1. Regional Carbon Trading Model A Voluntary System Louisa Kiely Carbon Farmers of Australia

2. Carbon Farming Expo & Conference Mudgee 17-18 November 2007 3. Soil CarbonOn The National Agenda I am hearing more and more about the possible potential of enhancing the carbon stored in our soils [The Government will] investigate how better soil management can be part of Australias response to climate change. PM Kevin Rudd 4 March 2008 4. UN FAO calls for Soil Carbon Credits "It is essential to increase the resilience of present food production systems... We urge governments tocreate opportunitiesto enable the world's smallholderfarmers. toparticipate in , and benefit fromfinancial mechanisms and investment flowsto supportclimate change adaptation, mitigationand technology development 181 countries The High-Level Conference on World Food Security: the Challenges of Climate Change and Bioenergy, convened by UN Food and Agriculture Organisation (FAO), 3-5 June, 2008 5. Soil Carbon must be in! Australia is well positioned to further increase carbon dioxide removal by soil,due to the sheer size of its land mass and the ability of its farming sector to adopt new management practices .Professor Ross Garnaut FINAL REPORT 6. Soil Carbon - DONT WAIT! The mitigation gains are potentially so large that it is important for Australia tocommence work on program design and implementation even before the issues of coverage , national and international, are fully resolved. Professor Ross Garnaut FINAL REPORT 7. STOP PRESS TIM GETS IT! "Atmospheric Cleansing "What plants do is pull carbon dioxide from the atmosphere and sequester that carbon dioxide in measurable amounts in the biosphere. 8. The technologies then to do that are very straight forwardHolistic management, for example, is practised over about 10 million acres globally demonstrably increased carbon content in soils by up to three percent. And they give you better productivity, better soil moisture retention, better biodiversity protection, and these approaches are not expensive. " Were we able to increase carbon content of soils in the worlds rangelands by a mere two percent we could draw down hundreds of gigatonnes of carbon dioxide to sequester in those rangelands. Atmospheric Cleansing 9. In my view, the global carbon trading scheme is absolutely necessary in order to deal with this crisis. Carbon TradingAbsolutely Necessary 10. UN Food & Agriculture OrganisationConservation Agriculture Carbon Offset Consultation Purdue University, West Lafayette, Indiana,28-30 October, 2008 Mexico Columbia Brazil India Australia Ontario Manitoba Denmark British Columbia China America South Africa Germany Alberta Saskatchewan 11. Conservation Agriculture Carbon Offset ConsultationOfficial Communique 12. Official Communique 13. Conservation Agriculture Carbon Offset ConsultationOfficial Communique Official Communique 14. Official Communique 15. Official Communique 16. SOILS UNIQUE ROLE To Hold the Line? To Aborb the Legacy Load. 17. 18. If we stopped emitting CO2 today? 19. Legacy Load of CO2 20. If we stopped emitting today

The carbon dioxide thats in our atmosphere today even if we were to stop emitting it tomorrow would live for many decades, centuries and beyond...

Chair of IPCC* Rajendra Pachauri *Intergovernmental Panel on Climate Change Sir David King Britains Chief Scientist Dr Susan Solomon U.S. National Oceanic and Atmospheric Administration Professor Ross Garnaut February 2008 AGOMarch 2005 21. Neither Clean Coal Nor Nuclear Power Nor Solar Energy Nor Wind Turbines NorLightbulbs can remove the Legacy Loadof CO2. 22. PHOTOSYNTHESIS CAPACITY DEPLOYMENT CRITICAL MASS ONLY AT MASSIVE AT FULL AND SIGNIFICANT CAN TACKLE THE LEGACY LOAD 23. 7 planets covered in forest Would sequester the CO2 already in the atmosphere 24. 25. 26. Increase Soil CarbonImproved Soil StructureBetter Water UseReduced SalinationSoil FertilityBiodiversityHealthy ProfitLess ErosionThe Benefits of Soil Carbon Credits Healthy ecologySoil Carbon CreditsHealthy Farm Families Stronger Rural Communities 27. Carbon Offsets

Two Markets:

• Compliance

• Voluntary

Compliance

• Cap & Trade

• Baseline & Credit

28. Compliance Market

2006 - US$31 billion

2007 -US$64 billion

Doubled in value

Voluntary Market tripled!

• (But still small)

29. Voluntary Market

2006 - US$97 million

2007 -US$331 million

65 million tonnes CO2e

• • 165% increase on 2006

Over-The-Counter sales up 300%

Average Price

2006 - US$4

2007 - US$6

Prices ranged from US$1.80/t to US$300/t

30. Voluntary Market

Over-The-Counter -Popular Product:

• Energy efficiency

• Renewable energy

• Methane destruction

• Forestry/Land Based Projects

Buyers purchase offsets that most closely resemble those of the compliance market rather than indulge in the sort of experimentation and innovation that many believe the markets offer.

• • • • State of the Voluntary Carbon Markets, Ecosystem Marketplace and New Carbon Finance

31. Benefits of Voluntary Market

1. Possibility of Broad Participation

• enables those in unregulated sectors or countries that have not ratified Kyoto to offset their emissions.

2. Preparation for Participation

- enables companies to gain experience with carbon inventories, emissions reductions and carbon markets..

3. Innovation and Experimentation

-project developers are more flexible to implement projects that might otherwise not be viable (e.g. projects that are too small or too disaggregated).

4. Corporate Goodwill

-corporations can benefit from the positive public relations associated with the voluntary reduction of emissions.

32. Regional Business Model for Carbon Trading Community Wind Farms Biofuels Big Emitters Recycled Biomass Community Education/ Involvement Employment Sustainable Farming Restored Farm Ecology 33. Pathway to Regional Sustainability

DESIRED OUTCOMES

Initiate a Carbon Market Pilot in Region

Improve understanding of carbon/climate issues in Region.

Integrate carbon sequestration research relevant to Region.

34. Principles

Climate change demands new approaches

Market instruments are needed to bridge gap between long-term technology solutions and current run away emissions.

All citizens wish to be part of the solution.

Investment is neededto guide the solution.

35. Knowledge Needs

Identify, verify and apply GHG measurement and technologies - re soils and methane/nitrous oxide

Farmers provide technical input regarding agricultural practices used in the CMA region toassist in developingsoil C protocols.

36. How tos

Climate change overview

CMA wide carbon baseline levels

Carbon sequestration practices and emissions related activities

Measuring and modeling net carbon sequestration - calculators

Carbon sequestration markets

Calculate economic benefits

37. Public Meeting Agenda

History of the District

Success Stories from within the District

Maps of Resource Concerns

Trends in land use and condition of the resources

Public input to what issuesthey see as most criticalto the district

38. 39. Visioning The Ideal

Your vision of what your district could look like

The desired condition of your district

The IDEAL state of the resources in your district

40. Objectives

Save the Family Farm

Maintain and Enhance Cropland Productivity

Protect Farmland from Conversion to Non-agricultural Uses

Protect Water Resources

Maintain Regionalsuccess in face ofclimate change byaiming for self-sufficency

41. Collaborative Research

These efforts need to be supported

Baseline scores by catchment

Potential carbon farming methods

Protocols and standards

Verification strategies.

Refine models/calculators

42. Other support

Farmer outreach.Information on:

Known carbon farming methods

Innovation thinking

Market knowledge and information.

43. Outcomes

Carbon registry - track all carbon sequestered by CMA area

Lead to a carbon neutral CMA.

Template for others to follow.

44. Way forward for companies

Commit to levels of reduction to protect environment and protect shareholder liability.

Community support leads to better labour market, long term investment in climate stablization with best win/win solution for Regional Australia

45. Options to Achieve

Fund credits.Invest in climate change and investment fund viaprovisional carbon credits. (PCC)

Part of credit is returned to farmer, part is invested back into CMA based climate mitigation technologies andprograms

46. Possible offsets

Soil carbon

Biofuel

Energy Efficiency

Renewable Energy

47. Project Eligibility

Start date

Credit duration period

Real, demonstrable, quantifiable

Not required by law

Ownership

Counted once

Verified by third party.

Occur

48. Agriculture Carbon Pollution Reduction Scheme Pilot

Engage a group of 30 farmers3years

Train in Carbon Farming

Set Emission reduction targets. And caps

On-farm baseline measurements. Emissions and sequestration

Undertake Carbon Farming

Baseline again

Engage local buyers forprovisional credits to furtheron-farm research

49. Outcomes

Develop protocols, templates and Standards concurrently.Share with others

Developeducation modules.

Farmers learn climate change skills

Develop soil carbon calculator/test against modelling

Develop skills in MMV.

Provisionalsoil carbon credits traded on voluntary market.

50. International collaboration

Liaise with International Communities of Practice - (CoPs) sanctioned by FAO

Liaise with Canada,USA.

Will ensure International compatibility for soil carbon credits in next round of Kyoto.

51. Future Farm 52. Next steps

Strategy meetings in CMA area

Meet withDevelopment boards

Companies

Farmers

Fundraising

Please see me for more details

53. Practical Carbon Farming Advice

Whole Farm Carbon Planning

Access All Expert Practioners

Carbon Communications & Marketing

Climate Change in Agriculture

You single-handedly barnstormedthe issue onto the National agenda!

• Matt Cawood, Senior Writer, The Land

• www. carboncoalition .com.au

• http: //carboncoalitionoz . blogspot .com

54. [email_address]