Home > Carbon Conscious opens new revenue stream with Commonwealth carbon farming endorsement

Carbon Conscious opens new revenue stream with Commonwealth carbon farming endorsement

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The Carbon Farming methodology of Carbon Conscious has been endorsed by the Commonwealth and signed into law.

The Carbon Farming methodology was endorsed by the Commonwealth triggering ACCUs from 18,000 hectares of forest projects and a second significant long term income stream for the Company.

After signing the Carbon Conscious methodology into law the Parliamentary Secretary for Climate Change, Industry and Innovation Yvette D’Ath congratulated Carbon Conscious for its success in developing the methodology that not only serves its needs but also provides more opportunities for landholders to diversify their farm income by engaging in Australia’s carbon markets.

She adds that there are now five approved CFI activities covering the establishment or regeneration of forests, and a total of 14 approved methodologies available to landholders and farmers in setting up projects and generating carbon credits.

Executive Director of Carbon Conscious Mr Andrew McBain explains that the methodology determination is a major milestone for Carbon Conscious which, with 18,000 ha planted in Australia between 2008 and 2012, has established itself as a leading carbon offsets project developer.

The process of registering the Company’s ‘Carbon Capture Project 1’ with the Clean Energy Regulator is underway. Concurrently, the first Full Inventory of the 2008, 2009 and 2010 season plantings is nearing completion and the Company expects to deliver its first ACCUs during the third quarter of 2013.

Contracts to manage project forests for external customers exist to 2027 and deliver stable revenue of about $600,000/quarter. Other plantations are on balance sheet and the Company plans to generate additional revenue selling ACCUs from these at market.

According to Mr McBain, the methodology determination is the outcome of a significant shareholder investment that commenced in 2005. The organisation has also collaborated with the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education to address all scientific, regulatory and commercial hurdles.

The Carbon Farming Initiative has bi-partisan support as a key measure to enable Australia to achieve its 2020 target of a 5% reduction in carbon emissions below year 2000 levels.

The CCF Carbon Farming methodology was endorsed by the Domestic Offsets Integrity Committee (DOIC) in April, and has been signed into law as Carbon Credits (Carbon Farming Initiative) (Reforestation and Afforestation—1.1) Methodology Determination 2013 by Parliamentary Secretary for Climate Change Industry and Innovation Yvette D’Ath.

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