Southern Tablelands Farm Forestry Network |
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Carbon credits Carbon credit trading was first bought to the public’s attention in Kyoto 1996 with the development of the Kyoto Protocol. The Kyoto Protocol outlined targets for reduced carbon dioxide emissions and ways that these reductions could be achieved. One method suggested to reduce carbon dioxide was carbon credit trading. Carbon credit trading is the concept that an emitter of carbon dioxide (for example an electricity company) would be able to purchase carbon from a sequester (such as a tree grower). Therefore the carbon dioxide emitted would be offset by the carbon stored in the trees. This process would turn carbon into a tradable asset. Challenges Currently there are no legal requirements for emitters to offset their carbon dioxide emissions. Aside from this there are a number of legal, scientific and policy challenges that need to be overcome before carbon credit trading can go ahead. These include:
The Greenhouse Challenge Office is doing some work to address these issues including the development of the ‘Greenhouse Challenge Vegetation Sinks Workbook’ This workbook is available by contacting the Greenhouse Challenge on 02 6274 1888 or viewing a summary on the Internet www.greenhouse.gov.au/pubs/sinks.html. Opportunities Carbon credit trading may eventuate allowing tree growers to sell the carbon stored in their trees. It is not expected carbon credit trading will commence until 2008 in line with international proposals. In the meantime the Sydney Futures Exchange is making a concerted effort to commence forward trading of carbon. For more information on this visit their website on carbon trading (www.carbontrading.com.au). NSW State Forests are also leading the way in Australia with a couple of carbon trades already under their belt. They have been in a position to do this given their large size and ability to absorb risk. What tree growers can do now Given that there is no official framework
currently in place for tree growers wanting to sell carbon, and
no legal obligations on emitters to purchase carbon credits it is
wise for tree growers to learn about the issue thoroughly before
getting involved. 1. Stay informed Keeping abreast of new developments, especially policy decisions, legal issues, carbon accounting methods and emerging markets is critical. 2. Decide why you want to plant trees and adopt a no or minimal regrets approach. Don’t plant trees entirely on the expectation you will be able to sell the carbon they will store. Consider the range of benefits trees can offer you bearing in mind that carbon credits may be the ‘cream on the top’. 3. Determine how much carbon you have and how fast it is accumulating and, importantly, be able to prove it. Learn about accepted measurement techniques. The Greenhouse Challenge Vegetation Sinks Workbook is a good starting point as are general forestry training courses in measuring and managing trees. 4. Get organised. It is likely large emitters will not want to deal with individual growers but choose to deal with organisations that can offer larger amounts of carbon for ease of management. Co-operatives of tree growers is an attractive option as are other partnership arrangements. |