WA farmers urged not to rush into selling carbon credits to resources companies

WA farmers have been urged not to rush into selling carbon credits to resources companies, amid signs demand from big emitters is about to explode. Grain Industry Association of WA’s outgoing chairman Ashley Wiese said farmers were in a unique position in that they could sequester carbon on their land. “They (mining companies) are going to be looking to land to sequester that carbon,” he said at GIWA’s annual forum this week. “We are all in this together when it comes to tackling climate change, but there is value in reducing and offsetting our own supply chain’s emissions first.” Agriculture Minister Alannah MacTiernan said if farmers sold their Australian carbon credit units, they could have sustainable production, but would not get access to a premium because “you can’t double dip.” Crawford Taylor, head of sustainable business development at Rabobank Australia, said farmers able to generate ACCUs through the Clean Energy Regulator may be better off retaining them to go towards making their own businesses or supply chain carbon neutral. “The moment you sell that credit to, for example, a mining company, you can’t claim it, it’s gone,” he said. Mr Taylor said a better understanding of how the CER and methodologies work was needed. “Unfortunately we’ve seen a number of schemes across Australia where growers have committed and lost control, mostly through a lack of knowledge,” he said. Mr Taylor also urged farmers to look beyond carbon credits towards the broader issue of sustainability. “It is very important .... to note it’s not just about offsets,” he said. “This is about reducing emissions long term. You get a short-term sugar hit through offsets, but if you are still emitting, at some point the emissions will come home to bear.” Jane Wardle, quality and sustainability manager at CBH Marketing and Trading, said CBH had netted $400 million in premiums for growers since 2010, after meeting sustainability certifications for canola being sold to the European Union market Although different to being carbon neutral, she said that third party verified certifications were favoured by customers, with ISCC the preferred option amongst its own customers.