Farmer representation missing: VFF

Philip HOPKINS

THE National Farmers’ Federation (NFF), while welcoming the findingsfromthe reviewintoAustralia’s carboncredit framework, highlighted concerns about missing farmer representation and support

The federalgovernmentlastmonth released the final report of the Independent Review of Australian Carbon Credit Units (ACCUs), with the government accepting, in principle, all 16 recommendationsby the panel, which was led by former Chief Scientist Professor Ian Chubb AC.

The review noted that the the Australian carbon credit unit (ACCU) scheme aims to remove greenhouse gas from the atmosphere, or to prevent their emission. In agriculture, carbon sequestration is stored in the soil. As cropsphotosynthesise to produce the food, they remove CO2 from the atmosphereand create oxygen. Through this chemical process, carbon is sequestered in the soil.

Carbon farming initiatives allocateone ACCUfor eachtonneofcarbon dioxide abatement. Some ACCUs arebought by the government, some by emitters as offsets, or traded in the domestic market. The panel warnedthatthe schemeneeded adequate resourcing. “Thereisnopractical or cheap alternative,” the panel said.

The reported ACCU spot price had been generally averaging inthe low $30 range since the announcement on contractmilestone exit arrangements until it settled at just over $35 after 23 May 2022.

NFF president, Fiona Simson, said ahigh level of confidence and integrity within Australia’s carbon credit systemwas critical. “Wewelcome the panel’s findings that the scheme is sound, the level of abatement is correct, and the policy is effectively reducing Australia’s emissions,” she said.

“Overall,the NFFbroadly supports regular reviews into the scheme,alongwith changes to clarify governance andimprove transparency. However,some concerns remain.

“Wewereclear that we need to establish askills-based boardto be involved in the governance of ACCUs.While this is in in some ways supported by the new Carbon AbatementIntegrity Committee(CAIC), thereisalack of farmmanagement experience,” Ms Simson said.

TheNFF recommended afarmer representative be presentonthis committee to help farmers and landholders engage withthe consultationprocess. Italso recommended independent and trusted advice be made available, for example through extension officers.

“None of these recommendations were in the review. However,wedosupport the appointment of four members to the CAIC, one being aFirst Nations Australian,” she said.

“Wewill seek clarification on what skills and experiences these four members will requireand advocate that farmmanagement experience be one of them.”

The NFF also has concerns about the review’s recommendations on avoided deforestationand thatno new project registrations will be allowedunder the current method.

“This recommendationfails the NFF’s test about the importance of the review being a technical, not philosophical, assessment. The recommendation also leads the NFF to be concernedthe current methodwill conclude without the replacement being discussed or understood.”

The panel recommendedthatnonew project registrations be allowed under the current avoided deforestation method. “Consideration should be given to developingnew methods that incentivise the maintenance of native vegetation that has the potential to become aforest, as well as maintaining existing forests as risk of land-use conversion,” it said.

The panelsaid land clearing had accounted for asignificant shareofnationalemissions. “The avoided deforestation method is ameans to avoid these emissions,” the panel said.

The reviewnoted thattherehad been relatively limited use of carbon capture and storage nationally or globally. “It is considered to have an important potential contribution to limiting the pace and extent of climate change,” the panel said.