Carbon and Sustainability Accounting Update

As talk of Australian Agriculture meeting emissions targets increases, clarity around valid frameworks and methods for the industry to work towards this goal, still seems far from clear.

For farm businesses interested in monitoring their emissions on-farm at the initial scope level, there are options such as creating a Carbon balance sheet for their business enterprise, based on the University of Melbourne calculator.

The Cool Soils Initiative, run by researchers, extension officers and private bodies, is another Carbon accounting option. By signing up to the Cool Soils Initiative through a local farming systems extension group (i.e. FarmLink, Riverine Plains, Central West Farming Systems or IREC), growers become part of a free of charge emissions benchmarking program. Notably, the Cool Soils Initiative does not involve signing up to a long-term (e.g. 25 year) Carbon project with the goal of producing saleable Carbon credits. Instead, the Cool Soils Initiative allows growers to opt out at the end of any given year. Its aim is to assist growers to access markets which may be restricted to producers who can demonstrate a low net emissions ‘footprint’. More information can be found at the following website Home - Cool Soil Initiative (csu.edu.au).

Regional grants are available for enhancing vegetation areas of properties. Accounting for Nature (AfN), is a voluntary certification standard, where Environmental Condition Scores (eCOND) can be assessed and assigned, with the aim of showcasing the environmental considerations in line with an agricultural production system, where a Production Condition Score (pCOND) can also be determined for the same property.

An environmental account breaks the environment into various assets and produces a different eCOND for each environmental sub asset, such as soil and vegetation. The first year is a base line eCOND, which is then measured at five yearly intervals, or more frequently if preferred by the landholder. There is a confidence level for each accuracy of eCOND, to increase transparency of information, part of which is in case these are considered as potential new offset options, by environmental markets in future. An information sheet for environmental accounts is supplied to the public and accompanies all AfN environmental accounts. The idea behind these appears to be that historic practices can be accounted for under this method, contrary to soil type Carbon projects which often require “new activities” to commence a project.

Rural Management Strategies continues to monitor what lenders and/or buyers of Australian Agri-products may require in future, with respect to Carbon and Sustainability accounting.