The Emissions Reduction Fund: Benefits for Farmers

Department of the Environment, 2014

The Emissions Reduction Fund will provide farmers and landholders with new ways to increase the productivity of their land and generate revenue by lowering emissions.

Practical projects with real results

The Emissions Reduction Fund will support a range of activities across the land sector that will provide direct benefits to farmers, like lower energy bills, improved water quality and better soil productivity.

It will do this by facilitating projects on the land that improve the environment as well as reduce emissions. These projects range from capturing methane produced by livestock, to revegetating unproductive pastures, and storing carbon in the soil.

Take the example of an Australian farmer who has identified an unproductive pasture that was cleared many years ago and now suffers from dry land salinity.

The Fund could assist the farmer to grow a combination of permanent environmental tree plantings and small-scale forestry plantings in targeted sites on their property.

In the short term, these plantings will assist in salinity management for the surrounding pastures. Over the long term, the growing trees will capture carbon dioxide from the atmosphere and provide the farmer with a range of benefits including a potential income source from the sustainably harvested wood products.

Building on the success of the Carbon Farming Initiative

The Emissions Reduction Fund builds on the Carbon Farming Initiative (CFI), a successful voluntary carbon offset scheme with which many farmers and landholders are familiar.

The Fund streamlines and improves a number of processes under the CFI to support greater participation from farmers and landholders:

  • A new 25-year permanence option will be offered, giving landholders greater flexibility around the long-term use of their land.
  • Simpler reporting, verification and audit processes will be required; reducing administration costs.
  • More flexible land title requirements will be implemented to make it easier for project owners to pool their activities (‘aggregate’) and benefit from the Fund.

More information

Details about the Emissions Reduction Fund are available at:

Note: While the Commonwealth has made reasonable efforts to ensure the accuracy, correctness or completeness of the material, the Commonwealth does not guarantee, and accepts no liability whatsoever arising from or connected to, the accuracy, reliability, currency or completeness of this material. Any references to the potential costs or benefits of undertaking an activity in accordance with an emissions reduction method are estimates only. This material is not a substitute for independent professional advice and entities should obtain professional advice suitable to their particular circumstances.