1. What happens if I have a fire, flood or drought?
Natural events (acts of god) are unavoidable and you will not be liable for any short term losses of carbon, if there is no negligence involved. In the event of a fire that has caused tree death within the Carbon Estimation Area (CEA), Select Carbon will restratify (cut out) the fire-affected area, so that you aren’t receiving carbon credits from areas that have been impacted. These fire-affected areas will remain excluded from the project until it has regenerated to the point in the growth cycle it was before the fire occurred. At this point, the landholder will start to receive carbon credits again. As fire presents an ongoing risk to all vegetation-based projects, Select Carbon recommends that adequate fire breaks are in place at all times to help reduce the risk. Select Carbon also recommends you maintain a buffer in the number of ACCUs you sell, to cover unforeseen events.
2. Do I have to include all my land?
No. You get to determine how much and which land will be in a project. Often areas that have been identified as suitable for carbon farming are areas that are considered less favourable to grazing to landholders.
3. When do I receive my first income?
Once ACCUs have been issued for your project and Select Carbon has transferred them from your ANREU account to government’s ANREU account, you will be paid at the price agreed to at auction and set out in the contract. Typically a project can expect to receive their first payment approximately 12 months after the project has been registered.
4. Do I have to sell the ACCUs when I register them?
No. After listing, they are like a share and can be held or sold.
5. Who pays for the Auditing Costs?
Select Carbon meets all costs associated with compliance and auditing. Select Carbon is only paid a success fee once the landholder has been paid.
6.What are the costs of undertaking a project to the landholder?
There is no set fee that the landholder is required to pay. The landholder is required to undertake the management activity they choose under the method. For example, the landholder will be required to cover the costs associated with Feral animal management such as setting up and maintaining goat traps, or upgrading fencing. Likewise, if the landholder chooses the activity Controlling the timing and extent of grazing, they will be required to meet the costs commonly associated with this activity, such as the costs of mustering to reduce stock, any new or upgrades of fencing, upgrading of watering points and increased record keeping. Other ongoing maintenance costs include maintenance of firebreaks and fence lines.
7.Do I have to destock my property in order to receive carbon credits?
No. The HIR method allows landholders to control the timing and extent of grazing. For example this may involve a landholder introducing a new grazing approach (ie. cell grazing, upgrading defunct watering points or upgrading fences) within the CEA. Alternatively the landholder may simply decide to reduce stock numbers so that young regeneration isn’t being impeded upon and can grow to maturity, therefore allowing the landholder to receive income from the sale of carbon credits instead.
8. If I decide to reduce my stock to help store carbon in vegetation, how many stock am I allowed to run on my property?
There is no set number of stock you are required to remove or keep on your property if you decide to use the activity: Controlling the timing and extent of grazing. This decision is largely left up to the landholder as every property is different. As long as the reduction in stock, or the rotating of stock is likely to have a meaningful and positive impact on young regeneration across the CEA, then the project will be achieving its goals of helping the young regeneration achieve Forest Cover.
9. How do you know if project is achieving its goal of helping young regeneration achieve forest cover and remove greenhouse gases from the atmosphere?
Select Carbon has a rigorous monitoring program which includes the use of remote sensing, forest cover change and on-ground random plots that staff regularly visit to ensure regeneration is occurring in the project. Our monitoring allows us to have a very good understanding of the current health and growth of regenerating forests.
10. What areas are eligible to receive carbon credits and how does Select Carbon calculate this area?
Select Carbon uses government data and its own in-house data to analyse imagery for the previous 10 years (also known as the baseline period). During this analysis, we look for areas that have been suppressed (continually non-forest) for 10 consecutive years before project commencement. We then use these areas to determine if they have potential to turn into forest if the suppression activities were ceased, which depends on the landscape and the type of vegetation present in these areas which is assessed by Select Carbon staff during a site visit.
11. What are the next steps?
If you would like to find out how many ACCUs you could be eligible for on your property, we are more than happy to provide you with a detailed feasibility, free of charge. We do however ask that landholders sign an Exclusivity/Confidentiality agreement which is a 12-month agreement between the landholder and Select Carbon which gives Select Carbon some assurance that the extensive work undertaken by the company is not in vain and if you did decide to proceed, the landholder agrees to work with Select Carbon to develop the project.