Environmental Planting Feasibility Process Explained

Let’s quickly recap, what is an environmental planting carbon project?

An environmental planting carbon project is typically run under the ACCU Scheme’s Reforestation by environmental or mallee plantings methodology. This involves planting, growing and maintaining a permanent forest of native trees & vegetation on land where deforestation occurred over 5 years prior to the project starting. Projects under this method store carbon in trees as they grow, earning carbon credits over a 25-year crediting period. For every tonne of CO2 sequestered, you earn one carbon credit.

A few nifty tricks before you request a feasibility report

Interested in working with CFF to assess the feasibility of an environmental planting project at your farm? Here are a few resources you should check out in advance:

• Understand the basics in our Environmental Planting Carbon 101, if you haven’t already!
• Check out what an environmental planting project will look like with the Carbon Farming Foundation here.
• Watch our Q&A Webinar recording where we break down a environmental planting project.
• Check out our Environmental Planting Guidebook

The Feasibility Process

Here at the CFF, we want to make the process of determining the feasibility of a carbon project as smooth and informative as possible. Our feasibility services unpack all the financial and practical nuts and bolts involved in a carbon project. This advice will help you optimise a carbon project’s returns, costs, and co-benefits.

Let’s break down the steps involved…

Step 1: Assess Your Opportunity 

Have a chat with our project facilitators about your potential project. We offer free, no-obligation back-of-envelope assessments of project yields, costs and profits. If your project stacks up at this stage, then it’s time to move into the in-depth eligibility and business-case analysis offered by our feasibility services. 

Step 2: Pre-Feasibility Presentation and Q&A

Happy with our high-level assessment and want to dig further? We suggest you order a feasibility presentation, so we can give you and your stakeholders a clear financial breakdown of your carbon project. The presentation will:

• Explain eligibility criteria so you can check you tick all the boxes.
• Provide a snapshot of your project’s potential carbon yields, costs, profits, cash flow, risks and success factors.
• A breakdown of our different service offerings and their costings.
• A comprehensive Q&A session, so you clearly understand your next steps and operational & budget considerations.

Step 3: Feasibility Report

If you’re keen to proceed with your project, the CFF can pull together a tailored feasibility report. This in-depth document will help you understand all the nuts and bolts involved in a carbon project, tailored to your land and your operation.

The feasibility report unpacks:

• A comprehensive analysis of the eligibility, suitability, risks & success factors of your carbon project.​
• Tailored recommendations to enhance returns and support your business case.​
• Comprehensive scenario comparisons of yield, costs, gross profits and cashflow – giving you the full picture.
• A simple accompanying guidebook with essential information to deliver a successful and compliant project.

With this report in hand, you can develop a detailed risk assessment and financial budget for your project. Our feasibility report is all you need to get the bank on board with your project.

Outline of the Feasibility Report

Executive Summary: Summary tables outlining how implementation costs, lifetime costs, carbon yield and the carbon price will impact your project’s financial outcomes – including your carbon credit units, gross profit for the project and per hectare, internal rate of return and net present value.

Desktop Assessment: Here we provide the FullCAM heatmap and range of applicable yields, analyse eligibility requirements and provide an outline of any available grants or co-benefit programs.

Cost Drivers: Detailed information on project set-up costs and ongoing compliance costs for different cost scenarios (low, medium and high) with recommendations to harness cost-savings with a DIY approach.

Revenue Drivers: In-depth analysis and recommendations based on carbon yield, carbon price and project permanence.

Performance: This section unpacks key profitability metrics and provides a detailed cash flow model over the 25-year crediting period.

Next Steps: We make the pathway forward clear so you can move forward with confidence and hit key milestones in time to ensure project success. 

Great, how much do those services cost?

Keen to keep your finger on the carbon farming pulse?

Explore our range of educational resources in our Carbon Farming Education Hub where we frequently publish educational articles, webinars, and guidebooks. 

When you’re ready to explore the feasibility of undertaking a carbon project on your property, email us at hello@carbonfarming.org.au or give us a bell at (08) 6835 1140 to be connected with one of our project facilitators.