Carbon farming market opportunities

Carbon farming is becoming a global priority as climate research promotes the need for us to protect the environment. The government and private sector are rewarding farming businesses for adopting initiatives that reduce greenhouse gas emissions.

Find out how you can access alternative income streams and a wider market for your produce.

Market access

Carbon farming provides an opportunity to support industry, business, and government in reaching net zero emission targets. It allows the sector to verify on-farm activities, leading to:

• offsetting emissions
• demonstrating carbon neutrality and sustainable practices
• creating new low emission products.

The ability to measure and accurately demonstrate emission reduction, as well as other sustainable or environmental benchmarks, will become important for primary industries and the supply chain.

Nationally and globally, companies are setting new sustainable and carbon neutral targets in line with shifting consumer expectations and market requirements. Meeting these targets will ensure ongoing access to existing and new markets.

Carbon offsets

The Clean Energy Regulator (CER) is the Australian Government's economic regulator administering schemes to measure, manage, reduce, and offset national carbon emissions.

This includes the Australian Carbon Credit Unit Scheme, which enables individuals and businesses to reduce emissions or store carbon by:

• using new technology
• upgrading equipment
• changing business practices to improve productivity or energy use
• adjusting the way vegetation is managed.

Projects adhering to scheme methods can earn Australian Carbon Credit Units (ACCUs) – each representing one tonne of carbon dioxide equivalent greenhouse gas emissions stored or avoided.

Participants can sell ACCUs to private investors and businesses wanting to offset their carbon emissions. Find out which organisations have signed the Australian Carbon Industry Code of Conduct.

See an overview of South Australian participation in the scheme to date in PIRSA’s annual industry scorecard.

Emerging environmental markets

The Australian Government supports a market for biodiversity through the Nature Repair Market. This may facilitate a credit-based system, similar to carbon credits, for biodiversity improvements.

Other environmental markets, such as the Reef Credit Scheme in Queensland, demonstrate the potential of diverse income streams available to land managers.

More information

• Carbon Market Institute – factsheets explaining carbon farming and carbon market opportunities
• Climate Active – Australia Government’s carbon neutral certification scheme
• Pathways to carbon neutral (or net zero) agricultural systems – practical video explaining profitable, sustainable, and socially acceptable ways to reduce carbon emissions