Launched at the 2022 Australian Farm Institute (AFI) Roundtable: ‘Cultivating ESG Capability’ in Canberra, a new online tool offers a practical resource for landowners and primary producers to navigate the tricky landscape of carbon choices.
The Carbon Opportunity Decision Support Tool forms part of AgriFutures Australia’s $2 million investment in carbon initiatives, designed to address key knowledge gaps and build understanding of carbon management, how farmers, growers and supply chain businesses can participate in carbon projects.
AgriFutures Australia Managing Director, John Harvey said the investment aims to build producer capability to better understand the opportunities and risks in the increasingly complex but vital carbon space.
“Carbon is complex – understanding pathways is critical to success and AgriFutures has an important role in connecting rural industries to the latest insights so they can make informed decisions about their future,” said Mr Harvey.
“Investing in carbon RD&E is our commitment to providing new knowledge and supporting farmers to better understand the benefits and risks of carbon farming projects, including soil carbon and native vegetation management.”
The Carbon Opportunity Decision Support Tool, developed by the Australian Farm Institute, guides users through questions relating to risk appetite and their business goals.
The tool explains which carbon opportunities may be available for a producer and encourages users to consider the potential benefits and costs of different carbon projects for their farming businesses.
Opportunities covered in the tool include participation in the Australian Government’s Emission Reduction Fund or private carbon markets, access to sustainability linked loans and carbon neutral certification, as well as productivity gains.
Links are also provided to case studies and complementary resources such as the AgriFutures Australia Farmer’s handbook to on-farm carbon management.
With a lot of ‘noise’ about carbon opportunities, the key message of the tool is to know your options and make good choices, explained AFI Executive Director, Richard Heath. (Article Attrition)
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How does it work?
The tool covers the following opportunities for carbon farming by taking users through a decision-tree questionnaire:
- The Emission Reduction Fund
- Private carbon markets
- Sustainability linked loans
- Carbon neutral certification
- Productivity gains
Rather than closing off pathways before providing adequate information, the tool asks users to 'choose their own adventure' and encourages consideration of the pros and cons of these options and their interconnection. You can backtrack or restart at any time.
Given the complexity and frequency of change in the carbon space, the tool does not take every factor into detail. To be applicable across commodity types, geographical areas and business structures, it is by design general in nature.
To help make sense of this complex environment, these questions focus on business situation, future plans, risk appetite and attitudes rather than the specific management practices or financial performance of an enterprise.
While the tool is being regularly reviewed and updated, users should be aware that some emerging opportunities may not yet be covered.
The CODST has been developed by the Australian Farm Institute (AFI) with funding from AgriFutures Australia. Please send any feedback on the tool to the AFI at info@farminstitute.org.au
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