At this point in the development of the carbon trading market there are many risks and uncertainties. Eg What are the opportunities, how much will it cost, what will I make out of it, is it worth doing? Because this is the situation most of our new clients are in, we have developed a process we call Discovery.
“Discovery” is intended to be a relatively short feasibility study with a small fixed budget to collect available information and make preliminary estimates of the potential costs, benefits and issues that may be encountered should a carbon trading project be undertaken.
The suggested budget for the Discovery Project is only a few thousand dollars per property. The higher the budget the more detail and certainty can be achieved. The information collected in the Discovery feeds directly into subsequent stages of work, reducing ongoing costs.
At the end of Discovery you should be in a position to make informed decisions on how to progress and have a good idea of the cost, risks and potential returns. This includes:
- The likely range of potential carbon stock improvements over time.
- The areas of the property that are suited to sequestration projects.
- The magnitude and need to include other carbon stocks and flows like livestock, fertiliser, biomass, feed and supplements and fire that will affect the overall carbon project under CFI.
- What information you have and what additional information and systems will you need to put in place in order to operate an offset project under CFI.
- The costs of future work and potential benefits including sensitivity analysis.
- You will have all the information ready to enable the site soil carbon testing work to commence, when a decision is made to proceed.
Perhaps most importantly if the outlook doesn’t look good then you get to stop or postpone the project before you have had to commit any significant funds.
If you want to get involved in the carbon market but don’t know where to begin, contact us and we can discuss how to get you started.