Carbon Neutral’s CEO Ray Wilson presented on ‘biodiverse revegetation in the voluntary market’ at a ‘Trees in Agriculture’ workshop facilitated by the Department of Agriculture. These are the presentation notes.

1. Revegetation- the
voluntary market for
biodiverse plantings
Workshop and Roundtable : Trees in Agriculture
20 June 2013
Ray Wilson
CEO

2. Topics
• Carbon Neutral
• What is biodiverse reforestation?
• Demand - capturing buyer attention
• Supply issues
• Misconceptions
• Opportunities
“Why would you plant non-commercial tree
crops?”

3. Who is Carbon Neutral?
Carbon Neutral is a carbon
solutions provider and
reforestation offset developer.
We help clients to measure,
reduce and offset greenhouse gas
emissions. As a registered
environmental charity we
specialise in biodiverse tree
plantings.
Mission: To reduce greenhouse gas emissions through education and
revegetation.
 Not for profit
 Carbon consultancy and
offset provider
 Established 2001 by Men of
the Trees
 Planted over 13 million trees
 Award winning
 Over 1000 business clients
 Working across Australia

4. Our Clients

5. Carbon Neutral Business
Carbon Consultancy
Service
Forest Carbon Sink
Developer
Offset Retailer
• Energy audits
• Carbon footprint
analysis and reduction
programs
• Environmental
management plans
• Carbon neutral
certification
• Workshops &
seminars
• Staff engagement
surveys
• Creation of
reforestation carbon
offsets
• Unaccredited
• Certified under
the Carbon
Farming Initiative
(CFI)
• Plant-a-tree
programmes
[revegetation and
biosequestration]
• Verified Carbon
Units [VCS, Gold
Standard, Social
Carbon etc.]
• ACCUs from CFI
[for compliance
under carbon price]
• Forestry-based
offsets for voluntary
offsetting [non-
accredited]

6. Biodiverse Reforestation (Environmental Plantings)
Ecological restoration is the process of
assisting the recovery of an ecosystem that
has been degraded, damaged, or
destroyed.
Aim: To return an appropriate mix of plant
community mixes, balanced in both density
and species composition, and appropriately
matched to both soil type and landscape
position.

7. Biodiverse Reforestation
Outcomes:
Biosequestration activities can deliver direct
biodiversity benefits by providing wildlife
habitat and corridors when achieved through
conservation and restoration of natural
woodlands and forests.
Method: Direct seeding
2013 site: 100ha east of Stirlings
>200+ species (upper, mid, lower story)
5-star rating

8. How big is the market?
Compliance Market:
Top 500 emitters (> 25,000 t CO2e per site) "Misfortune 500“
(>$500k pa each emitter)
Verve Energy $200m @ 5% = $10m pa
Mid-sized mining company $20m pa @ 5% = $1m pa
Voluntary Market:
Small, medium and large companies
NAB (carbon neutral company) 260,000 t
ANZ (carbon neutral company)
News Limited (carbon neutral company)
Fosters (carbon neutral product)
Taylors Wines (carbon neutral product)
Australian paper (carbon neutral product)
City of Sydney (carbon neutral) - 100,000 t
Local government
State Fleet 70,000 t
Worldwide Online Printing (carbon neutral)

9. Why do Eastern States companies support WA projects?
• Story behind the project (conservation area, bush linkage)
• Over clearing history
• WA global Biodiversity Hotspot (Gondwana Link)
• Habitat creation (WWF)
• Protection (Bush Heritage)
• Legal protection (carbon rights & carbon covenants)
• Certification / verification
• Monitoring reports
• $3.75 per tree ($3-5000/ha) / $15-22.50 per tCO2e
Getting a price premium

10. Carbon offset + Co-benefits (Environmental + Social (indigenous))
Trees seen as an important option for sustainable management of land
(environmental or oil mallee).
Plant on unproductive farm land to assist combat environmental
issues:
• Salinisation
• Water logging
• Soil stabilisation
• Habitat and biodiversity loss
– Shelter belts for stock
– Aesthetics
– Positive impact on rainfall!!!
Co-Benefits

11. Revegetation Program
2006 planting east of Dowerin

17. Resource Management Technical Report 379
Changing land use on unproductive soils
NORTH EASTERN AGRICULTURAL REGION STRATEGY
PROJECT 3
Andrew Blake, Mike Clarke and Angela Stuart-Street
Survey of farmers NE wheatbelt farmers: over 70
responses which account for over 12% of farms
• 10% of soils on farm surveyed are consistently
unproductive
• If climate continues to dry another 35% will be
consistently unproductive
• 75% of farmers would be willing to permanently
revegetate these soils
• Farmers see land capability planning/subdivision worth
investigating – so they may sell off unproductive land

18. Cost Neutral
Indicative Revenue:
100 ha @ 275 t/ha CO2e @95% (after buffer)
= 26,125 tCO2 @ $20/t
= $522,500 over 15-20yrs years
(>$5,000 per ha) gross. 50% GM
Significant economies of scale (esp. project
management) = >$150/ha pa net
Plus – can selectively harvest species <5%
Could transform the economic prospects of rural Australia, especially of
remote areas (Ross Garnaut).
Economics

19. Cost Neutral
1. Carbon credits will lead to plantation
companies (repeat of bluegums)
– Need to be $60/t CO2e to threaten prime farmland
– Need to fit in with regional NRM strategies
– Councils can limit via Development Applications
2. Fire Risk
– Fire management plans and insurance
3. Weed control
– Can be grazed
Concerns

20. Cost Neutral
Environmental pressures building...
• Australia—the developed world‘s largest emitter of greenhouse
gases per head of population
• Community acceptance growing that climate change is happening
• Community concerns that Australia‘s biodiversity is in decline
At least 1,700 species and ecological communities are said to be threatened
and at risk of extinction
• More firms want to Measure, Reduce and Offset their emissions
• Supply chain procurement pressures + Corporate Social
Responsibility
• Carbon Farming Initiative framework (environmental plantings)
supply internationally tradable credits
Opportunities to attract buyers

21. Barriers
External:
1. Political uncertainty on
carbon pricing
2. Economy - discretionary
spend (except where
committed to ‘carbon
neutrality’)
Domestic:
1. Land subdivision restrictions - will
force developers to buy whole farms
2. Lack of a WA strategy to integrate
biosequestration with the CFI
framework and Carbon Rights
legislation
3. Lack of clarity on land conservation
co-benefits
4. Collaboration DEC, DAFWA, NRM,
Universities post FFI CRC?
5. WA stakeholders competing for grant
funding - opportunities for
partnerships

24. Carbon Neutral Ltd
9/7 Hector Street West, Osborne Park 6017
1300 851 211
ray.wilson@carbonneutral.com.au
www.carbonneutral.com.au
ABN: 99 124 696 966