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Biodiverse Revegetation - Trees in Agriculture Workshop

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Carbon Neutral’s CEO Ray Wilson presented on ‘biodiverse revegetation in the voluntary market’ at a ‘Trees in Agriculture’ workshop facilitated by the Department of Agriculture. These are the …

Carbon Neutral’s CEO Ray Wilson presented on ‘biodiverse revegetation in the voluntary market’ at a ‘Trees in Agriculture’ workshop facilitated by the Department of Agriculture. These are the presentation notes.

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  • 1. Revegetation- thevoluntary market forbiodiverse plantingsWorkshop and Roundtable : Trees in Agriculture20 June 2013Ray WilsonCEO
  • 2. Topics• Carbon Neutral• What is biodiverse reforestation?• Demand - capturing buyer attention• Supply issues• Misconceptions• Opportunities“Why would you plant non-commercial treecrops?”
  • 3. Who is Carbon Neutral?Carbon Neutral is a carbonsolutions provider andreforestation offset developer.We help clients to measure,reduce and offset greenhouse gasemissions. As a registeredenvironmental charity wespecialise in biodiverse treeplantings.Mission: To reduce greenhouse gas emissions through education andrevegetation. Not for profit Carbon consultancy andoffset provider Established 2001 by Men ofthe Trees Planted over 13 million trees Award winning Over 1000 business clients Working across Australia
  • 4. Our Clients
  • 5. Carbon Neutral BusinessCarbon ConsultancyServiceForest Carbon SinkDeveloperOffset Retailer• Energy audits• Carbon footprintanalysis and reductionprograms• Environmentalmanagement plans• Carbon neutralcertification• Workshops &seminars• Staff engagementsurveys• Creation ofreforestation carbonoffsets• Unaccredited• Certified underthe CarbonFarming Initiative(CFI)• Plant-a-treeprogrammes[revegetation andbiosequestration]• Verified CarbonUnits [VCS, GoldStandard, SocialCarbon etc.]• ACCUs from CFI[for complianceunder carbon price]• Forestry-basedoffsets for voluntaryoffsetting [non-accredited]
  • 6. Biodiverse Reforestation (Environmental Plantings)Ecological restoration is the process ofassisting the recovery of an ecosystem thathas been degraded, damaged, ordestroyed.Aim: To return an appropriate mix of plantcommunity mixes, balanced in both densityand species composition, and appropriatelymatched to both soil type and landscapeposition.
  • 7. Biodiverse ReforestationOutcomes:Biosequestration activities can deliver directbiodiversity benefits by providing wildlifehabitat and corridors when achieved throughconservation and restoration of naturalwoodlands and forests.Method: Direct seeding2013 site: 100ha east of Stirlings>200+ species (upper, mid, lower story)5-star rating
  • 8. How big is the market?Compliance Market:Top 500 emitters (> 25,000 t CO2e per site) "Misfortune 500“(>$500k pa each emitter)Verve Energy $200m @ 5% = $10m paMid-sized mining company $20m pa @ 5% = $1m paVoluntary Market:Small, medium and large companiesNAB (carbon neutral company) 260,000 tANZ (carbon neutral company)News Limited (carbon neutral company)Fosters (carbon neutral product)Taylors Wines (carbon neutral product)Australian paper (carbon neutral product)City of Sydney (carbon neutral) - 100,000 tLocal governmentState Fleet 70,000 tWorldwide Online Printing (carbon neutral)
  • 9. Why do Eastern States companies support WA projects?• Story behind the project (conservation area, bush linkage)• Over clearing history• WA global Biodiversity Hotspot (Gondwana Link)• Habitat creation (WWF)• Protection (Bush Heritage)• Legal protection (carbon rights & carbon covenants)• Certification / verification• Monitoring reports• $3.75 per tree ($3-5000/ha) / $15-22.50 per tCO2eGetting a price premium
  • 10. Carbon offset + Co-benefits (Environmental + Social (indigenous))Trees seen as an important option for sustainable management of land(environmental or oil mallee).Plant on unproductive farm land to assist combat environmentalissues:• Salinisation• Water logging• Soil stabilisation• Habitat and biodiversity loss– Shelter belts for stock– Aesthetics– Positive impact on rainfall!!!Co-Benefits
  • 11. Revegetation Program2006 planting east of Dowerin
  • 12. Resource Management Technical Report 379Changing land use on unproductive soilsNORTH EASTERN AGRICULTURAL REGION STRATEGYPROJECT 3Andrew Blake, Mike Clarke and Angela Stuart-StreetSurvey of farmers NE wheatbelt farmers: over 70responses which account for over 12% of farms• 10% of soils on farm surveyed are consistentlyunproductive• If climate continues to dry another 35% will beconsistently unproductive• 75% of farmers would be willing to permanentlyrevegetate these soils• Farmers see land capability planning/subdivision worthinvestigating – so they may sell off unproductive land
  • 13. Cost NeutralIndicative Revenue:100 ha @ 275 t/ha CO2e @95% (after buffer)= 26,125 tCO2 @ $20/t= $522,500 over 15-20yrs years(>$5,000 per ha) gross. 50% GMSignificant economies of scale (esp. projectmanagement) = >$150/ha pa netPlus – can selectively harvest species <5%Could transform the economic prospects of rural Australia, especially ofremote areas (Ross Garnaut).Economics
  • 14. Cost Neutral1. Carbon credits will lead to plantationcompanies (repeat of bluegums)– Need to be $60/t CO2e to threaten prime farmland– Need to fit in with regional NRM strategies– Councils can limit via Development Applications2. Fire Risk– Fire management plans and insurance3. Weed control– Can be grazedConcerns
  • 15. Cost NeutralEnvironmental pressures building...• Australia—the developed world‘s largest emitter of greenhousegases per head of population• Community acceptance growing that climate change is happening• Community concerns that Australia‘s biodiversity is in declineAt least 1,700 species and ecological communities are said to be threatenedand at risk of extinction• More firms want to Measure, Reduce and Offset their emissions• Supply chain procurement pressures + Corporate SocialResponsibility• Carbon Farming Initiative framework (environmental plantings)supply internationally tradable creditsOpportunities to attract buyers
  • 16. BarriersExternal:1. Political uncertainty oncarbon pricing2. Economy - discretionaryspend (except wherecommitted to ‘carbonneutrality’)Domestic:1. Land subdivision restrictions - willforce developers to buy whole farms2. Lack of a WA strategy to integratebiosequestration with the CFIframework and Carbon Rightslegislation3. Lack of clarity on land conservationco-benefits4. Collaboration DEC, DAFWA, NRM,Universities post FFI CRC?5. WA stakeholders competing for grantfunding - opportunities forpartnerships
  • 17. Carbon Neutral Ltd9/7 Hector Street West, Osborne Park 60171300 851 211ray.wilson@carbonneutral.com.auwww.carbonneutral.com.auABN: 99 124 696 966