How to ensure your carbon credits are worth the investment

How to ensure your carbon credits are worth the investment

With recent questions over the legitimacy of the Australian carbon offset scheme, it’s never been more important that carbon emissions are offset with legitimate credits and are free of greenwashing.

Unfortunately, few offerings in the market consider the natural environmental variables faced by the landowners generating the credits, and have the data transparency and accuracy required to inspire confidence that the investment is actually achieving its drawdown goal.

But the recently-released Eco-Credit by ORICoop is addressing many of these key issues in the current carbon offset market.

The farmer-owned credits are backed by extensive data collection and have been developed in accordance with the conditions, biodiversity and operations of each farm they’re provided by. Their transparency of data and the ability to directly purchase Eco-Credits from each farm means investors avoid the greenwashing associated with other carbon credit offerings.

ORICoop EO Carolyn Suggate said ‘All farms are assessed as to their suitability for the program, based on their existing farming practices, the area of the farm and the intentions of future management.’

“We don’t want producers to be at risk from any carbon credit program, to overstate their carbon drawdown, or to be exposed by a natural disaster or severe weather event should the carbon levels in their soil or biodiversity decrease,” Ms Suggate said.

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These limits are a key part of the design- providing investor security, and lessening the risk of overstating any values, especially following farming challenges or natural disasters that can negatively impact soil carbon improvement efforts such as the extensive flooding occurring throughout NSW and QLD recently.

“Through a collective of the credits, ORICoop’s specialist advisory committee oversees each of the credit applications and validation reports. This includes assessing the management practices, the land management zones, the footprint of the farm business plus the soil testing and results. For each project we determine suitable buffers that enable producers to bank a portion of their credits – the credits are validated annually, and depending on buffer limits, a portion is liquidated at the producer’s discretion,” Ms Suggate said.

Each Eco-Credit represents 1 tonne of CO2 drawdown, in addition the credits represent measures each local organic producer has undertaken to actively improve soil carbon, water efficiency and biodiversity within their properties and farming practices.

Michael Coleman, Managing Director of Box Forest Consulting, said the costly setup and operating design of the ACCU market may be resulting in poor outcomes for both producers and investors.

“If it turns out that ACCU projects are not delivering contracted reductions, despite high costs of participation, that’s the worst of both worlds. Hopefully the regulator will improve market integrity, and not just by adding more layers of consultant reports,” Mr Coleman said.

“A simpler, more transparent certification process, with low verification costs, can also offer greater integrity. Certification gets done and reported in a way all users understand and accept. Voluntary Carbon Markets (VCM) should be designed with that in mind, which is what ORICoop has set out to achieve.”

Iain Smale, of Pangolin & Associates, said the Eco Credit will be popular for investors by providing other options for carbon credits which also offer a local impact, which is especially important given per-capita carbon emissions in Australia are amongst some of the highest in the world.

“With the Eco-Credit, you’re having a bigger environmental impact than just a carbon credit,” he said.

The environmental impact of our producer operations is key for Australian-owned organic dairy processor & manufacturer Paris Creek Farms. Paris Creek Farms’ Marketing & Communications Manager Alex Donovan said they are committed to increasing the sustainability of their operations, actively working with their producers to achieve this with Eco-Credits initially playing a vital part.

“With bio-dynamic and organic practices, we’re already using one of the most sustainable and regenerative methods of farming in the world, but we are striving to be even more sustainable. Our ultimate goal is to have our farmers generating their own Eco-Credits,” Ms Donovan said.

Ms Suggate said there are many ways the agriculture sector is transitioning beyond net-zero, and that collaboration to improve trust, legitimacy and the urgency for improving how sustainably we produce food is vital, especially after considering the ‘business as usual’ impact on the environment and the urgency of our changing climate as seen recently by some of the worst floods in history.

“We need science to be well funded to enable technology to be more accessible and trusted across the industry. This includes the measurement capability, satellite data, plus legitimate footprint data for farms across all commodities,” Ms Suggate said.

“In the meantime, our organic farming ORICoop members are dedicated to measuring and validating their soil tests and farm footprint. As their credits are validated, these producers form part of the organic farming ecosystem that invests into best practice, research and sustainability programs through a legitimate farmer-led carbon credit based on international guidelines,” she said.

“That includes soil carbon and biodiversity, rewarding producers for sustainable land stewardship practices, while offering these credits to businesses looking to offset their carbon footprint with legitimate credits that are traceable back to each farm that has generated them.”

If your business is committed to achieving net-zero, offset your carbon emissions directly with credits you can trust – register here now.

Eco-Credits now available

Eco-Credits now available

The first fully Australian farmer-owned carbon credits, the Eco-Credit, have just been released – with tangible benefits to local farmers, business, communities and the environment.

The Eco-CreditTM scheme was created by the Organic and Regenerative Investment Cooperative (ORICoop), which aims to unite the food value chain and increase the uptake of organic and regenerative practices across Australia by increasing collaboration between farmers, businesses and consumers.

Eco-CreditTM buyers can now offset their existing carbon footprint, with full transparency as to where and how each credit is generated and determine other environmental co-benefits, by visiting https://www.organicinvestmentcooperative.com.au/services/Eco-Credit

Each Eco-CreditTM represents 1 tonne of CO2 positive emission drawdown, validated annually through rigorous testing, and are provided by ORICoop’s organic, net-positive regenerative farmers who run diverse farm businesses including dairy, cropping, livestock and mixed farming systems.

ORICoop EO Carolyn Suggate said that the Eco-CreditTM  concept was developed by ORICoop in conjunction with farmers looking to advance farm system approaches to provide safe, secure and affordable food with a regenerative ecological impact.

‘The scheme links those farmers to external buyers, be that corporate, small business or Mum’s and Dad’s keen to play a role and do their bit in fostering sustainable practices and reducing their own carbon footprints’ Ms Suggate said. To activate carbon drawdown urgently we need all contributors to be empowered to participate.

Victorian farmer Stephen Whitsed is the first ORICoop producer to offer Eco-CreditsTM to the market, and aside from the environmental benefits can see immediate environmental, CSR, and other economic benefits for businesses, producers and local communities.

”It’s an environmentally-friendly credit ​​that rewards organic producers and builds stronger connections between businesses and our on-farm practices that enable carbon benefits to be exchanged. As organic producers we are looking forward to demonstrating our on-farm practices that are increasing carbon drawdown and legitimise better environmental stewardship for the long term,” Mr Whitsed said.

Mr Whitsed said the Eco-Credit process is straightforward for farmers and ‘definitely beneficial’ to his farm and environmental management, and hopes investors will benefit from their transition beyond net-zero and the planetary impact.

“The validation process is through soil testing every year, including GPS points to ensure we soil test in the same place every year. Following that we send the soil samples to a laboratory to be tested, and wait for the results,” he said.

Farmer and organic industry advocate and researcher, Greg Paynter, sees a range of benefits the Eco-Credit scheme will provide, including environmental and ecosystem functioning, farm viability and improved social and mental health outcomes for farmers where stress is alleviated by the additional revenue stream provided by the scheme as a reward for best practice land stewardship.

“It’s a dividend that doesn’t come from production output, it comes from a different stream, the productive and regenerative capacity of the land,” Mr Paynter said.

“In Australia, we are striving for $100 billion worth of production from agriculture annually, but our understanding of the research that comes out of Canada, a very similar country to Australia, is they produce that amount, but 98% of it goes into the cost of production or services to provide that production, so the net profit or return on investment of effort is not very high,” he said.

“But if you value land stewardship and make it worth something, the production of food or fibre you get from the land is a reward and you do it in a manner of organic and regenerative production systems, that conserves the basis of the production system into the future. There is talk of only 60 harvests left in some places in Europe and the soil will be destroyed, so we need to act with urgency – and what the Eco-CreditTM does is offer an incentive to do something whilst still maintaining a living.”

Fourth generation Western Australian farmer and agroecological farm system advocate Mr David McFall said the Eco-CreditTM project links businesses who want to do better, and rewards practices to adjust to the changing climate that are not seen to be outwardly ‘commercial’, especially natural capital management like tree planting, increasing biodiversity and soil carbon and water works for habitat and land cooling.

“This is one mechanism that is farmer-derived and farmer-led. It ticks the boxes in terms of accessibility and linking people who have capacity with people who want to do things in the landscape,” Mr McFall said.

“It’s a journey we’re doing for very practical reasons, there’s farmers like Stephen Whitsed and myself who want to do better, but the ‘do better’ that’s asked of farmers is not necessarily an upfront conventional outcome. So this mechanism takes the risk out of the investment and becomes a shared journey as it connects people who want to see good done, but are perhaps urban-based or don’t have access to land, develop partnerships with a farmer,” he said.

“Each farmer is motivated at different levels, and the intelligence behind this system is that it’s not just carbon, it’s approaching it from an ecosystems services platform – that’s embracing revegetation, and in time will embrace cleaner water and air, and keeps toxic substances out of our food and agricultural production systems.”

Iain Smale, of Pangolin Associates, feels the release of the Eco-CreditTM will be popular for businesses, providing alternative options for carbon credits. He also expects they will raise awareness of the growing organic and regenerative agricultural industry in Australia working to capture carbon and mitigate the key drivers of climate change, which is especially important given per-capita carbon emissions in Australia are amongst some of the highest in the world.

“With the Eco-CreditTM, you’re having a bigger environmental impact than just a carbon credit,” Mr Smale said.

“Australia as a nation in the developed world has close to the highest per capita emissions. Per person it’s around 23-24 tonnes, NZ is around half that, and a lot of Europe is less than half that. It’s because Australia has two main drivers – we’re heavily reliant on fossil fuel, coal and gas generation and it’s the tyranny of distance – people have a lot of transport miles, including for heavy transport, trains and trucks, and we don’t have any high speed rail, so much of our economy is based on fossil fuel,” he said,

**. To buy Eco-CreditsTM, register HERE

** To follow the Eco-Credit journey of this and other farms click HERE

Eco-Credits is a nationwide scheme open to organic and biodynamic producers.   Other ORICoop farmers will shortly be stating their pledges and looking to develop partnerships with businesses and processors associated with their farm.

It’s that ‘Resilience’ time of the year

It’s that ‘Resilience’ time of the year

As the end of this financial year runs to screaming halt – it’s time for us to take stock, and assess the type of world we live in – and how each one of us could be part of the solution to a better world!

Given the incredible outcomes of the Organic Farmers Bushfire Appeal, we are excited about the next steps from here for ORICoop.  And how we as a member owned Co-operative can step up to help when it’s needed.  And stick to our key mission of increasing and enabling more organic farmers to be better stewards of more land over time.  And meet the specific needs of our farming community, member to member.   While connecting our friends, eaters, farmers and investors more closely together, for a better and more aligned food and farming system. 

You can become an ORICoop member HERE

Each year we love putting together our ‘hot’ list of leading organisations.  If you are looking to make a real difference as a tax deductible donation some suggestions are here:-

So what else can I practically do?  Here is a short action list!


We are launching the FIRST edition of BioLogical shortly.  Here you will get the first glimpse of this collaborative journal, that covers organic farming, local stories, bushfire recovery, ethical investment and our community.

And make sure at this complex time, that you connect more closely with your local farmers and your food system.  One bite, one meal, one good investment at a time!

You can keep up with ORICoop via Instagram.  Or subscribe to our blog for our regular updates.



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READ MORE HERE

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READ MORE HERE

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