The Clean Energy Regulator warns potential investors in vegetation or sequestration projects to be aware of misleading claims, particularly about unrealistic minimum returns on investment or returns that are government guaranteed.
Potential revenue from sequestration offsets projects under the
Carbon Credits (Carbon Farming Initiative) Act 2011 can vary depending on a range of factors. Considerations should include decisions on who will own and manage the project, the type, scale and location of a project, the crediting strategy (when to report and apply for Australian carbon credit units), and the potential of the project to generate additional benefits and revenue streams.
The following examples have been prepared to provide guidance on expected abatement from a permanent environmental planting offsets project and to demonstrate the differences in abatement levels across Australia.
Each example is based on one hectare of permanent environmental planting and makes the following assumptions:
Each tonne of carbon dioxide equivalent (CO2-e) abatement represents one Australian carbon credit unit.
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.