Wow,   what a great  header!    Wish it was mine!

But no,  its another GREAT example of the Voluntary Market in action.  

 I've been musing about the Voluntary market, and how in my opinion we'll need a robust Voluntary market NOT dependent on Government. 

So, according to  'V-Carbon News'  " TJ DiCaprio, Microsoft's Senior Director of Environmental Sustainability, announced Microsoft's new wave of offset purchases at last week's REDD+ Talks in California. Microsoft has chosen to partner with The CarbonNeutral Company to invest in carbon reduction projects that preserve forests and wildlife while generating jobs and funding education. Projects supported include Terra Global Capital's VCS/CCB-verified Oddar Meanchey REDD+ project in Cambodia. A new Ecosystem Marketplace article takes a closer look into the technology giant's thinking behind its carbon offsetting strategy as part of its goal to strengthen its own operations while supporting work in developing countries".  click here to read the whole story. 

Now, imagine that there was a group over here, which could provide the same  'integrated' approach to a corporates needs  -  AND  which was based in, and relied on Regional Australian generated credits and had appropriate links into education and other social networks.   Wow, then we would be getting powerful for our own climate needs and long term sustainability of farmers and our landscape. 

Dream on?   

So,  I promised that I'd  be letting you know more about the 'Voluntary Market' and even those  'CDM type'  credits the Opposition is talking about.

The best known company Internationally who approves 'methodologies'  is the Verified Carbon Standard or VCS.  They act in a very similar way to our  Carbon FArming Initiative rules -  but with many more category of credit available.   They also support the CDM  (Clean Development Mechanism) methodologies.

 Funny enough,  a perfect example of the type of credit which I understand could be available in addition to the CFI  under the Oppostion crossed my desk this morning.  Click here to read it all, but in essence its about the VCS  approving  a revision of CDM methodology AMS-III.BC, "Emission reductions through improved efficiency of vehicle fleets".

So,  any fleet of vehicles which shows they adhere to the methodology via energy efficiencies would be able to claim a reduction in emissions and earn a credit  - which, under the Opposition would be available for sale to the Government.    This could suit  Linfox,  or other large trucking firms for example. 

If done under VCS rules, the credit would also be available to sell Internationally.  

Yes, it does concern me that Farming Credits  would have so much competition.   For this reason we are supporting the  newly formed   Australian Carbon Co-operative.   Farmers will need to gather together to ensure they are able to get economies of scale on pricing, as well as blocks of carbon to sell direct to polluters.  More later!  

This is an amazing time -    I don't think I've lived through a  pre-election period like it.   The Government is attempting to get through as many things as possible, as even they seem to have accepted the inevitability  of the change-over.  Meanwhile,  the Opposition is in the mode that would normally take place AFTER an election.   Politics sure is a funny game.  I think it prudent not to assume anything and be aware of what might happen under either scenario.

So, Greg Hunt,  shadow minister for climate action, Environment and Heritage has fleshed out more of what will happen in this area should the Opposition win Government. Click here for the full story,  but here are the main points for our stakeholders:

• They agree on: 1. The 'science of climate change', 2.  the targets to reduce emissions -  ie the 5% by 2020 (which may be far too low to actually stall climate change)  and 3.on using markets as the best mechanism to reduce emissions.  

•They will keep and expand the Carbon Farming Initiative -  meaning we have to compete with energy efficiency - which is usually understood to be a cheaper alternative to our 'natural ecosystem'  solutions.

They have said they will offer a 25 year project period for these credits -  hopefully adding choice - however it will affect price.    One of the main things is to 'unblock'  the CFI pipeline for farmers - to put the 'farming'  back into the Carbon Farming Initiative!  

However,  to actually stall climate change, we must take many millions of tons out of the atmosphere - and only photosynthesis can do that.  ONe day the world will wake up to that reality. 

•So, with the Governments  'tax'  becoming a market in 2015 -  looks like a market either way.    BUT, how do farmers make sure they get a fair price -  that is yet to be played out,  but one thing is for sure -  Farmers will have to fight to be paid fairly, and have access to more than just the 'Government'  as a buyer.   This speaks to two things for me: 

1.  We need a robust Voluntary market -  which involves marketing our 'value added'  credits at home and abroad.  (Value added =  improved resilence to climate change, improved productivity and assisting to drought proof Australia) Under the Coalition, they are the only buyers and this is just not enough.

2. We need excellent  'aggregations'   -  Structures run by  farmers, for farmers.  NOT just city based businesses -  structures where the money from the credits will flow back into the Regions.  There is already one such  -   The Australian Carbon Co operative (ACC).  Click here to read a little about them.  If ever there was a case for a new farmer co operative, surely the  carbon market is one.  Greg Hunt acknowledges this  "There will be an opportunity for organisations to act as aggregators and bid into the market as a group.  As an example, .......  Farmers may work together to deliver carbon capture and storage in soil, or landowners to achieve abatement through revegetation or reafforestation of marginal lands".

So, that is why  we'll be raising the profile and understanding of the Voluntary market - up until now the more 'maligned'  and dismissed market due to its size.    As I've said before,  niche markets can work!

We are also talking with the  ACC  to move those excellent values along for farmers.

Will keep you posted!   

Now that it is looking more and more like the Voluntary Markets will be  very important,  its time to get to know them!

 click here and get learning!.   These guys are a company, not a Government, and they are rapidly becoming THE go-to system for creating methodologies.  This is also a glimpse into the future if the Coalition wins Government because it encompasses many of the things they are talking about in addition to the Carbon Farming Initiative - ie  Energy Efficiency methodologies.   They are also not stuck on the 100 year rule. 

Lets make the future work for us!   

Its hard to get any 'balance'  in the discussion at the moment,  so really had to send this one out!

Click here for  a balanced view 

Further to yesterday's  'keep on keeping on'  message,   click here  to see the latest in investments worldwide in the Voluntary Market Space.

The fundamentals  have NOT gone away: -

•climate change and the need to do something. 

•Need for business to show they are doing something.

•The biggest polluting countries just coming on line. 

•The ability to market good quality credits - such as soil c credits, for a premium.

I guess because we have 25 years of marketing experience from our previous life, we are not afraid of a niche market  -   remember the beginnings of the Organic market?

Also, there is more to the 'on farm'  carbon story than just the Carbon Farming Initiative and Carbon Credits.   Think  'integrated carbon farming'  .   A carbon farm plan which may include biomass,  biochar, farm forestry  and others.    This is how we will develop the carbon farming conference this year -  examining and developing  ALL the areas,  now we have an understanding that Carbon is a new commodity with various potentials.  Stay tuned!

Did you hear about the drop in EU Carbon Credit prices overnight?  Does it spell disaster,  why even keep on going on this crazy  -  'farmers can save the soils and improve the CO2 problem at the same time, and benefit from productivity gains at the same time?'

Well,   what you expect me to say?   OF COURSE WE  WILL KEEP GOING!  The funny thing about this space is how, no matter what seems to be happening on the low side,  things are happening on up side which have simply kept us going!

 Couple of recent points to keep your spirits up:

•The Coalition, as recently as today,  re-iterates support for soil carbon and the CFI  -  with better time frames Click here for news

•China, quite a large polluter,  is starting to enter the carbon market space - now there's a market! find out more

 The issue is -  Stop now and have no hope of taking part, or keep on going and manage to be 'in the right place at the right time'  when things turn around, which they will - climate change is now an established risk.  ALSO, it will take time for farmers to learn and then implement.  The wheel has started to turn  -  NO  reason to stop it now! 

The cost of Soil Carbon Measurement  (yes, it needs capitals,  its like  the Holy Grail!) has always been one issue holding back the development of a soil carbon meth.   We've never been particularly worried about that cost, as we know that business drivers will drive that down,  the minute we have an approved soil c. measurement protocol   -    we have many great minds out there.

However,  CSIRO has won funding to progress this as well in the second round of the Filling the Research Gap: 

An innovative solution for accurate and affordable estimates of soil carbon—CSIRO.

Funding of $1,227,515 ex GST

This project is developing a proof-of-concept prototype system for measuring soil condition into a field-deployable system. This will assist land managers to effectively measure and detect changes in soil organic carbon stores and will provide reliable data to improve decision making and management.

There are other, more 'trade' focussed projects winning funding now too, and to see the whole round results  click here

Many times in our 'carbon market for farmers and the soil'  journey,   we have been repremanded for suggesting that it even had any value, given that the Soil would have to be traded in the Voluntary Market and 'everyone knows'  the Voluntary Market is the small,  low end of the market.   How could we hope to make it work, don't  you need the 'mandatory market'  with its super - large (low priced)  orders?. Well, we always thought that the Soil holds a key to climate change mitigation - AND there is many other reasons to make sure we 'save our soils'.  The Carbon Market is a tool to make this happen. And soil carbon is 'gourmet carbon' -  the best of the best of stories.

Low and behold - check out the direction of the Voluntary Market. "In parallel with the exodus of market participants from the Kyoto Protocol's Clean Development Mechanism, a whopping 80 percent of project developers and investors surveyed for Point Carbon's newly released Carbon 2013 report expressed interest in exploring the voluntary carbon markets as an alternative avenue".  Click here for report

Wow and Wow -   maybe the Voluntary Market will be THE  market -   and we still believe we can make it work.   Once city folk understand the win/win that carbon farming represents, they will be happy to support our farmers.

Still, we wait for the soil carbon methodology under the CFI to arrive.  Slowly, things are moving. Given the urgency of the job ahead, it can't come soon enough.   We'll learn as we go,  and farmers can be the climate heros they deserve to be. 

Now, we all know - Australia  is NOT the only country  putting a price on pollution.  

Here is a   Groovy Map  which shows in 'easy to read'  detail.

 What this says to me is that there will be a lovely BIG market  to play in - and we'll need to be competitive -  we need LOTS of experience in putting  'methodologies'  in on our farming land, managing our 'carbon rights'  and trading.   Again, we always also say  - Don't sell all your credits now -  the market might improve over the years.   Stay as informed as you can about what is happening in the markets and get educated about your  'future farm' -  farmers now control a VERY important resource - CARBON - and they can't mine it, so they have to leave you with the right to own it!   

Don't forget that BioMass  is also full of carbon and has potentials as well!  

Regional Australia can generate good income, have job opportunities and be a leader in CO2 reduction -  its worth a good try.