Carbon Farming Initiative

The Carbon Farming Initiative (CFI) is an Australian Government scheme to help farmers, forest growers and land managers earn income from reducing emissions like nitrous oxide and methane through changes to agricultural and land management practices. The initiative will achieve this by:

The implementation of the scheme will be undertaken jointly by DAFF and the Department of Climate Change and Energy Efficiency.

The scheme clearly outlines the rules for recognition of carbon credits generated on–farm which could then be sold on domestic or international carbon markets. Information on these rules is available from the Department of Climate Change and Energy Efficiency. 

The Australian Government has consulted widely on the Carbon Farming Initiative. The Department of Climate Change and Energy Efficiency has led a consultation process that has included:

  • workshops in November and December 2010
  • a consultation paper released in November 2010
  • draft legislation released in January 2011

The Government received around 280 submissions from stakeholders raising key issues, which was taken into account before finalising the legislation.

The legislation was introduced into Parliament on 24 March 2011 and passed the House of Representatives on 16 June 2011. On the 23 August 2011 the legislation was passed by Parliament becoming the world’s first national scheme that regulates the creation and trade of carbon credits from farming and forestry. The CFI legislation is the precursor to the carbon price legislation to be put before Parliament later in 2011.

Carbon crediting scheme

These rule and regulations will be the basis for the carbon crediting scheme and developing on farm methodologies for emissions offset activities. Landholders undertaking activities that conform to an approved methodology will generate carbon credits. These carbon credits could then be sold on domestic or international carbon markets.

Further information on these rules is available from the Department of Climate Change and Energy Efficiency and the CFI brochure.

Methodology development

Landholders and Indigenous Land Managers undertaking projects to credit offsets will need to use an approved methodology in order to participate in the carbon offset scheme.

All offset methodologies are assessed by the Domestic Offsets Integrity Committee (DOIC), an independent committee of experts, to ensure they lead to real and measurable emissions reductions. The Committee brings a range of expertise to these assessments, including science, technology, legal, methodology development  and greenhouse gas measurement approaches.

A list of proposed methodologies and further information on how to submit comments are available on the Department of Climate Change and Energy Efficiency website.

The Government is continuing to work with stakeholders to develop further methodologies for submission to the DOIC.

Carbon Farming Initiative Communications Program

The Carbon Farming Initiative (CFI) Communications Program will invest $4 million from 2011–12 to 2013-14 to provide farmers, land managers and their key influencers with credible, clear and consistent information on the CFI.

Part of the program will provide targeted grants to each of the 56 Natural Resource Management (NRM) regions. This will see Regional Landcare Facilitators (RLFs) work closely with farmers, Indigenous Australians and other land managers to identify how they can participate in and benefit from the opportunities created by the CFI and carbon farming.

RLFs participated in a national forum about the CFI in Canberra on 8 and 9 March 2011. They have also attended state and territory based workshops delivered by the Australian Government and the University of Melbourne. It is expected that RLFs will begin delivering information sessions to farmers and land managers from December 2011.

Carbon Farming Initiative — Biochar Capacity Building Program

A further $2 million through the CFI is being provided for a Biochar Capacity Building Program which will provide farmers and land managers with a better understanding of biochar and its role in mitigating greenhouse gas emissions. The Biochar Capacity Building Program will support research, on–ground demonstration of biochar and the development of offset methodologies to provide additional options for landholders to contribute to reducing Australia’s carbon pollution.

Biochar is a soil amendment that is produced by the burning of organic matter such as wood or crop waste in a low oxygen environment. Biochar has the potential to mitigate Australia’s greenhouse gas emissions while benefiting agricultural production.

The Biochar Capacity Building Program is in addition to the $1.4 million already being invested in the National Biochar Initiative as part of the Climate Change Research Program. The National Biochar Initiative is led by the CSIRO and the areas of research include:

  • cataloguing the properties of different types of biochars and developing suggested applications and usages for specific types of biochars
  • understanding the interaction of biochar with Australian soils
  • greenhouse gas life cycle assessment of biochar use in Australia.

The application period for the Biochar Capacity Building Program is now closed. The Biochar Capacity Building Program guidelines are available for reference.

Further information on National Biochar Initiative is available at CSIRO.

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More information

Please call 1800 156 858 or email Carbon Farming Initiative.

Last reviewed:
06 Feb 2012
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