Project revenue depends on the number of ACCUs generated and the price for which they can be exchanged. The number of ACCUs generated is project specific, while the price of ACCUs is uncertain. This section summarises potential revenues from a variety of project types.
The period over which ACCU credits can be earned under the ERF is seven years for emissions avoidance projects and 25 years for sequestration projects. The contracting period under the ERF is five years, although there is a possibility that this will change. In the examples in this and subsequent chapters, we use a 20-year period for revenue calculations.
This is an illustrative representation only and not a literal forecast of revenues that could be earned. We encourage you to repeat the calculations using different periods, as a learning exercise.
A number of spreadsheet templates are available to allow you to do this (see the discussion in 8.2).
Explore the full Workshop Manual: The business case for carbon farming: improving your farm’s sustainability (January 2021)
Read the report
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1. Introduction: background to the business case
This chapter lays out the basic background and groundwork of the manual
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1.2 Being clear about the reasons for participating
Introduction: background to the business case
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1.4 Working through the business case for carbon farming
Introduction: background to the business case
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1.5 Factors determining project economics
Introduction: background to the business case
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1.8 Important features of the business case
Introduction: background to the business case
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2. How carbon is farmed under the ERF
This chapter considers in detail the activities that constitute carbon farming
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2.5 Carbon farming under the Emissions Reduction Fund
How carbon is farmed under the ERF
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3. The policy context and the price of ACCUs
This chapter takes a broad look at the policy context for carbon farming
