1. Greenhouse Gas emissions and carbon trading Richard Eckard Associate Professor / Director

2. CARBON TAX? Price on Carbon –Fixed initial price –Eventual ETS Coverage –Stationary energy –Transport –Industrial processes –Fugitive emissions –Non-legacy waste Agriculture excluded

3. Sectoral Greenhouse Gas Emissions Australia 2008 DCC 2010

4. Methane Nitrous oxide DCC 2010 Agricultural Greenhouse Gas Emissions Australia 2008 Agriculture –58% of all methane –76% of all nitrous oxide Enteric Methane –11% of National emissions Nitrous Oxide from soils –2.5% of National emissions

5. Carbon Farming Initiative –Credits for abatement –Voluntary –Credits for domestic use or export –Forestry credited from 1 July 2010 Legislative scheme –Increases credibility and value of units

6. Carbon Farming Initiative Inclusions –Kyoto sinks Reforestation Afforestation –Kyoto sources Enteric methane Nitrous oxide –Non-Kyoto Soil C sequestration Managed forests Non-forest revegetation Process –Legislation in parliament now –Commence late 2011 Buyers: Altruistic, ethical Carbon neutral marketing Buyers: - Entities facing carbon prices

7. Domestic Offsets Integrity Committee Assess methodologies against principles –National Carbon Offset Standard (NCOS) First meeting early 2011 –Call for methodologies NCOS Integrity Standards –Additionality –Permanence –Measurability & verifiable –Avoidance of leakage –Independent audit –Transparency –Registration Mr Duncan McGregor (Chair)Professor Annette Cowie Mr Rob FowlerDr Brian Keating Dr Mark DangerfieldMs Shayleen Thompson

8. Key gasses Methane –25 times GWP –Mainly from Enteric fermentation Waste management Limited from soils Nitrous Oxide –298 times GWP –Mainly from Nitrogen fertilisers, Legumes Dung, urine, waste Soil disturbance

9. Processes of Nitrous Oxide Denitrification –Warm, water-logged soils –Higher rainfall/irrigated 1 - 5% of N inputs Nitrification –Warm, aerobic soils –Minor losses –Low rainfall 0.01 to 1 % of N Inefficient use of nitrogen –>60% N lost from grazing –>30% N lost from cropping Total N loss 10 kg N/ha BUT: GWP = 298 x CO 2 10 kg N 2 O-N = 5 t CO 2 e/ha

10. Nitrous Oxide Emission Sources DCC 2009 Indirect Emissions (41%) Direct Fertiliser Emissions (19%) Excretion (26%)

11. Nitrous Oxide - Drivers N (NO 3 ) Soil Temperature Soluble C Soil pH Anaerobicity –WFPS Granli & Bøckman 1994

12. Nitrous Oxide Emission Factors Default –1.25% x N DCC 2009

13. Automatic Chambers Micromet system N 2 O Measurement Automatic Chambers & Micromet Systems

14. Mitigation of Nitrous Oxide Choice of fertiliser product Rate of application Application method Frequency of application Time of application Rate Source Timing Placement Formulation

15. Mitigation of Nitrous Oxide Nitrogen Fertiliser (short-term) (15-90%) –Rate, Timing, Source –Placement (eg. Ridges) –Fertiliser formulation Controlled Release Inhibitors (>60%) –Urease –Nitrification De Klein & Eckard 2008 ENTEC®

16. Mitigation of Nitrous Oxide Soil Management (short-term) (10%) –Soil structure Drainage, irrigation, compaction –Stubble management (40%) Retain stubble Conservation tillage and controlled traffic Soil organic matter –Fallow management –Other nutrients

17. In Conclusion An emissions constrained future Carbon Farming Initiative –Opportunities for revenue from offsets Will require net reductions –Unlikely at individual farm level More likely through aggregators Action depends on carbon price!

18. www.greeenhouse.unimelb.edu.au www.piccc.org.au