LAND RESTORATION FUND CAIRNS 17 March 2020
Presentation overview • About the Land Restoration Fund ✓ who we are ✓ our objectives • Carbon farming ✓ How the LRF works with the ERF • Co-benefits • The immediate opportunity ✓ LRF investment round 1 2020 2
North Queensland Regional Opportunities The environment and community: Carbon methods: • Environmental Plantings, Human Induced Regeneration, • Diverse ecosystems – rainforest, eucalypt forests, Native Forest from Management Regrowth, Avoided coastal heath, savanna, eucalypt woodlands Clearing, Forestry • Strengths: • Soil carbon methods • Indigenous knowledge of land management and • Beef herd method agriculture, including managing protected areas • Potential for scale and new business opportunities Co-benefit opportunities: • Challenges: • Environment: Threatened wildlife (species – animals and • Natural hazards and changing climate plants), threatened ecosystems, native vegetation, soil health, • Access to trusted providers Great Barrier Reef, wetlands • Socio-economic: Employment and skills, community resilience and environmental connectivity, diversity and human rights • First Nations : Location and participation 3
Land Restoration Fund – how did we get here? Land 1 st Carbon Emissions Energetics Carbon Farming Restoration Carbon Farming Reduction Fund Farming Report 2017 – MLA’s CN30 LRF investment Industry Fund Act 2011 commences Industry up to $8 billion Target 2017 round 1 2020 Roadmap 2017 commitment 2014 Summit 2017 by 2030 2017 4
Our Strategy The Land Restoration Fund is working across three broad areas: 1. Investment in projects that will deliver ACCUs co-benefits. 2. Building capacity across Queensland in carbon farming with co-benefits. 3. Investment in research and development to grow the carbon farming industry 5
Emissions Reduction Fund Crediting Purchasing Safeguarding ERF Reverse To protect Crediting of Auctions abatement ACCUs from purchased registered through the Lowest cost projects auctions abatement 6
Land Restoration Fund builds on the Emissions Reduction Fund Emissions Reduction Fund Land Restoration Fund • Regulates Carbon projects and is also a • Invests in projects delivering Carbon buyer of ACCUs plus Co-benefits • Contracts up to 10 years • Contracts up to 15 years • Lowest cost abatement • Price evaluated for total benefit • For carbon credits only • Pricing in the additional value of carbon projects • Not just land – industrial, coal mine gas, • Only ERF land sector methods energy efficiency, waste 7
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LRF Pilot Projects with First Nations representatives Kick starting the Market Catalysing Action • Balkanu Cape York Development • YACHTDAC ‘ Murra Yambanka Corporation - Strategic analysis of Carbon’ project – building capacity, Cape York Peninsula fire patterns - demonstrate cobenefits and increase carbon abatement partnerships through optimised regional-scale • Gidarjil Development Corporation management ‘Tradition meets innovation’ project – trial a collective approach to carbon farming, demonstrating partnerships 9
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Investment Round 1 - 2020 Current intake closes 15 April 2020 Investment Deliver projects Selection $100 million Assessment • • Register with Clean Independent • Eligibility released for Energy Regulator panel • Value for Money • • Co-benefit reports Priority investment • Co-benefit value • Template contracts Investment Plan 11
Investment Round 1 - 2020 Projects evaluated based on value for money Carbon plus delivery of co-benefit priorities Priority Investment Plan Wetlands & Coastal Ecosystems including the Great Barrier Reef Threatened species and biodiversity Social and economic sustainability 12
Eligibility requirements • Carbon service provider must be signatory to Carbon Industry Code of Conduct • Comply with business checks and agree to publicly share knowledge about the project including results • Projects must be: o located in Queensland o already registered (but not commenced), being registered, or eligible for registration with the Clean Energy Regulator under CFI Act land sector (agriculture, savanna burning and vegetation) methods o compliant with other existing laws to not adversely impact vegetation o clearly aligned with one or more of the three Investment Priorities o capable of generating data for verification as detailed in the LRF Co- benefits Standard 13
Merit assessment • How the project will deliver co-benefits and contribute to our priorities • Project design and risk mitigation (delivery, technical, financial) • Financial and technical capability of applicant and partners • Value for money • Level of assurance for verification of co-benefit outcomes Portfolio of projects selected by external panel 14
Co-benefit standard • Sets out the eligibility and reporting requirements for projects to deliver 'verified' co-benefits • Verified co-benefits will be published through the LRF co-benefit register Co-benefit classes Assurance Proponent assurance: available for co-benefits Soil health clearly linked to carbon activity and location (e.g. Great Barrier Reef soil health ~ soil carbon project) Wetlands Coastal ecosystems Third party assurance: Threatened ecosystems • higher level of evidence Threatened wildlife (includes plants) • required to verify co-benefits for some methods Native vegetation • Accounting for Nature • Aboriginal Carbon Foundation Employment and skills Diversity and human rights Community socio-economic resilience Indigenous carbon (location) Indigenous carbon (participation) 15
LRF Environment co-benefit priorities - some examples ERF projects Catchment priorities for GBR water quality improvement for sediment. 2017 Scientific Consensus Statement https://www.stateoftheenvironment.des.qld.gov.au 16 /biodiversity/species-and-habitat/density-of- threatened-fauna-species-habitat
Growing the Market Support for land managers https https:/ ://www.qld.go .qld.gov.au/ .au/en envir ironment/ onment/cli lima mate/ te/clim limate te-change/land hange/land-res estor toration tion-fund und 17
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Ready for applications 19
Building understanding and knowledge Queenslanders identify 3 main barriers to participation in carbon projects 1. Knowledge • Understanding of carbon farming in general • Potential downsides – including some misconceptions 2. Cost of advice 3. Upfront capital costs 92% 58% 65% 26% of land managers are of land managers feel they of land managers feel that of land managers feel that a aware of carbon farming carbon farming offers an barrier to carbon farming is the have a high knowledge of carbon farming opportunity to diversify risk of future policy changes income sources 20
Local support – rebate program Approved advisors • Carbon Farming Advice Rebate Program of up to $10,000 per applicant for professional fees. • Help for land managers to pay for professional advice to assess for carbon farming projects. • Part of a broader support package to help land managers understand carbon farming, carbon credits and the new concept of co-benefits. 21
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Local support – approved advisors Approved advisors • Free online training is available to become an approved advisor. Please see our website to check eligibility and how to apply. • The rebate program supports education and knowledge sharing, creating a network of experienced advisors to advise on carbon farming opportunities. 23
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Suggested next steps 1. Read the documents (guideline, application form & template agreement, PIP, co-benefit standard) 2. Identify a suitable carbon method (i.e. ERF method) Evaluate your “assets” and identify potential co -benefits 3. 4. Calculate costs of project: activities, reporting, opportunity costs, risk (seek advice) 5. Estimate ACCU yield 6. Scope project: eligible interest holders, tax considerations 7. Determine your price per ACCU (including co-benefits) 8. Develop application 25
Where to find more information Land Restoration Fund website: ht https: ps://ww //www.qld. qld.go gov.au au/e /envi viron onment ment/c /clima mate/ e/clima mate-cha hang nge/ e/lan and-rest estor oration on-fun fund 26
Where to find more information Queensland Globe, Biomaps, Regrowth Management Guides, and maps online Clean Energy Regulator website and Looc-c have information about carbon yields
Recap – investment overview • The LRF invites applications to its first investment round • Applications must be submitted online • Projects must deliver Australian Carbon Credit Units, (issued by the Clean Energy Regulator) • Applicants must specify the price per ACCU they will deliver, including co- benefits • The co-benefit component of the funding to successful projects will be paid annually • Payments for ACCUs will be made on delivery 28
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