Green Energy: Carbon prices continue to rise as Feds back soil carbon projects

The Morrison Government says investment in soil carbon projects that generate offsets will increase, with new measures to reduce the cost of measuring soil carbon.

Modelling will be able to be used under a new draft soil carbon method that has gone out to public consultation today, and new activities claimed to reduce greenhouse gas emissions by storing carbon will also be included.

Energy and Emissions Reduction Minister Angus Taylor said the changes will make it easier for farmers and agricultural businesses to participate in the carbon market and generate Australian Carbon Credit Units for the Emissions Reduction Fund.

“Through the new soil carbon method we’re making it easier for our farmers to be rewarded for their contribution to reducing Australia’s greenhouse gas emissions,” he said.

“For the first time it will allow modelled estimates of soil carbon change to be used, in combination with measurement approaches, which is expected to materially reduce costs and increase returns.”

“Reducing the cost of soil carbon measurement to less than $3 per hectare per year is a priority under the Government’s Low Emissions Technology Statement, and one of five low emissions technology priorities under our Technology Investment Roadmap.”

Last week a soil carbon project at Binginbar Farm, near Dubbo in New South Wales, became the 1000th to be registered under the Emissions Reduction Fund.

ACCU prices have been rising steadily in 2021, which market experts say has been driven more by demand from corporates facing investor and stakeholder pressure than government policy.

According to consultants Reputex Energy they hit a new high over the last fortnight, up 3% to $23.10/t.

While the carbon market is climbing in Australia it is positively booming in the long established, compliance based European market, where prices struck an all time high of more than €59 per metric tonne.