What is a soil carbon project?

Some questions to consider before commencing a soil carbon project

How long does a soil carbon project last?

AgriProve registers soil carbon projects are registered under a 25-year ‘permanence’ period. This means the organic carbon must be maintained for a period of 25 years after the first issuance of carbon credits to the project The main commitment over this time is maintaining the land in an agricultural system. AgriProve remains as the project proponent to ensure continuity for the monitoring, reporting, and verification of the project.

What are the eligible activities and how to meet requirements?

Under the 2021 Soil Carbon Method, the activity that is implemented needs to be new or materially different. ‘New’ means that it has not been done in the baseline period of the project (5 years prior to starting), and ‘materially different’ is an alteration of what has been done. For example, applying a different fertiliser that addresses specific trace elements, changing cover crop rotations, or altering the way in which livestock movements are determined. Any one activity can be implemented on its own or in combination with others.

The activities that are eligible under the 2021 Soil Carbon Method include:

1. Applying nutrients to the land in the form of a synthetic or non-synthetic fertiliser to address a material deficiency. This may include, but is not limited to, use of compost or manure,
2. Applying lime or other ameliorants to remediate acid soils,
3. Applying gypsum to manage sodic or magnesic soils,
4. Re-establishing or rejuvenating a pasture by seeding or pasture cropping,
5. Establishing, and permanently maintaining, a pasture where there was previously no or limited pasture, such as on cropland or bare fallow,
6. Altering the stocking rate, duration or intensity of grazing (or any combination of such activities) to promote soil vegetation cover or improve soil health, or both,
7. Retaining stubble after a crop is harvested,
8. Converting from intensive tillage practices to reduced or no tillage practices,
9. Using legume species in cropping or pasture systems,
10. Using a cover crop to promote soil vegetation cover or improve soil health, or both.

Can I vary the size of my soil carbon project once it has been registered?

The size of the carbon project area can be varied up until the baseline sampling round. After this, all future measurements will need to be compared to the baseline sampling results and therefore the project area cannot change following this baseline sampling round. However, we can always register an additional soil carbon project if you want to stagger the implementation of building soil carbon across your property. AgriProve’s commercially minimum viable size for a carbon project is 300ha, after exclusion areas.

What happens if I am paid credits, but my soil carbon levels decline?

There is no obligation to return credits to the Government if there is a measured decrease in soil carbon levels in the final measurement at the end of the 25 year project duration.

Credits under the 2021 Soil Carbon Method are issued to a high-water mark, where if there is a decline in carbon stocks within the project lifetime, no new credits will be issued to the project until the previous high-point in soil carbon is exceeded. There are also buffers (such as the Risk of Reversal and Permanence Period) that contributes to the overall carbon pool which are applied at every crediting round. This buffers against natural cycles and disasters such as bushfire and drought, which can be unavoidable.

The obligations of the operator (you) is to ensure that the property is to be maintained in an agricultural system, and there is no conduct that could intentionally result in a significant reversal in carbon stocks.

In the event that there is significant reversal in carbon stocks, the Clean Energy Regulator may request a relinquishment of ACCUs issued to the project. If this does occur, it can either be a partial relinquishment or full relinquishment of ACCUs and could happen at any point during the project lifetime. If this does occur, and there is a relinquishment request, it is the responsibility of the project proponent (AgriProve) to return those credits. The liability may be passed onto the operator (you) in the event of a breach of the Master Terms and Conditions. For more information visit ‘Relinquishing ACCUs’ on the CER website.

What is my initial commitment?

Initially you will sign a Consent to Register form which gives AgriProve permission to register a soil carbon project on your land. This form also provides us with an 18-month exclusivity period to cover the registration, baselining, and sales agreement stages. You are not locked in to proceed with the project at this point, as it is designed to give you time to better assess the soil carbon opportunity on your property.

Can a project be terminated by the regulator? If so, under what circumstances?

Yes, there are provisions whereby the Regulator can terminate projects. This includes but is not limited to scenarios where the land is no-longer eligible land, or there has been restricted or prohibited activities (as defined by section 11 and section 12 of the 2021 Soil Carbon Method) performed at such as scale that is inconsistent with the requirements of the 2021 Soil Carbon Method.

For example, if the land use changes out of an agricultural system, it becomes difficult to argue that the carbon stocks are being maintained within an operational agricultural system. The major commitment associated with running a soil carbon project is the commitment to keep the land within an agricultural system for 25 years, and be aware of the activities that are restricted or not to be conducted.

Do I need to ‘lock up’ the land that is under the project?

The benefit of a soil carbon project is that you are still able to use the land for other purposes if the activity is consistent with agricultural land use. Remember, the method encompasses all agricultural activities and incentivises the storage of carbon stocks as part of operational agricultural systems.

What happens if I want to sell my land part way through my carbon project?

By registering the project with AgriProve, AgriProve is the project proponent. This means that the AgriProve assumes responsibility to manage the compliance, regulatory and legal requirements in the set-up and day to day project management. This means if you choose to sell the property or part thereof, AgriProve can work with the incoming landholder to continue the project. This is called novation of a carbon project. However, the incoming landholder is under no obligation to do so.

If the incoming landholder does not wish to continue the project, there are two pathways.

1. The operator is novated to the incoming landholder. AgriProve will continue to manage the project on behalf of the incoming landholder conducting sampling every 5 years to satisfy the method requirements. The incoming landholder is under no obligation to continue the specified ‘carbon building’ activities, or manage the land in line with the outgoing landholder (you), providing they maintain the property in an agricultural system. The outgoing landholder retains any ACCUs generated up until the property sale.
2. The incoming landholder requests the carbon project to be revoked. In this circumstance, the operator of the project (you) hasn’t been able to novate the agreement and would be required to return all ACCUs generated on that project back to AgriProve as per Master Terms and Conditions.

Are there any restrictions or limitations on tree planting within a carbon project?

There are some considerations with tree planting within a carbon project, however, most can be easily accommodated and integrated into the carbon project with minimal impact.

The key requirement, is that once planting (has been planned or planted), any land remains eligible land under Section 9 of the 2021 Soil Carbon Method:

In other words:

• The area of planted trees cannot be considered forest or have ‘forest potential’; meaning that trees cannot grow to more than 2m in height and provide 20% crown cover of the land and cover 0.2Ha in a single area
• Sampling must be able to take place in line with the Supplement and Method.  In practicality, this means being able to sample at the intended sample site (i.e. get any sampling equipment in place and perform the core extraction) or being able to offset the sample point (in the case of a few trees) as per the sampling guidelines.
• Any land that is within a CEA that has trees planted, can still have the specified land management activities performed on or around the general area.

If tree planting is a part of the overall strategy for improving the landscape of the property, it may be worthwhile considering excluding those areas from being registered as CEAs on a project.

Reach out to an AgriProve representative if this is something you are considering and how we may be able to assist or provide options for integration within your soil carbon project.

What is involved in running a soil carbon project from start to finish?

The steps involved in carrying out a soil carbon project are as follows:

1. Provide your consent to register a project on your land. This process is very quick to initiate and we will work hard to get your project declared by the Clean Energy Regulator as soon as possible. In this process we will look at the past 5 years of land management. From initial contact to getting your project declared can take up to 3 months, dependent on communication promptness.
2. Baseline soil sampling to measure the levels of soil carbon currently in your soil. Sampling takes a day or two (depending on the size of your property) – samples are sent to the laboratory for analysis. The soil sampling results will also be provided to you. From signing of the up for a soil carbon project, we can be out to do baseline sampling in as little as 6 weeks.
3. You carry out at least one new ‘eligible activity’ to increase levels of soil carbon. This activity can differ depending on your interests and land management requirements. Read what the different eligible activities are here.
4. After 2-5 years we carry out more soil sampling to measure the levels of soil carbon in your soil. Again, samples are sent to the laboratory for analysis. The difference in the amount of soil carbon is then calculated. In the intervening period we conduct satellite monitoring to assess the progress of your sequestration. We will only sample if our indicators point to an increase in soil organic carbon. We are required to sample at least every 5 years.
5. If the amount of carbon calculated in your soil has increased, we will apply to the Clean Energy Regulator for the corresponding amount of ACCUs. Once approved you will be issued ACCUs which you can choose to sell, hold or retire.

For more information on the process visit the Start Here page.

How do I know that my eligible activities are working?

You can evaluate how your eligible activities are affecting soil carbon sequestration, productivity, and ecosystem health.

• Satellite monitoring : At AgriProve we measure NDVI and NDRE imagery to assess the chlorophyll levels in leaves.
• Soil Carbon Sequestration: If your soil carbon stocks increase over time, it indicates your new management practices are effective.
• Productivity: Look for improvements like higher yields and better quality feed, reduced need for synthetic inputs, and better livestock conditions, such as faster weight gain and improved calving or joining rates.
• Ecosystem Health: Check for signs of improved ecosystem health, such as increased biodiversity, more plant species, wildlife, healthier soil biology, and better water availability.