10 October 2023. By AgForce CEO Michael Guerin.
Crucial discussions on climate continued this week, following AgForce’s presence at the Rocky drought forum.
It’s vital AgForce has a seat at the table, so the interests of primary producers are part of these negotiations with Ministers and interest groups.
It amazed me that amid these vital talks, the carbon distraction continues to lurk in the background.
Landholders are constantly approached by carbon aggregators. These are normally salespeople from commercial organisations, seeking to build a business by brokering deals with primary producers.
In essence, you may have carbon assets on your property that you can monetise. The broker takes a ‘clip of the ticket’ and the rest of the return comes back to you – but you have sold your carbon asset into a market.
However, the conversation should not be just about carbon. It should be broader than that - to include Natural Capital – your natural resources such as geology, soils, air, water and all living organisms. Carbon is only a small subset of your Natural Capital assets on property.
Do you know the value of your Natural Capital assets? Do you know the implication of that value by selling your carbon through an aggregator?
Or to put it another way – would you play a hand of cards without first knowing the entire contents of that hand?
Its madness in my opinion to contemplate selling part of an asset (your Natural Capital) without knowing the value of holding it for a future date.
What’s even more concerning – is that others in the supply chain may seek to trade or gain value from your natural capital assets without your knowledge or permission.
Far preferable is to start by knowing the full value of your Natural Capital assets in a verifiable way – outcomes increasingly demanded of all landholders for what are called ESG (Environmental, Social and Governance) measures. And that is what AgForce’s AgCarE.org.au has been designed to do – empowering you with knowledge before embarking on these complex negotiations.
Australian landholders have ownership of an asset critical to the future of this planet – and let’s not forget - they are also the custodians of the food security so critical to society’s stability.
Let’s stop talking carbon. Let’s start talking Natural Capital. Let’s understand the value and potential of that on property, and let’s go about leveraging that for business, social, environmental and community benefit. Then we all win.