Carbon accounting
Carbon accounting measures the greenhouse gases an entity releases and stores (sequesters).
Net carbon emissions (carbon footprint) = carbon released – carbon sequestered.
Agriculture is unique because its production and land management can impact both sides of the equation. Farming practices can release carbon, but they can also sequester it through specific on-farm actions.
The greenhouse gases considered in agricultural carbon accounting are carbon dioxide (CO2), methane (CH4) and nitrous oxide (NO2).
The carbon footprint or emissions intensity of a product is measured per unit, such as tonnes of CO2 equivalent per kilogram of live weight.
Carbon calculators
There are many free carbon calculator tools available to help you measure your farm’s greenhouse gas emissions. These tools give you useful insights and information to better understand your carbon footprint.
General
Livestock or mixed enterprise
Dairy
Cropping
Viticulture
Horticulture
If you're uncertain about which calculator to choose or need more information on how to calculate your emissions, please reach out to our team for support.
Data you will need to calculate your emissions
Livestock: Livestock information is required in either seasonal or monthly groupings, by livestock category.
- Livestock numbers – consider stock losses, sales, purchased, traded
- Live weight – average live weight (kg/head)
- Live weight gain – estimated average daily (kg/head/day)
- Calving and/or lambing rates
- Wool – number shorn and wool shorn kg/head, greasy wool production (kg/year) and clean wool yield (%)
Fertiliser: Urea, other (tonnes of nitrogen), single super phosphate, limestone applied to soils, fraction of limestone.
Energy and fuel: Annual diesel consumption, annual petrol consumption, electricity source, annual electricity use.
Grain and hay purchase: Proportioned for sheep and cattle.
Vegetation: Area of trees (hectares) and age of trees (year).
Why use carbon accounting?
Measuring carbon emissions on a farm has many benefits, even if you don’t plan to join a carbon market. Knowing your farm’s emissions can help you find ways to improve efficiency and reduce costs. It also supports the growing need for clear reporting on environmental impact. As the world moves toward lower emissions, farms that can show they produce with less carbon or achieve carbon neutrality may have better access to new markets and opportunities.
Full carbon accounting includes Scope 1, 2, and 3 emissions as detailed below.
| Emissions category | Farm produce | Buyer of farm produce |
|---|---|---|
| Scope 1: Direct emissions released as a direct result of making a product | All emissions on-farm from agricultural activity - eg methane emissions from livestock; nitrous oxide emissions from fertiliser, urine, dung and waterlogged soil; and emissions from operating farm machinery | All emissions from product manufacturing/production |
| Scope 2: Indirect emissions from the electricity used to make a product | Emissions from the production of purchased electricity eg to operate water pumps or shearing shed, etc | Emissions from the production of purchased electricity |
| Scope 3: Broader indirect emissions related to the generation and transportation of a product | Upstream/Pre farm emissions: Emissions from purchased livestock / production of feed (grain, hay, silage, fodder, supplements) / production of fertilisers and chemicals / extraction of fossil fuels for electricity and fuel. Downstream/Post-farm emissions: transport emissions / meat processing / retail | All indirect emissions associated with inputs (upstream and downstream) – eg the emissions associated with the product you sell off farm to the buyer |
When calculating emissions for an enterprise, setting a boundary is important. For example do the calculations include Scope 1 and 2 only, or also upstream Scope 3 to the farm gate? If data is collected on all three scopes, the reporting of the emissions can be tailored to what the buyer is asking.
As large corporations are regulated and asked to quantify their greenhouse gas emissions, there will be an increasing need for their suppliers (growers of produce) to share emissions data to inform the corporate greenhouse gas emission bottom line.
There are also corporations who are making voluntary pledges in order to meet investors’ expectations, and who recognise the importance of managing climate risk and opportunities to decarbonise.
It is expected that the greenhouse gas emissions it takes to grow a product will become increasing scrutinised and important.
Industry averages – emissions intensity
Once you know the emissions intensity of your product, you can assess your result against industry averages. You might find the results confirm efficiency in production.
| Product | Industry average emissions intensity^ | Unit of measure |
|---|---|---|
| Chicken meat | 1.8 - 2.2 kg | kg carcass weight |
| Grain production | 0.1 - 0.5 kg | kg grain |
| Dairy | 1.0 - 1.2 kg | kg FPCM |
| Dairy | 8 - 21 t | t MS |
| Beef | 11 - 18 kg | kg live weight |
| Sheep | 6 - 8 kg | kg live weight |
| Wool | 21 - 28 kg | kg wool |
| Wine | 0.6 - 1.5 kg | Litre |
Hold, inset or sell carbon
Once carbon emissions are calculated, there may be a positive carbon result (or potential carbon credit); that is more carbon is being stored than released. If this is the case there may be options to hold, inset, or sell carbon credit/s either via a formal carbon market or via certification to achieve carbon neutrality.
- Hold means the carbon remains available for you to use at a later date (it is not inset and it is not sold).
- Inset means the carbon is used to offset your own emissions internally, to reduce your own carbon footprint.
- Sell means you receive payment for the carbon from someone else externally, so they can use it to offset their emissions.
Carbon neutrality
To be carbon neutral means that a business has net zero greenhouse emissions; that is the carbon sequestered/stored cancels out the greenhouse gases emitted. The first step should always be to reduce the amount of greenhouse gases emitted, assess, and then determine what carbon needs to be sequestered to achieve neutrality. In order to promote a business or produce as carbon neutral, independent certification is needed.
Climate Active
Climate Active is an Australian Government program that supports voluntary climate action by Australian businesses, including the agricultural sector.
Climate Active offers independent certification for either an entire business or a specific product that has credibly achieved carbon neutrality, meeting the standards of the Climate Active Carbon Neutral Standard. Achieving neutrality may require purchasing offsets, insetting, or using your own offsets.
Understanding carbon sequestration limitations
It may not be possible to capture enough carbon on the farm to offset all emissions, as this depends on the property and type of farming. Trade-offs between productivity and economic outcomes may be necessary.