Farming trees for carbon
Trees take up carbon dioxide from the atmosphere as they grow, storing carbon in leaves, stems, bark and roots. If you are able to grow forests, you may be able to take advantage of emerging markets for carbon.
Planning forest carbon sinks
As well as carbon and timber, well planned forests may provide benefits such as reduced salinity, habitat for plant and animals and improved water or soil quality. Like most farming enterprises, successful planning takes into account many factors such as legal constraints, markets, productivity and risks to carbon storage such as fire, pests and disease. Detailed information on planning forests for carbon is available at Growing Trees as Greenhouse Sinks - An Overview for Landholders .
The price you can get for your carbon
Australia does not have a regulated, national market that supports the trading of carbon. The Commonwealth Government is developing an Australian Emissions Trading Scheme which will create a regulated market for carbon. See Emissions Trading .
For landholders, the price you may get for your carbon in current markets may depend on how well you can demonstrate the management of your carbon in the future and the additional environmental benefits it can provide. Predictions of carbon storage can be made before a forest is established or while it is growing - see National Carbon Accounting Toolbox .
Existing carbon markets
1. Providing land for revegetation
There are a number of options for landholders to lease their land for long term revegetation that may provide income without the risks, costs and responsibilities of forest management. These agreements may include carbon sequestration rights that are recorded on the title of the land.
For example, CO2 Australia Limited establishes mallee eucalypts on farmland for carbon sequestration and other benefits such as reduced salinity. CO2 Australia pays the landholder for the use of the land and gains the right to the sequestered carbon.
2. Marketing a 'carbon pool'
Landholders could sell carbon through a carbon pool or brokering service.
For example, CarbonSMART (Landcare Australia Ltd) is trialling the concept of a pool of carbon credits for land that is revegetated. To be eligible, the land must have been clear of forests prior to 1990 (this is the date used for the Kyoto Protocol). This pool of carbon is then available for purchase by companies to offset their development or other carbon emitting activities. This is currently being done in NSW with a view to operating throughout Australia. See www.landcareonline.com .
An example of a carbon market is purchase of clearing rights. The Carbon Pool Pty Ltd has purchased clearing rights on Queensland properties and on-sold them (to Rio Tinto) as carbon credits. This project was approved and verified under the Commonwealth Government's Greenhouse Friendly initiative.
Note that there are risks associated with farming trees for carbon as we do not yet have a national carbon market and the characteristics of any offset program are yet to be resolved. A market for carbon sequestering within the soil is not likely to be established in the near future.
Further information about forests as carbon sinks
Further information on growing forests as carbon sinks is available on the Department of Climate Change web site.
R Lethbridge, Meandarra, Qld.
Photo Andrew Tatnell
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