What we covered

Atlas Carbon CEO Ashley Silver explained how Australian livestock producers can use emissions data to make informed decisions about carbon projects and carbon neutral opportunities.

Hosted by: Victoria Lawrance, Senior Sales Consultant and Ashley Silver, CEO

Carbon Emissions, Carbon Projects & Carbon Neutral decisions  

The latest warning from Australia's Climate Change Authority that Australia must cut emissions by 75% over the next decade to limit global warming to 1.5 degrees puts renewed pressure on livestock producers to reduce their carbon footprint.  

Can you use a Soil Carbon Project to offset emissions?

One solution to offset methane emissions from sheep and cattle is a soil carbon project.  

These projects use strategic grazing to promote soil health – healthy soils sequester more carbon, which could be used to offset livestock emissions. These strategies can also drive production uplift, reduce reliance on fertiliser and bought feed, and deliver income diversification from the carbon market.  

However, this approach is not for everyone as many properties lack the natural capital (soil, rainfall, temperature) to deliver successful soil carbon or tree planting projects - and for those that can, it's not actually in perpetuity as carbon sequestration has a saturation point. This is why Atlas Carbon has developed a unique Cost-Benefit Report to cut through the noise about carbon neutrality and help producers understand what a carbon soil project would look like on their property.

What factors do you need to take into consideration?

When considering the option to use your carbon credits to offset your emissions, it is essential to know your carbon potential and annual emissions. Animal emissions are the driver of any livestock business. Other emissions like electricity consumption, vehicles, fertiliser, and fodder also drive emissions and should be accounted for. If you aren't a significant user of these additional inputs, adding a further 20% on top of your livestock emissions will give you a rough idea of your property's annual emissions.  

Estimating Emissions  

Emissions are estimated and counted across three different sources or "scopes" of emissions.  

Scope 1 Emissions directly resulting from activities in your operation. Examples include methane from livestock, the use of fuels on-site, and synthetic fertilisers.  

Scope 2 Emissions resulting from consumed energy on your property. Examples include the burning of coal to generate electricity used on the property.  

Scope 3 Indirect Emissions due to your operations but not from your operations. Examples include purchased and transported materials, fuels, feed, etc.  

The tables below estimate the amount of CO2 emissions driven by major drivers. For animals, these estimates are based on a 12-month period on a farm. These estimates are provided by the Greenhouse Accounting Framework or GAF.  

How long can you expect to offset carbon with a soil carbon project?  

When we look at soil carbon potential and estimate emissions for a property, we find that those properties with soil carbon potential will generally be able to sequester enough carbon to offset their farm emissions for 10-20 years. Those properties with low or limited potential may not be able to sequester any meaningful level of soil carbon and would thus need to look elsewhere for a way to offset their emissions. The specific levels depend on many factors, including property size, stocking rates, soil type and estimate sequestration rates, other sources of emissions, and the level of new practices producers are willing to adopt.  

Should you sell or use carbon credits to offset your farm's emissions?  

Producers are weighing up the options between selling credits on the open market and the revenue this might deliver, with the alternative of using their carbon credits to offset their emissions and selling a carbon-neutral product. If you consider that the average emissions of a 2-year-old cow are around 1.83 tCO2 p.a., then the value of the carbon required to offset this cow would be $66 (based on 1.83 tons of carbon per cow at a x $36 price of carbon). This value only offsets the cow, not the full emissions profile of producing that cow. So, what kind of price premium might a carbon-neutral cow fetch in the market, and is it sufficient to cover the hypothetical $66 worth of carbon credits required to offset it versus selling them on the open market for a separate revenue stream? This is a key question to consider across carbon emissions, carbon projects and carbon neutral decisions.  

To better understand how your property stacks up, click the button below to get your Cost-Benefit Report.

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