Article says ‘Carbon Link revived by $50m’… if only this were true

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Eight years of hard work have paid off. There is now a gross of around $50 million available, the bulk of which is destined to go to landholders who sequester soil carbon over the next 10 years

In April, Carbon Link partnered with Corporate Carbon and Regenerative Australian Farmers (RAF) to present two soil carbon projects* totalling millions of tonnes of CO2e for a bid in the Reverse Auction* held by the government on 15-16 April 2015. The tonnage was based on the aggregation largely coming from this newsletter.

 

The Good News

We were successful in having one soil carbon project totalling several million tonnes of CO2e agreed to be PURCHASED by the government on delivery over the next 10 years.

 

Time to stop here and clarify the jargon

 

*Soil carbon projects
A property level detailed project which is registered with the Commonwealth Government under rules defined in the CFI legislation. A project must adhere to the strict guidelines outlined in an approved methodology.

*Methodology
A methodology is a lengthy legislated document outlining all the rules associated with baselining and measuring carbon dioxide abatement activity. The soil carbon methodology is about 250 pages long and contains about 35 pages of equations.

*Reverse auction held by the government
The Australian Government’s Emissions Reduction Fund (ERF) provides a $2.55 billion funding pool as incentives for the development of eligible greenhouse gas (GHG) abatement projects. Emissions reduction projects compete on price for a contract to deliver Australian Carbon Credit Units (ACCUs) with the Clean Energy Regulator at an ERF Auction. The first auction was run from 9am on 15 April to 5 pm on 16 April 2015.

 

What the successful bid actually means

The successful bid in the Auction secured a forward price for soil carbon credits for some 3.5 million tonnes of ACCU’s. The bid was based on the expressions of interest put forward to Carbon Link and Regenerative Australian Farmers (RAF), which totals 2.9 million ha and has the capacity to sequester an estimated 1.6m tonnes of CO2e per annum. Those already registered (the Interest Group), will have first crack at the income.

Carbon Link is working with carbon market solution providers Corporate Carbon, who offer a pathway to securing an Emissions Reduction Fund (ERF) contract without requiring farmers to make any up-front cost commitment. Corporate Carbon provide ERF project and risk management services to remove the largest risk for land holders. This means there is no penalty for properties which fall short on sequestration expectations due to drought, fire or any other reason.

There may be an opportunity for new properties to be added to the interest group over the next couple of months (register here). We will continue to communicate directly with the properties which are registered as we progress to project establishment stage.

Trading CO2 from soil carbon sequestration is now a reality.


Terry McCosker

RCS Director and Carbon Link Executive Chairman

 

QCL Article - Carbon Link revived by $50m by Matthew Cawood