Changes announced Friday likely to lead to increased returns to landholders and project owners and increase opportunities for new investment to flow into climate solutions
AgriProve says changes will underpin greater long term confidence in commercial foundations for projects moving forward
AgriProve’s commercial model provides maximum flexibility to partnering farmers in accessing carbon markets as the sector continues to evolve
7 March 2022: Australia’s leading carbon soil farming developer, AgriProve, says the recently announced transitional arrangements to Emissions Reduction Fund fixed delivery contracts are a positive overall outcome for landholders, point to a stronger carbon market and increase opportunities for new investment to flow into climate solutions.
The Minister for Industry, Energy and Emissions Reduction, the Hon Angus Taylor MP announced changes to Emissions Reduction Fund (ERF) contracts on 4 March 2022. These changes will increase the supply of Australian Carbon Credit Units into the open ‘spot’ market by allowing (through the payment of an exit fee) the release of Government contracted carbon credits into the open market.
AgriProve Founder and Managing Director Matthew Warnken says the announcement is welcome news for farmers including those with projects already in train as it points to a reliable long term spot price as well as the continuing maturation of the sector.
Additional details on transitional arrangements for Emissions Reduction Fund fixed delivery contracts provided by the Clean Energy Regulator point to the ongoing progression of the Australian carbon market towards full optional delivery for all carbon abatement contracts. They also highlight the important role that Government has in continued underwriting of new project development and support for innovation in delivering new climate solutions.
About Carbon Abatement Contracts
Carbon Abatement Contracts were a unique innovation introduced in 2015 to the Australian carbon market. These contracts de-risked the market risk for emissions avoidance and carbon sequestration projects and provided a funding model to underwrite project development. This funding model has been fundamentally important in driving the more than 1,100 projects registered under the ERF and more than 106 million credits issued by the program.
Quotes attributable to AgriProve Managing Director Matthew Warnken
“As an Australian and global leader in the development of soil carbon projects with over 70% of all soil carbon projects successfully registered in the Australian Emissions Reduction Fund, AgriProve welcomes these positive moves for the sector and for our partnering farmers.”
“These changes support the role of Government in underwriting project development and reinforcing innovative climate solutions. We are also excited that the additional details around these transitional arrangements point to the ongoing evolution of the Australian carbon market towards full optional delivery for all carbon abatement contracts.”
“AgriProve’s commercial model is to provide our partnering farmers with maximum flexibility in accessing carbon markets. Last week’s announcement will not change this commercial model as farmers working with AgriProve are not locked into contracts with the Clean Energy Regulator. While it may dampen spot market carbon prices in the short term, this will provide a clearer perspective of the underlying market demand for carbon credits in Australia. This in turn will provide landholders with greater confidence on the commercial underpinnings for their soil carbon projects moving forward.”
“Importantly the announced changes point to the ongoing maturing of the carbon market in Australia. AgriProve supports improvements to the operation of the Emissions Reduction Fund that see increased returns to landholders and project owners and increase opportunities for new investment to flow into climate solutions.”
“This is a rapidly evolving sector and AgriProve as Australia’s leading soil carbon project developer, with the help of our farmer partners and scientific and industry partners, is proud to be building on and continually evolving the work done to date on regenerative farming systems and soil carbon capture.”
“AgriProve continues to invest in the innovation, technology, expertise and people to expand and evolve our farmer-led solution to make it even easier for Australia’s farmers to boost productivity, resilience and returns including carbon credits.”