australia meet its emissions reduction targets. Through these two auctions the Federal Government has now committed $1.217 billion of the $2.55 billion set aside for the ERF.

The next auction is set for 27th and 28th April 2016 and a further auction set for the final quarter of 2016, now is the time to consider whether your business can benefit.

To view the article in full CLICK HERE.

GlobalData Forecasts Increasingly Volatile Carbon Market

The price of carbon credits traded in regional and national emissions markets worldwide will become increasingly volatile and difficult to accurately forecast through 2015, according to a report by GlobalData.

GlobalData said the prolonged European sovereign debt crisis, a glut of carbon credits and uncertainties under the Kyoto Protocol are expected to keep prices low through 2012. The recession in the European Union, which operates the EU Emissions Trading Scheme, will cause emissions to grow less than expected through this year.

Economic conditions in the eurozone and outcomes of the Kyoto Protocol will determine the global carbon prices between 2013 and 2015, GlobalData said.

Read the full article here