We warn potential investors in vegetation or sequestration projects to be aware of misleading claims, particularly about unrealistic minimum returns on investment or returns that are government guaranteed.
Potential revenue from sequestration offsets projects under the Carbon Credits (Carbon Farming Initiative) Act 2011 can vary depending on a range of factors. Considerations should include decisions on who will own and manage the project, the type, scale and location of a project, the crediting strategy (when to report and apply for Australian carbon credit units), and the potential of the project to generate additional benefits and revenue streams.
The following examples have been prepared to provide guidance on expected abatement from a permanent environmental planting offsets project and to demonstrate the differences in abatement levels across Australia.
Each example is based on one hectare of permanent environmental planting and makes the following assumptions:
- mixed species environmental planting
- non-harvested planting
- 1000 stems/hectare density
- normal weed control intensity
- no extraneous natural events (i.e. fire, drought), and
- planting in January 2013.
Each tonne of carbon dioxide equivalent (CO2-e) abatement represents one Australian carbon credit unit.
Expected abatement (tonnes of CO2-e)
| Number of years | Kyogle, New South Wales | Leongatha, Victoria | Gold Coast Hinterland, Queensland | Central Tasmania | Geraldton, Western Australia |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 1 | 1.5 | 1.5 | 1.39 | 1.43 | 1.28 |
| 5 | 43.34 | 43.3 | 26.23 | 36.49 | 9.96 |
| 10 | 155.36 | 155.1 | 92.40 | 130.18 | 33.38 |
| 20 | 328.46 | 327.69 | 194.52 | 274.1 | 71.52 |