Upload a submission
Soils and Vegetation Team
Department of Industry, Science, Energy and Resources
CANBERRA, ACT 2601
By email: ERFForests@industry.gov.au
25 January 2022
Dear Soils and Vegetation Team,
Proposed Amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 relating to
Emissions Reduction Fund native vegetation projects
Thank you for the opportunity to input into this consultation on potential changes to the Carbon
Credits (Carbon Farming Initiative) Rule 2015 to introduce a new category of excluded offsets projects
under the Emissions Reduction Fund and to improve monitoring of compliance with rules to manage
pests and weeds.
About Greening Australia
Greening Australia is an environmental enterprise that tackles the challenges facing Australia’s unique
and diverse landscapes in ways that work for communities, economies and nature.
We have been conserving and restoring Australia’s landscapes since 1982. At Greening Australia, we
work to solve complex environmental problems through restoration and conservation at a large-scale
in partnership with landholders. Our programs and projects span the breadth of the country and
protect hundreds of native species.
Specifically, Greening Australia undertakes large scale ecological restoration through revegetation and
has a significant forward pipeline of work which will benefit regional communities across Australia.
Greening Australia is currently attracting investment in restoration and biodiverse carbon projects
which are supporting landholders and regional communities and generating multiple financial and
non-financial benefits.
Greening Australia is opposed to the proposed amendments to the legislation for the reasons
outlined below. If the amendments are progressed by the Australian Government, we recommend
changes to the size of land included in the new exclusion and introducing a clear criterion for veto.
Greening Australia supports the intent of additional requirements for monitoring of pest and weed
management.
The importance of Landholders accessing the market and making decisions
The consultation proposes an important precedent which, if passed, will potentially restrict/prevent
landholders making choices about their own land and create barriers to landholders to access a
market. Greening Australia is of the view that, in general, barriers should be removed to improve
access to new markets and to share the benefits with regional communities, while supported by
appropriate land management requirements overseen by the Clean Energy Regulator. In line with
statements made by the Carbon Markets Institute (CMI), the excessive bureaucracy and unnecessary
farmer restrictions could hinder, not help farmers seeking to boost or supplement agricultural
productivity with carbon farming initiatives.
Greening Australia Ltd Tel: 1300 886 589 Email: info@greeningaustralia.org.au
ABN 40 002 963 788 Website: www.greeningaustralia.org.au
As proposed, these current amendments do not affect the methods which Greening Australia are
utilising, which are covered under the Carbon Credits (Carbon Farming Initiative) (Reforestation by
Environmental or Mallee Plantings—FullCAM) Methodology Determination 2014 (Environmental
Planting Methodology). However, there is potential that such an approach to restricting the take up
of vegetation methodologies may be extended to plantings methods, which if that were the case,
would undermine opportunities for farmers to maintain or improve traditional farm practice
productivity delivered by biodiverse carbon plantings.
Greening Australia’s approach to working with landholders and farmers, is one of co-design where our
carbon plantings complement their existing land use rather than compete. Our stakeholder
engagement starts with landholders and farmers nominating how much land and where they would
like to have carbon plantings. Ultimately, it is the decision of the landholder and any eligible interest
holders, for how that land is used and managed for environmental and non-environmental outcomes.
Risk of creating Market uncertainty
Land based carbon sequestration has been an important generator of Australian Carbon Credit Units
(ACCUs) in Australia and setting restrictions on the amount of land that can be allocated to a particular
methodology creates market uncertainty for this developing market.
Greening Australia is the largest restoration organisation in Australia and is active in the biodiverse
carbon market through its carbon business Biodiverse Carbon Conservation. We have substantial
forward pipeline of restoration projects, many of which are suitable carbon projects under the
Environmental Planting Methodology. Under our approach landholders that we partner with share in
the benefits, financial and non-financial, of restoration. At a time when confidence in the market is
growing these proposed changes putting in place restrictions, risks undermining the growth in the
market.
Greening Australia supports the statement from the CMI that these proposed changes could
compromise the acceleration of sustainable agricultural productivity and land management projects
that many farmers and investors are engaging in or considering, while also countering other
government initiatives to streamline engagement in the industry.
Impact on communities
The reason behind this proposed change from what has been stated is unintended adverse effects on
local communities, however, there is no evidence provided to demonstrate that this is happening.
Provision of such evidence would assist in development of the best response to such negative impacts.
As stated by the CMI, farmers and landholders have been the big winners from Australia’s Emission
Reduction Fund which has seen more than an 8 per cent increase in Australian Carbon Credit Units
(ACCUs) delivered in 2021 alone. This is underpinned by the ability for farmers to integrate their
agricultural productivity with carbon farming practices. Therefore, the definition of a notifiable
regeneration project set at 15 hectares and a third of a farm is too restrictive and likely to impact on
the economics and financial viability of such a decision. If a limit is required, then it should be increased
to allow the full benefits to be realised by a landholder, i.e., two thirds of a farm. Any limit should also
exclude unproductive and marginal land.
Greening Australia Ltd Tel: 1300 886 589 Email: info@greeningaustralia.org.au
ABN 40 002 963 788 Website: www.greeningaustralia.org.au
There are already existing mechanisms, that provide reassurance to rural communities that any real
or perceived adverse impacts from carbon projects is being managed or mitigated, such as: 1) all
projects must already demonstrate they are consistent with local NRM (Natural Resource
Management) plans and 2) all projects must receive all necessary development approvals to be issued
with carbon credits. Between these two mechanisms there is sufficient scope to be able to determine
whether conversion to/maintenance of a forest is appropriate or not. These mechanisms, however,
are vested in local and/or state government and do not necessarily provide federal government the
ability to influence these eligibility criteria.
Ministerial Powers
Under proposed changes to the legislation the Agriculture Minister can assess projects that exceed
the proposed limits and veto those projects.
No other conservation land uses, which are consistent with local planning requirements, are subject
to a federal ministerial veto, so this is a significant divergence in approach. Under this legislation, the
same area may be entirely planted out with trees without being registered as a carbon project, and
this would be allowable without a veto right. But if an income were to be earnt through registering
the planting as a carbon project and being issued with carbon credits, it would become subject to veto.
A veto power would increase exploration/investment uncertainty where the basis/criteria of such a
decision is not made clear. If the veto was to progress as proposed, with criteria that were clear and
calculable, then a project developer may be able to make an informed decision of a project
application’s potential risk to be vetoed.
Monitoring of pest and weed management
Greening Australia supports the intent of the proposed amendments to section 70 relating to the
additional reporting of weed and pest control while noting that this is already a factor for the
Regulator to consider in applying the fit and proper person test.
Review provision in legislation
There should be provision for a review mechanism within 18 months of any amendments to legislation
as a means of assessing its impact, including a review of ministerial decisions under the powers of
assessment and veto that identifies the economic and carbon impacts of those decisions.
Greening Australia Ltd Tel: 1300 886 589 Email: info@greeningaustralia.org.au
ABN 40 002 963 788 Website: www.greeningaustralia.org.au
General comments
Greening Australia also supports the public statements made by the Carbon Markets Institute on 15
December 2021 in relation to this matter.
Greening Australia is a member of the Australian Land Conservation Alliance, ALCA and supports
ALCA’s submission under this consultation process.
To discuss these matters further please contact Hugh Wareham at
hwareham@greeningaustralia.org.au or via 0417 139 809.
Yours sincerely
Brendan Foran
Chief Executive Officer
CC, Minister Angus Taylor, Minister for Industry, Energy and Emissions Reduction
Minister David Littleproud, Minister for Agriculture, Drought and Emergency Management
Australia
Greening Australia Ltd Tel: 1300 886 589 Email: info@greeningaustralia.org.au
ABN 40 002 963 788 Website: www.greeningaustralia.org.au
