Exploring the barriers to farmer participation in soil carbon projects under the Australian Carbon Credit Unit Scheme

Abstract

ABSTRACT The Australian Carbon Credit Unit Scheme was established to incentivise reductions in emissions or carbon storage. However, there has been low participation by farmers in soil carbon projects since the first soil carbon method was established for agriculture in 2014, even though carbon prices are high and management changes to sequester carbon on farms should be complementary to other business outcomes. This study explores the barriers that might limit participation in soil carbon projects. A novel approach is that instead of interviewing landholders, we worked with agents, service providers and agencies in Australia to gain their insights about the participation challenges for farmers. The main barriers identified are information gaps, risk and uncertainty about returns, high upfront costs, poor knowledge, limited business cases and program complexity. Potential opportunities to overcome barriers include increasing awareness of and access to factual and science-based information, reducing risk and uncertainties, reducing measurement and practice change costs, increasing financial support and incentives, quantifying environmental benefits and complementary benefits of the practices, and simplifying the methods and program systems. This study also suggests better business models for carbon projects need to be developed, with adjustable scenarios, so that farmers can tailor them to their enterprise.