Land-based carbon farming is the process of capturing and storing carbon in trees or soil. By adopting practices that increase the rate at which carbon dioxide (CO₂) is drawn from the atmosphere, landholders can register carbon projects to earn tradeable carbon credits.
By planting trees and increasing carbon levels in your soil, you help reduce atmospheric CO₂, a process known as carbon sequestration. The result? Improved soil fertility, higher productivity, and enhanced resilience against challenges like drought.
Why Does it Matter?
Carbon farming builds productive and resilient farming systems while creating access to the carbon market by generating Australian Carbon Credit Units (ACCUs). Here’s why you should consider it:
1. Healthier Farms, Higher Productivity
By adopting carbon-friendly practices, landholders can:
- Capitalise on underutilised land
- Access carbon neutral and net zero market opportunities
- Reduce input costs
- Enhance soil health and water retention
- Increase in productivity
2. Diversified Income Streams
By generating carbon credits, you can add a new revenue stream, diversifying the services that your land provides.
How Do ACCUs Work?
In Australia, carbon credits are issued by the Clean Energy Regulator (CER). One credit represents one tonne of CO₂e (carbon dioxide equivalent) stored or avoided through eligible practices. Here’s how it works:
1. Establish a Carbon Project
Make changes to how you farm, restore, or manage your land to generate measurable climate benefits. Work with us to undertake a feasibility assessment to see if carbon farming would be suitable for your land. Once this is completed you can register and establish your carbon farm in accordance with the chosen method.
2. Verify the Impact
Submit regular project reports to the CER to verify the amount of carbon stored.
3. Earn ACCUs
Once the CER has reviewed your reports, they will determine the amount of ACCUs you have achieved. You will receive credits for every tonne of CO₂e captured or avoided.
4. Sell or Hold Credits
Once you have your ACCUs, it’s your choice what you do with them. You could sell your credits to the government, businesses, or individuals looking to offset emissions, or hold them for future market opportunities. Certified carbon offset trader, Clima, have reported an 24% price increase in ACCU production in 2024, with demand set to increase in the future.
This might sound technical, but the principle is straightforward: thoughtful land management yields measurable climate benefits, and these benefits translate into real financial value.
Beyond the Value of Carbon Credits
Carbon farming isn’t just good for landholders, it has a ripple effect on biodiversity and your broader community. Projects often lead to:
- New habitats for native species, promoting biodiversity.
- Stronger rural economies, with landholders reinvesting in their local communities.
- Climate resilience, reducing the impacts of extreme weather events on agricultural systems.
Getting Started with Carbon Farming
Interested in exploring carbon farming but unsure where to start? The Carbon Farming Foundation is here to help.
We offer a range of carbon farming services to meet your needs, including:
Our expert team are here to help guide you through the carbon credit process, offering personalised support to meet your individual needs. We also have a range of educational resources to simplify complex terms so you can learn more about carbon farming.
Want to see how carbon farming could benefit you? Get in touch with our experts to have a free, no-obligation chat: https://carbonfarming.org.au/contact
