Carbon farming

Carbon Farming Outreach Program

The Carbon Farming Outreach Program supports Australian farmers and land managers to reduce emissions and store carbon.

This will help us transition to net zero emissions, in line with Australia’s target of net-zero by 2050.

The Program provides a training package and advisor grants, to deliver training workshops across Australia. In addition, the program aims to:

• Build the capacity of trusted and independent advisers to deliver advice to farmers and land managers

• Provide access to clear and culturally appropriate information on carbon farming

Carbon farming workshops

Are you curious about carbon farming and what it really means for your farm?

Join us for a free, practical workshop that cuts through the jargon to give you the facts on carbon farming. We'll explore how it fits into everyday farming, how it might benefit your business, and what you need to know to make informed decisions.

What you’ll get out of it:

• Carbon farming explained – what it is, how it works, and where it fits in agriculture

• Emissions intensity – how to measure and manage your farm’s emissions

• Know your scopes – understanding emissions along the supply chain

• Carbon credits –what’s involved in earning them and if it's right for you

• Your carbon footprint – why it matters and what reducing it could mean for your bottom line

Our next round of workshop dates in late 2025 will be announced soon. To register your interest contact amy.wright@airep.com.au regular updates will be extended via our social media platforms and the Farmer Connect newsletter. Subscribe to this newsletter.

Understanding carbon farming

Carbon farming is a set of land management practices that reduce greenhouse gas emissions and increase the amount of carbon stored in the landscape. It’s about managing your farm in ways that either avoid emissions of carbon dioxide, methane, and nitrous oxide—or actively sequester carbon in vegetation and soils.

At its core, carbon farming aims to:

• Capture more carbon dioxide from the atmosphere through photosynthesis

• Retain more of that carbon in solid forms—like plant matter or soil organic carbon.

But carbon farming isn’t just about trees or soil carbon. It includes all aspects of how carbon flows through a farming system, including:

• Storing carbon in soils and vegetation

• Emitting carbon and other greenhouse gases during farming operations

• Farming carbon as a commodity, for example - selling carbon credits through the Australian Carbon Credit Unit (ACCU) scheme

• Understanding emissions profiles, or calculating a farm’s carbon footprint.

Some people think carbon farming is just about earning ACCUs. That’s only one part of the picture. The broader practice is about understanding and managing emissions and carbon cycling in a way that suits your farm and goals.

Why do we need to care about carbon farming?

Carbon farming presents both a challenge and an opportunity for Australian agriculture. Whether you're looking to improve productivity, access premium markets, or simply future proof your business, understanding your farm's carbon footprint is becoming essential.

Landholders may choose to engage in carbon farming activities for many reasons, which could include:

• Generation of income by earning and selling ACCUs (carbon credits)

• Reducing their carbon footprint and meet sustainability targets

• Qualifying for sustainability-linked finance or lower-interest loans

• Meeting supply chain demands for climate-smart production

• Achieving co-benefits like better soil health, water retention, and resilience to climate extremes.

For some, carbon farming might lead to participation in formal carbon markets. For others, it’s about good farm business - cutting waste, improving efficiency, and preparing for future regulatory or market shifts.

Carbon farming isn’t a one-size-fits-all approach. It’s about knowing what options are available, what makes sense for your farm, and where you want to position your business in the future.

Reducing our carbon footprint

Reducing our carbon footprint on farm is about improving the efficiency of our production systems, while minimising greenhouse gas emissions. Whether it's through strategic fertiliser use, improved grazing management, or energy-efficient practices, small changes can lead to meaningful reductions. Understanding how and where emissions are generated across your business is the first step toward identifying practical actions that benefit both the environment and your bottom line.

Emissions Intensity

Emissions intensity refers to the amount of greenhouse gases (GHGs) emitted per unit of production. In agriculture, this could be emissions per tonne of grain, per litre of milk, or per kilogram of meat. Lowering emissions intensity means producing more with fewer emissions—improving both efficiency and environmental performance.

Emission Scopes

Greenhouse gas emissions are categorised into three “scopes” to help identify where they come from:

• Scope 1: Direct emissions from activities you control—like fuel combustion in tractors, or methane from livestock.

• Scope 2: Indirect emissions from energy you purchase—mostly electricity in agricultural systems.

• Scope 3: Indirect emissions from your supply chain including:

• Pre-farm - emissions associated with the manufacture of fertiliser or pesticide, the transport of stock to farm

• Post-farm - transport of grain, any emissions created because of export or processing of product.

Understanding the “scopes” can help farmers and businesses to identify where efforts should be focused to reduce emissions across the supply chain.

Insetting & Offsetting

• Offsetting is when you invest in carbon reduction or removal projects outside your own operations, to “offset” the emissions you create. This often involves buying carbon credits from third parties.

• Insetting is when you reduce or remove emissions within your own supply chain or farming system. For example, a grain business supporting farmers to increase soil carbon is insetting.

Insetting is becoming a preferred strategy in agriculture, as it supports local productivity and supply chain sustainability.

ACCUs (Australian Carbon Credit Units)

An ACCU is a carbon credit issued by the Australian Government for each tonne of carbon dioxide equivalent (CO₂e) avoided or stored through eligible carbon farming activities. Farmers and landholders can earn ACCUs by registering a project under the ACCU Scheme and meeting strict measurement and reporting requirements. ACCUs can be sold to generate income or used to offset emissions.

A useful resource if considering entering the ACCU scheme, has been produced by the Carbon Market Institute, the Landholder guidance: A checklist for partnering on carbon farming projects.

Climate Active

Climate Active is an Australian Government-backed certification that recognises businesses and organisations that have measured, reduced, and offset their carbon emissions to achieve carbon neutrality. For agriculture, it provides a recognised framework to demonstrate environmental responsibility and align with sustainability goals. More information on the Climate Active Program can be found on there website.

Emissions calculators

There are several tools available to help estimate on-farm emissions — the right one will depend on your production system (cropping, livestock, or mixed farming). Emissions calculators are a great first step toward understanding your farms’ carbon footprint and identifying opportunities for emissions reduction. Some options are:

AIA Environmental Accounting Platform
Designed for mixed farming systems, this tool makes it easy to enter whole-of-farm data and generate a detailed environmental account, including greenhouse gas emissions. Access the AIA Platform

PICCC Greenhouse gas accounting framework tools (GAF) (Primary Industries Climate Challenges Centre)
These are research-grade tools developed in Australia, offering emissions calculations for livestock and cropping enterprises. Suitable for technical users and consultants looking for robust modelling options.
Explore PICCC GAF Tools

MLA Carbon Calculator
Tailored for red meat producers, this calculator estimates livestock emissions and helps you identify management strategies to reduce them. This also has a basic cropping component.
Use the MLA Calculator

Nature repair market

The Platform for Land and Nature Repair (PLANR) is an online geospatial application designed to support landholder participation in ecosystem service markets, including the Nature Repair Market Scheme.  PLANR offers a range of tools for landholders including:

• A mapping tool that includes various data layers (including ACCU Scheme Environmental Plantings eligibility).

• A project cost estimator.

• Environmental accounts tools, including the ability to estimate the biodiversity condition of your property, greenhouse gas emissions baselines, and historic tree and groundcover.

• A ‘Marketplace’ which connects buyers and sellers of ecosystem services.

PLANR is the gateway to begin exploring and planning projects under the Nature Repair Market Scheme.

The first method under the Nature Repair Market Scheme is called the ‘Replanting native forest and woodland ecosystems method’. The method requires a project to generate a score under the National Biodiversity Assessment System (NBAS). Currently, using PLANR is the only way to generate information required as part of the project application process. You can use PLANR to:

• Map your project and import/export a shapefile.

• Provide an initial desktop assessment to inform the required ecosystem starting state assessment and project plan.

• Provide information about your planned project’s ecosystem starting state, the reference ecosystem and the restoration target level, which can then be verified on ground by a suitably qualified person.

• Generate a biodiversity persistence change score (Biodiversity Benefit forecast) using the National Biodiversity Assessment System (NBAS).

On the PLANR homepage there is a link to a short video demonstrating how you can access this functionality in PLANRs mapping tool. Or see this 11-page PLANR guide.

If you are interested in participating in a PLANR introductory information session and demonstration, or if you have any questions about PLANR, please contact planr@dcceew.gov.au.

Natural Capital Accounting

Natural Capital Accounting (NCA) is a way to measure, track and value the natural assets on your property such as soils, native vegetation, water resources, and biodiversity. These natural assets are what we call natural capital, and they play a vital role in the productivity, resilience and long-term value of your farm.

Just as financial accounts track income and expenses, NCA tracks the condition and trends of your natural assets over time. It helps you see the link between the health of your landscape and the performance of your farming business.

Why it matters for farmers

Your land is more than just a place to produce—it’s a living system that stores water, cycles nutrients, supports livestock, and absorbs carbon. When natural capital is in good condition, it can improve yields, reduce input costs, and increase resilience to climate shocks like drought or extreme weather.

Natural Capital Accounting can help you:

• Understand the health of your land and how it’s changing.

• Identify areas for improvement - like building soil carbon or restoring shelter belts.

• Support decision-making - backed by data and local knowledge.

• Communicate environmental performance to markets, financiers, and supply chains.

• Unlock new opportunities - such as sustainability branding, grants, or carbon/environmental markets.

Ultimately, NCA is a practical tool to support better land management, long- term planning, and farm viability.

How it works on the ground

Natural Capital Accounting starts with understanding what you already have and how it’s functioning.

• Map your natural assets
  Identify key features of your property - soils, remnant vegetation, wetlands, and watercourses.
• Assess condition
  Use local data, satellite imagery, or farm records to assess how healthy these assets are. This could include things like soil structure, ground cover, or presence of native species.
• Trackover time
  Build a baseline and monitor changes - e.g. are erosion areas improving? Is ground cover being maintained year-round?
• Value ecosystem services
  Recognise what services your land provides, such as clean water, carbon storage, windbreaks or pollination.
• Use it to guide action
  NCA doesn’t replace your existing records or knowledge - it builds on them. Use it to identify priority areas, justify investment, or track the benefits of changes you’ve made.

Natural Capital Accounting is about making your natural assets visible and valued, just like your machinery or infrastructure. It’s another tool to support sustainable, profitable farming into the future.

Resource summary

• Considering entering the ACCU scheme? Landholder guidance: A checklist for partnering on carbon farming projects
• More information on the Climate Active Program
• AIA Environmental Accounting Platform
• PICCC Greenhouse gas accounting framework tools
• MLA Carbon Calculator
• Platform for Land and Nature Repair (PLANR) 11-page guide.
• Nature Repair Market Scheme