Australia’s green energy bank is helping farmers win carbon credits. 

The Clean Energy Finance Corporation (CEFC) has partnered with Rabobank Australia to initiate a $200 million funding program aimed at supporting farmers in their efforts to adopt sustainable practices through environmental planting projects. 

The initiative is intended to reduce upfront costs for farmers undertaking Environmental Planting projects under the Australian Carbon Credit Units (ACCU) Scheme.

It should enable farmers to generate carbon credits while achieving environmental and economic benefits.

The CEFC investment will facilitate discounted loans for farmers, who will receive a one per cent interest rate reduction on Environmental Plantings Carbon Farming Loans, funded by the CEFC. Rabobank will further contribute an additional 0.15 per cent discount. 

The loans are designed to ease costs for feasibility assessments, planting expenditures and other efforts.

Environmental Planting projects involve cultivating mixed native vegetation on land cleared of forest cover for at least five years. 

These projects aim to sequester carbon dioxide, generating one ACCU for every tonne of carbon captured. Besides reducing emissions, the projects offer a range of benefits, such as enhanced biodiversity, improved soil quality, and increased water use efficiency.

The CEFC and Rabobank will also collaborate on a practical guide to aid farmers in navigating the ACCU Scheme, offering insights into key considerations and opportunities for Environmental Planting projects.  

The CEFC estimates that achieving net zero emissions by 2050 requires the removal of 4.6 gigatonnes of carbon.

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