Member for Eden-Monaro Mike Kelly, said the CFI was an important Labor government initiative which would encourage farmers to find new and innovative ways to reduce emissions, like nitrous oxide and methane, through changes to agricultural and land management practices.

He said it was great news for local farmers and community groups on the Monaro.

“The CFI will allow farmers and landholders to be involved in the carbon market and potentially open an additional income stream, and will unlock new economic opportunities for farmers and other landholders who take action to reduce greenhouse gases in our region,” he said.

“The initiative also includes communication activities for local producers to learn about carbon offset markets - some of this work will be done through Landcare groups and local networks.”

The CFI would allow for the use of carbon credits, which could be purchased and used by farmers or landholders to cancel out or ‘offset’ the emissions they generate through innovation. Landholders undertaking projects to credit offsets would need to use an approved methodology in order to participate in the carbon offset scheme.

Some examples could include:

* Reducing or avoiding emissions, for example, through capture and destruction of methane emissions from landfill or livestock manure; or

* Removing carbon from the atmosphere and storing it in soil or trees, for example, by growing a forest or reducing tillage on a farm in a way that increases soil carbon.

Dr Kelly said the potential opportunities that would arise from the CFI would be very beneficial to local farmers.

“The CFI will allow farmers to diversify their income activities and encourages productivity gains through innovation” Dr Kelly said.

“To support this scheme, the government will be investing $1.7 billion over seven years to help rural communities benefit from carbon farming and support the restoration and protection of biodiverse landscapes.”