Getting started with carbon farming: a guide for landholders
Carbon farming offers Queensland landholders an opportunity to generate additional, regular income while improving the productivity and resilience of their land. By storing carbon or reducing emissions, you can earn Australian Carbon Credit Units (ACCUs) and deliver co-benefits such as improved biodiversity, water quality, and community outcomes.
This guide will help you understand the steps involved in starting a carbon farming project and provide resources to support your journey.
What is carbon farming?
Carbon farming involves a change in land management activities that reduce greenhouse gas emissions or capture and store carbon in vegetation and soils. These activities can generate Australian Carbon Credit Units (ACCUs), which represent one tonne of carbon dioxide equivalent stored or avoided. ACCUs can be sold to businesses or governments seeking to offset their emissions.
In addition to generating ACCUs, carbon farming projects can deliver a range of environmental and productivity benefits, including improved biodiversity, healthier soils, and increased resilience to climate change.
Advice for Indigenous landholders
Indigenous landholders and organisations have unique opportunities to participate in carbon farming projects that align with cultural, environmental, and community values. These projects can deliver economic benefits while supporting the sustainable management of Country.
We recommend that Indigenous landholders read the Indigenous Carbon Projects Guide, developed by the Indigenous Carbon Industry Network. This guide provides valuable insights into the opportunities and risks of participating in the carbon market and is tailored to the needs of Indigenous groups across Australia.
For additional support, Indigenous landholders are encouraged to connect with the Indigenous Carbon Industry Network for expert advice and resources.
Benefits and risks of carbon farming
Participating in carbon farming can deliver a range of benefits for your land and business. The table below outlines some common reasons to start carbon farming, the potential benefits and the associated risks.
| Reasons to start carbon farming | Carbon farming benefit | Carbon farming risk |
|---|---|---|
| Create a new income stream | Landholders can sell Australian Carbon Credit Units (ACCUs), creating an income stream in addition to their core business. | Like any other crop, carbon farming projects are not immune to price fluctuations or natural disasters, which impacts the revenue carbon projects can generate. |
| Become a carbon neutral farm to achieve certification or market advantage | By sequestering carbon on your property, you can choose to retire the ACCUs generated to offset your own farm activities. By offsetting your carbon emissions, you may be eligible to be certified as carbon neutral, which can make your products more valuable. | Retiring ACCUs to certify your carbon neutral status means you cannot sell those ACCUs for a profit. |
| Regenerate native landscapes to increase biodiversity and improve the health of the environment | Some buyers will pay more for carbon projects that produce extra environmental benefits. These are called co-benefits and can significantly increase the amount of money available to the landholder to conduct the project. |
Not all land is created equal, and some parts of the country will have more conservation value than others. The conservation value of the land influences how much the market will pay for co-benefits that conserve habitat. |
| Reduce greenhouse gases in the atmosphere to reduce global heating | All carbon farming methods are designed to either avoid the release of greenhouse gases or sequester existing atmospheric carbon in the soil or in trees. | The permanence period* is crucial to maintaining the carbon captured for the long term. Ensure you understand how this may impact any future farm plans, including the sale of the property. |
| Improve productivity by introducing regenerative agriculture practices | Landholders can generate ACCUs while improving their regenerative agricultural practices at the same time. | Regenerative agriculture practices alone do not constitute a carbon farming method, even if they reduce emissions. Landholders must follow approved methods under the ACCU Scheme to receive credits for any carbon stored through regenerative practices. |
Steps to explore carbon farming
1. Assess your land’s potential
The suitability of your land will determine the types of carbon farming projects you can pursue, the co-benefits you can deliver, and the potential return on investment.
Tools to help you get started:
- CSIRO LOOC-C Tool: Map your potential project, explore carbon methods, and estimate carbon yield.
- ACCU Scheme Eligibility Questionnaire: Check if your project would be eligible under the ACCU Scheme.
- Carbon Opportunity Decision Support Tool: Understand your carbon farming options.
2. Define your goals
Your motivations will shape the type of project you pursue. Common goals include:
- Generating income by selling ACCUs.
- Achieving carbon neutrality for your farm.
- Improving biodiversity and regenerating your land.
- Supporting climate action by reducing emissions.
3. Decide on project management
You’ll need to decide how much of the carbon farming project you want to handle yourself and how much you’d like to outsource. This decision will affect your level of involvement, control, and financial return.
The table below outlines three common approaches to managing carbon farming projects.
| Management option | Description | Pros | Cons |
|---|---|---|---|
| DIY | Landholder takes on almost all responsibility for the development and delivery of the carbon project, with the exception of employing a third-party auditor. | Maximum control and the largest share of any profit made. | It requires significant expertise, time and capital investment |
| Assisted DIY | Landholder manages the project with specialist expertise as required. | Balanced control and support, with less time and knowledge required than full DIY. | Profit margin is reduced due to the cost of outsourcing specific tasks. |
| Outsource | A carbon service provider develops and manages the project on behalf of the landholder, with minimal involvement beyond the legal agreement. | Requires the least time and effort from the landholder. | Offers less control and a smaller financial return compared to other options. |
For guidance, use the Carbon Market Institute’s checklists to ask the right questions before partnering with a carbon service provider.
4. Seek professional advice
The LRF Approved Adviser Program connects landholders with trained professionals, including solicitors, accountants, carbon project developers, and environmental consultants. These advisers can help you navigate the complexities of carbon farming.
Questions to ask an advisor:
- Which carbon farming methods are most suitable for my property?
- Can you assess my property for co-benefits like biodiversity or water quality improvements?
- What are your rates for desktop vs on-ground assessments?
- Does seeking advice from your company come with any future obligations?
Learn from case studies
Explore real-world examples of carbon farming projects to understand how landholders are benefiting:
- Zeebra Plains Case Study: A landholder-managed project.
- Burnham Regenerative Project: A project supported by a carbon project developer.
Resources to build your knowledge
Eligibility and project potential
- ACCU Scheme Eligibility Questionnaire
- CSIRO Carbon Abatement Calculator (LOOC-C)
- Carbon Opportunity Decision Support Tool