<
https://reneweconomy.com.au/cefc-backs-low-cost-loans-to-help-farmers-buy-in-to-carbon-removal/>
"Farmers will soon be able to take out loans discounted by the government-owned
green bank to cover the cost of planting native trees and shrubs on their land
to draw down carbon.
The concessional loans courtesy of the Clean Energy Finance Corporation (CEFC)
and Rabobank are intended to cover the upfront cost of planting native trees on
their properties before the vegetation starts sequestering carbon dioxide and
paying itself off via carbon credits.
The agribusiness financier will kick in 0.15 per cent of the discount and the
government-owned green bank one per cent, with the latter committing $200
million towards the endeavour.
CEFC head of natural capital Heechung Sung was hopeful the meaningful discount
would encourage more farmers to participate.
“This program provides a way for the farming sector to help reduce emissions
through carbon sequestration and to potentially create an additional income
stream for farmers,” she said.
Under the Australian carbon credit units regime, landowners and farmers can
participate in a number of land-based carbon removal schemes to attract extra
income.
Participants earn credits for every tonne of carbon stored or avoided, which
can then be sold to the federal government or the secondary market where they
are bought by companies wanting to offset their emissions.
Ms Sung said environmental planting sequestration had not been as popular as
the lower cost techniques, such as human-induced regeneration methods that
involve letting pastures regenerate and running fewer cattle and sheep.
By providing concessional loans and leveraging Rabobank’s relationship with
agribusiness clients to educate them on the opportunity, Ms Sung is hopeful
more farmers will take the leap and produce more of the high-quality
environmental planting credits."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
