Exposure draft regulations for the Carbon Farming Initiative—Tranche 3


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Consultation period: 
11 June 2013 to 3 July 2013

The Carbon Farming Initiative (CFI) allows farmers and land managers to earn carbon credits by storing carbon or reducing greenhouse gas emissions on the land. These credits can then be sold to people and businesses wishing to offset their emissions.

Interested parties are invited to make submissions on the exposure draft of the Carbon Credits (Carbon Farming Initiative) Amendment (Additionality Test and Other Measures) Regulation 2013 by 3 July 2013. The Department has prepared an explanatory note to assist stakeholders in their consideration of the draft regulation.

The draft regulation provides for the addition of five new kinds of project to the ‘positive list’ of eligible activities under the CFI.

The positive list is an important part of the CFI additionality test, which also includes a regulatory additionality test (meaning the project is not required by law). The positive list identifies activities that would be considered additional and hence eligible to participate in the scheme.

When adding activities to the positive list, a key consideration is whether carrying out the activity goes beyond common practice in the relevant industry or part of an industry, or in the environment in which the activity is to be carried out. The changes proposed by the draft regulation are based on recommendations made by the Domestic Offsets Integrity Committee. Further information on the common practice assessment is detailed on the Positive list page.

The draft regulation will also expand the kinds of projects under the CFI that are able to generate Kyoto Australian Carbon Credit Units (ACCUs). For the second Kyoto commitment period, Australia has decided to include additional activities in its Kyoto accounts.

These additional activities are grazing land management, cropland management and additional revegetation. These activities will be eligible to receive Kyoto ACCUs for abatement from 1 January 2013, i.e. from the start of the second Kyoto commitment period. Further information is detailed on the Kyoto and non-Kyoto activities page.

Preparation of technical guidelines to clarify exactly what will not be included in Australia’s Kyoto accounts is underway and should be ready for publication by the time this amendment comes into effect.

Comments on new positive list proposals should be submitted using the submission template (DOC 200 KB) and sent to the address in the template. Comments can include any concerns about the proposed activity and whether it should be addressed in the negative list.

This exposure draft process will inform the finalisation of the amendment regulation, which is expected to be made in the second half of 2013.

Making a submission

Where possible, submissions should be lodged electronically in a text-based format (such as PDF, DOC) via email to cfi@climatechange.gov.au

Submissions may alternatively be sent to the postal address below to arrive by the due date.

Submissions will not be treated as confidential unless this is specifically requested, and may be made publically available. If a submission (or an extract of a submission) is to be kept confidential, please indicate this in the submission.

The Department reserves the right not to consider late submissions.

Contact details

CFI Design Section
Land Division
Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education
GPO Box 854
Canberra ACT 2601

Phone: 1800 057 590 or email cfi@climatechange.gov.au.