Appendix A International and domestic baseline and credit schemes Scheme Description Eligibility and coverage setting The The CFI Additionality Each CFI Carbon Farming covers is tested at project must Farming Initiative sequestration both the use an Initiative (CFI) is an and emissions project level approved (CFI) Australian reductions and methodology crediting from some of methodology that sets out scheme that the sources approval the baseline began in that are not stages of the against which December covered by the process. abatement is 2011. It is a carbon pricing measured. voluntary mechanism, At the scheme that namely from activity Identifying the provides agriculture, level, a most likely incentives to legacy waste regulatory baseline landowners for (emissions test is scenario will activities to from waste applied to depend upon sequester deposited ensure that the proposed carbon, and prior to the the activity activity. For avoid or introduction of is not example, reduce the carbon already baselines can greenhouse pricing required by be determined gas emissions. mechanism) law. on an absolute and land use, or emissions land use The CFI is The activity intensity basis, created under change and type must all CFI the Carbon forestry projects must also be (LULUCF). Credits included on reflect a (Carbon the reduction in ‘positive Farming Participation absolute list’, Initiative) Act is open to specified in emissions 2011 and is individuals; the Carbon levels. administered sole traders; Credits by the Clean businesses; (Carbon All baselines Energy local, state and Farming in the CFI are Regulator. The territory Initiative) specified at the CFI is also government Regulations project activity supported by bodies; and 2011. the Domestic trusts. Positive list Offsets Participants of activities all CFI Integrity must be are projects adopt Committee registered as a considered static (DOIC)—an to be baselines, new ‘recognised
Appendix A International and domestic baseline and credit schemes Scheme Description Eligibility and coverage setting Farming Initiative (CFI) The Carbon Farming Initiative (CFI) is an Australian crediting scheme that began in December 2011. It is a voluntary scheme that provides incentives to landowners for activities to sequester carbon, and avoid or reduce greenhouse gas emissions. The CFI is created under the Carbon Credits (Carbon Farming Initiative) Act 2011 and is administered by the Clean Energy Regulator. The CFI is also supported by the Domestic Offsets Integrity Committee (DOIC)—an The CFI covers sequestration and emissions reductions from some of the sources that are not covered by the carbon pricing mechanism, namely from agriculture, legacy waste (emissions from waste deposited prior to the introduction of the carbon pricing mechanism) and land use, land use change and forestry (LULUCF). Participation is open to individuals; sole traders; businesses; local, state and territory government bodies; and trusts. Participants must be registered as a ‘recognised Additionality is tested at both the project level and methodology approval stages of the process. At the activity level, a regulatory test is applied to ensure that the activity is not already required by law. The activity type must also be included on the ‘positive list’, specified in the Carbon Credits (Carbon Farming Initiative) Regulations 2011. Positive list of activities are considered to be Each CFI project must use an approved methodology that sets out the baseline against which abatement is measured. Identifying the most likely baseline scenario will depend upon the proposed activity. For example, baselines can be determined on an absolute or emissions intensity basis, all CFI projects must reflect a reduction in absolute emissions levels. All baselines in the CFI are specified at the project activity all CFI projects adopt static baselines, new
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