When deciding whether to engage in carbon opportunities, producers should consider a range of options, including the implications of keeping the carbon credits on-farm or selling them as offsets to a third party.
The decision around how to become involved in CN30 (carbon neutral by 2030) should be based on what is best for the individual business’s prosperity and should be underpinned by a solid business plan which maps out the business’s goals and how it will achieve them.
Here’s a look at some of the carbon farming opportunities currently available for Australia’s red meat supply chain.
Under the ERF, producers can participate in carbon abatement projects on-farm to reduce emissions or increase carbon storage through activities such as regenerating permanent native forest, herd management practices or avoiding clearing.
These projects enable producers to generate Australian Carbon Credit Units (ACCUs), which they can sell through a variety of pathways to boost profits. Alternatively, they can retain the credits on-farm to meet the requirements of carbon neutrality and sustainability certifications to provide an edge for their business.
The list of ERF methodologies applicable to red meat producers and processors have been listed online by the Clean Energy Regulator. There are a number of tools to help red meat producers decide which ERF project methods are suitable for them, including:
- CSIRO’s landscape options and opportunities for carbon abatement calculator (LOOC-C).
- AgriFutures’ Carbon farming pocket guide (coming soon).
- State-specific resources such as Queensland’s Carbon Farming Resource Handbook for land managers and Agriculture Victoria’s Making Cent$ of Carbon and Emissions on Farm.
Australian states have started to introduce schemes to incentivise participation of land holders in ERF projects, such as Queensland’s Land Restoration Fund. Producers and processors are encouraged to reach out to their state government departments to understand what state-based opportunities might be available to them.
Producers deciding to undertake an ERF project should also talk to a trusted advisor or an expert to understand the opportunities and risks associated with this decision.
Some producers in Australia have also chosen to sell carbon credits in international carbon markets.
While there can be less stringent auditing requirements associated with generating carbon credits under some international frameworks – meaning it’s easier for producers to start earning money from their carbon farming projects – there is some concern that the carbon credits generated through some of these systems may lack integrity.
Producers can also capitalise on carbon by pursuing a carbon-neutral position – a position which can apply at multiple levels, from products and businesses to whole industries and countries.
To develop a carbon-neutral or low-carbon position farm or business, the first step is to create a carbon account.
Carbon accounts track the net greenhouse gas (GHG) emissions produced and total carbon sequestered on farms each year.
An inventory of livestock, all purchased inputs and outputs such as fuel, and measurements of carbon stored in vegetation and soil on farm must be kept to track emissions and carbon as part of the carbon account.
Carbon accounting calculators such as the Sheep & Beef GAF are then used to calculate GHG emissions and the Full Carbon Accounting Model (FullCAM) is used to estimate the annual change in carbon within vegetation and soils from this information.
If carbon accounts demonstrate that net greenhouse gas emissions (GHGs emitted minus carbon stored) are zero, then that farm or business can be deemed to be carbon neutral.
Depending on what the farm and business goals are, certification of the carbon-neutral position could be pursued.
The next section explains the certification process as it applies to carbon-neutral products and supply chains. The process of carbon-neutral certification is similar at the farm and business level.
Carbon neutral red meat products are already available in Australia. To ensure consumer trust in carbon-neutral brands, carbon-neutral certification is required.
Presently, this certification can be achieved through the government’s Climate Active certification framework or through alternative third-party frameworks such as the Carbon Reduction Institute’s NoCO2 Carbon Neutral Program.
Achieving certification for a supply chain or product involves:
- Calculating the carbon footprint of the full product life cycle.
- Reducing emissions where possible.
- Sequestering carbon on farm, purchasing carbon credits to offset remaining emissions, or both.
- Conducting audits in accordance with the requirements of the relevant certification body.
A range of new opportunities are emerging for the red meat industry around low-carbon and carbon-neutral supply chains.
In a process known as insetting, carbon-neutral supply chains can now use carbon storage projects within supply chains to offset or inset emissions in other components of the same supply chains.
These credits are transferred along the supply chain and can be attached as an attribute of premium-branded products that are sold to consumers.
This process ensures that credits are retained in the red meat industry to be used to offset future emissions rather than being sold to other industries, where they can become unavailable for periods of up to 100 years.
Coles has become the first major Australian supermarket to offer a carbon-neutral beef product line and is actively working with producers to reduce their GHG emissions while boosting productivity through herd management practices and genetic selection.
More opportunities for producers to be rewarded by being involved in premium low-carbon and carbon- neutral product lines are expected as emissions reduction technologies and frameworks evolve.
The Australian Government’s Agriculture Stewardship Package aims to incentivise producers who adopt practices to improve biodiversity and natural capital on farms.
Through five different components, the package aims to develop a mechanism where farmers are rewarded for their efforts in adopting on-farm biodiversity practices that also benefit the land, farms, the broader community and the nation’s sustainability commitments.
These programs encompass:
- Developing arrangements to reward producers for establishing more biodiverse carbon sequestration plantings.
- Rewarding producers for protecting and enhancing on-farm remnant native vegetation.
- The development of an Australian Farm Biodiversity Certification Scheme that will certify farms for their biodiversity management and allow biodiversity-friendly producers to showcase their stewardship of the land to communities and markets.
- The creation of the NSTP to help producers participate in environmental markets by allowing them to plan and sell biodiversity projects in one place.
- Creating the Australian Agriculture Sustainability Framework (AASF) to clearly communicate the sustainability status and goals of Australian agriculture to communities and markets
- A policy statement setting out the role of Australian agriculture in protecting biodiversity stewardship and a vision for an operational voluntary biodiversity market.
Building sustainability alongside profit
To remain proactively competitive among the rapidly evolving regulatory and market levers described above, the Australian red meat industry has made ground-breaking commitments to ensure its sustainability.
These commitments take a productivity-led approach designed to see industry prosper for generations to come and the achievement of these commitments will be demonstrated through recognised environmental stewardship credentials and certification processes.
Together with industry, MLA has committed to not only ensuring the Australian red meat and livestock sector is carbon neutral by 2030 (CN30), but to doubling the value of red meat sales by that very same year.
Through CN30, MLA and its partners across government, research, and industry are developing the science, technology and adoption pathways to reduce GHG emissions and sequester carbon in soils and vegetation on-farm.
The framework for CN30 activities is outlined in MLA’s CN30 Roadmap and encompasses practical tools and actions that will drive GHG emissions down and carbon storage up in the industry, while supporting the adoption of these initiatives through integrated management systems and leadership building.
Alongside the CN30 initiative, MLA is leading the Australian Government’s Environmental Credentials for Grassfed Beef project.
This project involves both producers and the value chain in the development of environmental credentials around biodiversity, drought, tree cover, grass cover and carbon for the beef industry.
Once defined, these credentials can be scientifically verified and will enable grassfed beef producers to demonstrate their environmental performance, meet the requirements of certifications necessary for sustained market access and enable advantageous positioning.
In addition to this, MLA also has managerial and secretariat responsibilities for the Australian Beef Sustainability Framework (ASBF) and the Sheep Sustainability Framework (SSF) established by industry and directed by the industry-appointed sustainability steering groups.
The frameworks aim to meet the changing expectations of customers, consumers, investors and other external stakeholders by identifying opportunities for industry to improve and showcase its sustainability credentials through tracking performance against industry priorities.
