`[Don’t delete]
[Don’t delete]
[Don’t delete]
EXPOSURE DRAFTCarbon Credits (Carbon Farming Initiative - Reducing greenhouse gas emissions from fertiliser in irrigated cotton) Methodology Determination 2014
Carbon Credits (Carbon Farming Initiative) Act 2011
I, Greg Hunt, Minister for the Environment, make the following determination.
Dated
Greg Hunt[DRAFT ONLY—NOT FOR SIGNATURE]
Minister for the Environment
Contents
Part 1Preliminary
1Name of determination4
2Commencement4
3Authority4
4Duration4
5Definitions4
Part 2Irrigated cotton projects
6Irrigated cotton projects7
Part 3Project requirements
Division 3.1Eligible projects
7Operation of this Part8
Division 3.2Application for declaration
8Emissions Intensity Reference Period Maps8
Division 3.3Management action
9Management actions8
10New management actions8
Division 3.4Emissions intensity reference period
11Determining the emissions intensity reference period9
Division 3.5Project area requirements
12Project area10
13Stratification10
14Mapping format and precision10
Part 4Net abatement amount
Division 4.1The net abatement amount
15The net abatement amount12
16Overview of gases accounted for in abatement calculations12
Division 4.2Method for calculating net abatement amount
17Calculation of the carbon dioxide equivalent net abatement amount13
18Inputs required by the Irrigated Cotton Calculator14
Subdivision 4.2.2Baseline emissions
19The baseline14
20The variance discount15
Subdivision 4.2.3Project emissions
21Project emissions15
Part 5Reporting, record-keeping and monitoring requirements
Division 5.1Operation of this Part
22Application17
Division 5.2Offsets report requirements
23Information in each offsets report17
Division 5.3Record-keeping requirements
24Records that must be created and kept17
Division 5.4Monitoring requirements
25General18
26Cotton area18
27Lint yield19
28Synthetic fertiliser19
29Green manure19
Part 1Preliminary
11.1Name of determination
This determination is the Carbon Credits (Carbon Farming Initiative - Reducing greenhouse gas emissions from fertiliser in irrigated cotton) Methodology Determination 2014.
21.2Commencement
This determination commences on the day after it is registered.
31.3Authority
This determination is made under subsection 106(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.
41.4Duration
NoteSee subsection 122(1) of the Act.
This Determination remains in force for the period that:
(a)begins when the determination commences; and
(b)ends on the day before this determination would otherwise be repealed under subsection 50(1) of the Legislative Instruments Act 2003.
51.5Definitions
In this determination:
Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.
cotton area in relation to a given year and project area, is an area of land within the project area that is the aggregate of the paddocks on which cotton was planted and irrigated.
NoteThe cotton area is a subset of the project area and is expected to change on an annual basis due to a range of factors, including water availability and rotational cropping. The cotton area does not include parts of the project area on which cotton was not planted in a given year. The cotton area does not need to have a single boundary.
Cotton Research and Development Corporationmeans thestatutory authority of that name, established under section 8 of the Primary Industries Research and Development Act 1989.
emissions intensity reference periodis a historic period from which data is sourced in order to calculate the emissions intensity of the baseline.
enhanced efficiency fertilisermeans a fertiliser that can reduce nutrient losses from the soil while increasing nutrient availability toa plant growing in that soil.
green manure means a legume that is planted, but not harvested,on a given paddock in order to improve the soil for a subsequent cotton crop.
historic management actions means all management practices undertaken with respect to a project area during the emissions intensity reference periodthat could impact on nitrogen fertiliser use efficiency.
NoteManagement practices that could impact on nitrogen fertiliser use efficiency are described in subsection 10(4).
Irrigated Cotton Calculator means the Calculatorof that name published by the Department on its website to calculate the carbon dioxide equivalent net abatement amount in accordance with this Determination and includes updates to the tool published on the website which:
(a)update inputs and variables used by the tool consistent with the latest National Inventory Reports and carbon dioxide equivalence and applicable methods under s 10(3) of the National Greenhouse and Energy Reporting Act 2007;
(b)are of a minor nature; or
(c)are necessary or incidental to updates referred to in paragraphs (a) or (b).
NoteThe Irrigated Cotton Calculator is available via the Department’s website.
irrigation status,in relation to a paddock, means whether water was applied to the thewhole area of the paddockat least once.
lint means unprocessed cotton; the fibrous material of a cottonboll.
National Inventory Reportmeans the most recently published document that is:
(a)known as the National Inventory Report; and
(b)prepared by the Department in fulfilment of obligations that Australia has under the Climate Change Convention.
new management actionmeans a project management action that:
(a)is undertaken with respect to acotton area during the crediting period; and
(b)differs from historic management actions.
A new management action can include an enhancement or improvement to a historic management action.
NoteNew management actions must be consistent with section 10.
nitrogen fertiliser use efficiency means the ratio of lint yield to nitrogen, applied via synthetic fertiliser.
paddock means a defined area of land with a single boundary within a project area on which cotton could be grown during either the emissions intensity reference period, the crediting period, or both.
project management actions means all management actions undertaken on a project area during the crediting period.
stratificationmeans the division of a project area into one or more paddocks.
synthetic fertiliser means a product, including urea, applied to soil to enhance soil fertility which has a manufacturer’s label that guarenteesa minimum nitrogen content:
(a)for solid fertilisers, greater than or equal to 0.5 per cent; or
(b)for liquid fertiliser and solid fertiliser applied in solution greater than or equal to 0.1 per cent.
Note Synthetic fertilisers may include products with an organic base that are supplemented, where necessaryto meet the applicable minimum nitrogen contents, with inorganic nitrogenous compounds.
tCO2e means tonnes of carbon dioxide equivalent.
yield, with reference to cotton lint,means the amount (mass) produced.
NoteOther words and expressions used in this determination have the meaning given by the Act. These include:
crediting period
eligible offsets project
emission
greenhouse gas
legislativerules
offsets project
offsets report
project
project area
project proponent
Regulator;and
reporting period.
Part 2Irrigated cotton projects
62.1Irrigated cotton projects
(1)For paragraph 106(1)(a) of the Act, this determination applies to an emissions avoidance offsets project which aims to avoid emissions from the cultivation of irrigated cotton by increasing the nitrogen fertiliser use efficiency of that process.
(2)A project covered by subsection (1) is an irrigated cotton project.
Part 3Project requirements
Division 3.1Eligible projects
73.1Operation of this Part
For paragraph 106(1)(b) of the Act, this Part sets out requirements that must be met for an irrigated cotton project to be an eligible offsets project.
Division 3.2Application for declaration
83.2Emissions Intensity Reference Period Maps
At the time of the application under section 22 of the Act, the project proponenet must provide the Regulator with an annual map for each year in the emissions intensity reference period in which there was a cotton area, stratified in accordance with section 13.
Division 3.3Management action
93.3Management actions
(1)For each year in the crediting period in which there is a cotton area, at least one new management action must be undertaken either before or during the year which aims to increase the nitrogen fertiliser use efficiency of the cotton area in respect of that year.
(2)For each project area,a project proponent must provide the Regulatorwith the following:
(a)a description of the historic management actions undertaken during the emissions intensity reference period;
(b)a description of the new management actions undertaken during the crediting period;and
(c)an explanation of how the new management actions are consistent with the requirements in section 10.
103.4New management actions
(1)A new management action for the purposes of subsection 9(1) must not be inconsistent with the relevant myBMP (Best Management Practice) standard for the action, as published by the Cotton Research and Development Corporation.
NoteThe Cotton Research and Development Corporation’s Best Management Practice standards are available at:
(2)At least one new management action undertaken for the purposes of subsection9(1)must be demonstrated tohave the potential to increase the nitrogen fertiliser use efficiency of the cotton area.
(3)Nitrogen fertiliser use efficiency can be increased by:
(a)improving the lint yield of the cotton area without a corresponding increase in the rate of nitrogen applied via synthetic fertiliser; or
(b)decreasing the rate of nitrogen applied via synthetic fertiliser to the cotton area without a corresponding decrease in the lint yield.
(4)Actions which may achieve the outcomes specified in subsection (3) include, but are not limited to,modifying the synthetic fertiliser:
(i)application rate;
(ii)application timing;
(iii)application method;
NoteFor the purposes of (2)(iii), application method refers to how the synthetic fertiliser is applied. For example, via aerial spraying or placement at depth in the soil.
(iv)efficiency by the application of an enhanced efficiency fertiliser;or
(v)a combination of the above modifications.
Division 3.4Emissions intensity reference period
113.5Determining the emissions intensity reference period
(1)The emissions intensity reference period is the six year period starting from the day six years before the first day of the crediting period.
(2)The emissions intensity reference period must include a minimum of three years in which the project area included a cotton area.
(3)In order for a year to count for the purposes of subsection (2), the information required under Division 5.4 must be available for that year.
(4) If information required under Division 5.4 is available for a year during the emissions intensity reference period in which the project area included a cotton area, that information must be inputted into the Irrigated Cotton Calculator. For the avoidance of doubt, data for the purposes of Division 5.4 is not required for every year during the emissions intensity reference period in which the project area included a cotton area.
(5)If the requirements in subsection (2) are not met in the period mentioned in subsection (1), the emissions intensity reference period can be extended, up to a maximum of three times, by moving the start date to a year earlier until the requirements are satisfied.
NoteUnder this subsection, the emissions intensity reference period may need to be extended to either 7, 8 or 9 years for the project to have three years of relevant cotton data and thus be an eligible offsets project.
Division 3.5Project area requirements
123.6Project area
(1)A project area must be the same area of land in all years in both the emissions intensity reference period and in the crediting period.
(2)For the avoidance of doubt, subsection (1) does not require a project which consists of project areas to include the same project areas in each year in the emissions intensity reference period and in the crediting period.
133.7Stratification
(1)The project proponent must produce a map which stratifies aproject area into paddocks for each year in the:
(a)the emissions intensity reference period; and
(b)the crediting period.
(2)Each paddock identified in a map produced for the purposes of subsection (1) must be issued a unique identifier.If a paddock’s perimeter is the same between two maps produced for the purposes of subsection (1), the unique identifier issued to the paddock in accordance with subsection (2) must be the same in both maps.
(3)For the avoidance of doubt, a map produced for the purposes of subsection(1) does not need to align with calendar or financial years.
NoteFor the purposes of administrative simplicity, project proponents are encouraged to align the 12 month period covered by their annual map with the relevant cotton growing season rather than a calendar of financial year.
(4)The map produced for the purposes of subsection (1) may only include a paddock as part of the cotton area if:
(a)cotton is planted in the paddock;
(b)the paddock is irrigated; and
(c)the residue remaining in the paddock after the harvest of cotton is not burnt.
143.8Mapping formatand precision
(1)A map produced for the purposes of subsection 13(1) must be in a digital Geographic Information System format.
(2)The boundary of a paddock identified in accordance with section 13 must have a horizontal accuracy either:
(a)of 10 metres at 95 per cent threshold; or
(b)as specified by the Intergovenmental Committee on Surveying and Mapping Australian Map and Horizontal Accuracy Standard 2009.
NoteWhile any Geosgraphic Information System format which meets the requirements in subsection (2) is acceptable for the purposes of subsection (1), project proponents are encouraged to use the Carbon Farming Initiative Mapping Tool, available on the Department’s website. The Standard mentioned in paragraph (b) is available at:
Part 4Net abatement amount
Division 4.1The net abatement amount
154.1The net abatement amount
(1)For paragraph 106(1)(c) of the Act, this Part specifies the method for working out the carbon dioxide equivalent net abatement amount for a reporting period for an irrigated cotton project that is an eligible offsets project.
(2)The greenhouse gas emissions avoided as a consequence of the project is the carbon dioxide equivalence of the difference between the baseline and the project emissions from the cotton area over the reporting period.
(3)If a calculation in this Part includes a factor or parameter that is defined or calculated by reference to another instrument or writing, the factor or parameter to be used for a reporting period is the factor or parameter referred to in, or calculated by reference to, the instrument or writing as in force at the end of the reporting period.
NoteSubsection (3) includes the the global warming potentialsfor methane and nitrous oxide prescribed by the National Greenhouse and Energy Reporting (Measurement) Determination 2008.
(4)For an eligible offsets project to which this Determination applies, the carbon dioxide equivalent net abatement amount is the carbon dioxide equivalence of the amount of greenhouse gas emissions avoided as a consequence of the project in relation to a project area in a reporting period, calculated:
(a)using the Irrigated Cotton Calculator in accordance with this Part to determine the carbon dioxide equivalent net amount of greenhouse gas emissions avoided as a consequence of the project for the cotton area, for each year in the the reporting period; and
(b)summing the amounts under paragraph (a) for all years and project areas which are part of the reporting period.
(5)If the net abatement amount of a year is less than zero, for the purposes of subsection 4(b) it is taken to be zero.
NoteYears in which the net abatement amount is less than zero, that is, years in which project emissions are greater than baseline emissions, must be reported, but are not deducted from the net abatement amount. This treatment of negative abatement amounts is possible from a greenhouse gas accounting perspective because of the variance discount applied to the baseline which reduces positive abatement amounts (see Subdivision 4.2.2).
164.2Overview of gases accounted for in abatement calculations
(1)The following table provides an overview of the greenhouse gases and emissions sources that are relevant to working out the carbon dioxide equivalent net abatement amount for an irrigated cotton project.
Greenhouse gases and emissions sourcesItem / Relevant emissions calculation / Emissions source / Greenhouse gas
1 / Baseline emissions
Project emissions / Synthetic fertiliser application other than urea / Nitrous oxide (N2O)
3 / Baseline emissions
Project emissions / Synthetic fertiliser application (urea) / Carbon dioxide (CO2)
4 / Baseline emissions
Project emissions / Green manure residue / Nitrous oxide (N2O)
(2)For a year, green manure residue is only relevant to working out the carbon dioxide equivalent net abatement amount for an irrigated cotton project if:
(a)the green manure crop is planted on an area of land that is a part of the cotton area in the year; and
(b)there are no other crops planted between the green manure crop and the a cotton planting in the year.
(3)For a year, synthetic fertiliser is only relevant to working out the carbon dioxide equivalent net abatement amount if the synthetic fertiliser is applied:
(a)after the harvest of the crop previous to the cotton planting; and
NoteThe crop previous to the cotton planting could be a cotton crop, or a crop grown in rotation with cotton.
(b)before the harvest of the cotton area in the year.
Division 4.2Method for calculating net abatement amount
174.3Calculation of the carbon dioxide equivalent net abatement amount
(1)The carbon dioxide equivalent net abatement amount forthecotton area must be calculated using the Irrigated Cotton Calculator by entering the inputs required by the Irrigated Cotton Calculator.
(2)Inputs required by the Irrigated Cotton Calculator for the purposes of subsection (1) include inputs outlined in section 18 and:
(a)the identification of a region; and
(b)the application by the Irrigated Cotton Calculator of the results of scientific research pertaining to the effect of management practices on greenhouse gas emissions in the cotton industry.
184.4Inputs required by the Irrigated Cotton Calculator
(1)The following table provides an overview of the inputs required to work out the carbon dioxide equivalent net abatement amount for an irrigated cotton project.
Inputs required by the Irrigated Cotton CalculatorItem / Relevant period / Input / Unit
1 / Emissions intensitryreference period; and crediting period / Mass of synthetic fertiliser applied for each type of synthetic fertiliser applied / Tonnes
2 / Emissions intensitryreference period; and crediting period / Nitrogen concentration for each type of synthetic fertiliser applied / Per cent
3 / Emissions intensitryreference period; and crediting period / Cotton area / Hectares
4 / Emissions intensitry reference period; and crediting period / Green manure area / Hectares
5 / Emissions intensitryreference period; and crediting period / Lint yield / Tonnes
Subdivision 4.2.2Baseline emissions
194.5The baseline
(1)The baseline for the project must be calculated using the Irrigated Cotton Calculator, for each year in a reporting period, for thecotton areaby entering each input required by the Irrigated Cotton Calculator into the Irrigated Cotton Calculator.
(2)For the purposes of subsection (1), the baseline will be the emissions estimated to occur had the new management actions not been implemented in the relevant year in the reporting period, minus the variance discount, determined in accordance with section 20.