The carbon market and what it means for Aussie businesses and producers

Producers across Australia are wondering how the new carbon market will affect them. There is a lot of speculation about how producers can make money from this by changing their farming practices, and many people are unsure about what the legislation actually entails. In this blog post, we will explore these questions and provide some answers for Australian producers. We will also discuss soil carbon farming and its potential to reduce risk for producers while generating extra income. If you’re a producer who’s curious about the carbon market, then this blog post is for you.

What are Carbon Markets?

In order to understand the carbon market, we must first understand what carbon is. Carbon is a chemical element that is present in all living things. It is responsible for the storage and transport of energy in plants and animals. Carbon dioxide (CO2) is a gas that is released into the atmosphere when organic matter decomposes. It is also produced when fossil fuels are burned. When too much carbon dioxide accumulates in the atmosphere, it can cause climate change.

Australian Carbon Credit Units

The carbon market is a new system for regulating the release of carbon dioxide into the atmosphere with demand from governments and heavy greenhouse gas emitters and supply from Australian agricultural enterprises. The Carbon Farming ACT (2012) was the market catalyst coupled with a $2.5 Billion investment from The Commonwealth of Australian to purchase carbon offsets towards emission reduction targets. The Australian Carbon Market allows businesses and producers to sell Australian Carbon Credit Units (ACCUs) to other businesses or governments. Australian Carbon Credit Units can be used to offset greenhouse gas emissions from activities such as driving or flying. The government sets a limit on the amount of carbon dioxide that can be released into the atmosphere each year, and businesses or farms that exceed this limit must purchase additional carbon credits to offset emissions. This is creating demand from the agriculture sector to create ACCUs.

The Carbon Market and Soil Carbon Farming Benefits

The carbon market presents an opportunity for producers to assist the Australian Government and industry bodies such as National Producers Federation and Meat and Livestock Australia meet emission reduction targets while generating extra on farm income. Producers who practice soil carbon farming can sequester carbon in their soil, which means they can capture carbon dioxide from the atmosphere and store it as soil organic carbon in the ground which improves soil health and productivity, resistance to and resilience from drought. When this carbon is sequestered, it can be sold as an ACCU to businesses or governments. This allows producers to improve their primary productivity and bottom line via making money from the sale of ACCUs.

The Carbon Farming (2012) legislation also provides incentives for producers who are interested in learning more about soil carbon farming and its potential to generate extra income and reduce risk. The government is offering funding for training and research into soil carbon farming, as well as grants to producers who are actively engaged in the practice. It’s important for producers to be aware of what carbon markets mean for them, so they can take advantage of this new opportunity.

If you’re a producer who wants to learn more about soil carbon farming and the carbon market, there are several resources available. You can contact the Emission Reduction Fund or CarbonLink for more information.

Helping Producers Reduce Risk & Generate Extra Income

The new carbon market presents a great opportunity for Australian producer to reduce business risk and generate income. By understanding the carbon market and its regulations, producers can take advantage of this new system and potentially increase their productivity and profits. Soil carbon farming is an effective way to sequester carbon and make money from the sale of ACCUs. At the end of the day, carbon markets are a great opportunity for Australian producers to reduce risk (via improved land management and diversification) and to make money from changing their farming practices.

With the right resources and guidance, producers can take advantage of this new system and benefit from it. So don’t wait any longer.

For a free consult on the potential of your property to generate ACCUs through soil carbon farming contact us.


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