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An Integrated Assessment of Land-use
Change in the Border Rivers-Gwydir
Catchment


     Jonathan Moss, Oscar Cacho, Stuart Mounter
Acknowledgement

   Primary Industry Adaptation Research
    Network (PIARN)




                                      2
Presentation outline
 Potential for GHG reduction from
  farmers
 Objectives of research
 Methodology
 Results
 Conclusions




                                     3
Australian farming sector
   Potential for GHG mitigation:
    ◦   Reduce emissions
    ◦   Increase soil carbon
    ◦   Bioenergy
    ◦   Second-generation biofuels
    ◦   Wood or carbon plantations
    ◦   Conservation forests



                                     4
Land-use change for climate
mitigation

 Considerable potential for
  biosequestration
 Realisation may greatly reduce the
  costs of mitigation (Garnaut 2008)
 Incentives required




                                       5
Objectives of research
 What is the potential supply of carbon
  mitigation services?
 What are the abatement and
  transaction costs?
 What economic incentives are
  necessary?
 How will different policy arrangements
  affect this supply?

                                      6
Methodology
   For the supply of land-use changes from
    landholders:


                           Abatement +
      Incentive
          s       >     transaction costs




                                              7
Abatement costs
 Calculated as opportunity cost
 Dependent on:
     Location
     Current land use
     Soil type
     Climatic variables




                                   8
Simulations
 Developed model of LUC in Border
  Rivers-Gwydir catchment
 Modelled current land uses and 4
  proposed land uses
 Calculated carbon sequestration using
  FullCAM model
 Abatement costs calculated from a
  variety of secondary sources

                                     9
Carbon sequestration (t C ha-1)




                                  10
Carbon sequestration
 Av. change from current land use                                Av. change from current land use
   to mixed spp. environmental                                        to Eucalyptus globulus
            plantings                                                       plantation
                           50                                                        20




                                                          Carbon biomass (tC ha-1)
Carbon biomass (tC ha-1)




                           40

                           30
                                                                                     10
                           20

                           10

                            0                                                         0
                                0   20          40   60                                   0   20          40    60
                                         Year                                                      Year




                                                                                                               11
Average additional carbon
sequestration (t C ha-1)




                            12
Abatement costs ($ tCO2e-1)

                                   Discount rate

Proposed land use       1%    3%        5%     7%    9%

Pinus radiata           55    48        44     43    41

Mixed env. planting     38    28        22     19    17

Eucalyptus globulus     89    88        87     87    85

Eucalyptus cladocalyx   187   -18      -149   -227   -271




                                                            13
Sequestration potential vs. opp.
cost




• Regions with the highest sequestration
  potential do not necessarily provide the
  lowest-cost strategy
                                             14
Carbon sequestration supply
 (in absence of transaction costs)




                                     15
Carbon sequestration supply
 (in absence of transaction costs)




                                     16
Supply with price caps
                             Discount rate

Price cap
                   1%      3%       5%        7%      9%
($k tCO2   e-1)

    10            358     296       227      155     505

    20            378     431       589      1,342   1,963

    30            503     692       979      1,808   2,409

    40            704     872      1,266     2,006   2,532

    50            800     1,088    1,369     2,077   2,610

 Unlimited        1,397   1,432    1,573     2,215   2,688

                                                             17
Conclusions
 Additional carbon can be sequestered
  from LUC
 Mixed species plantings and Pinus
  radiata plantations have the highest
  sequestration potential
 Targeting regions with the highest
  sequestration potential is not
  necessarily lowest-cost strategy
 Results are sensitive to discount rate
                                      18

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An integrated assessment of land use change in the Border Rivers-Gwydir catchment - Jonathan Moss

  • 1. An Integrated Assessment of Land-use Change in the Border Rivers-Gwydir Catchment Jonathan Moss, Oscar Cacho, Stuart Mounter
  • 2. Acknowledgement  Primary Industry Adaptation Research Network (PIARN) 2
  • 3. Presentation outline  Potential for GHG reduction from farmers  Objectives of research  Methodology  Results  Conclusions 3
  • 4. Australian farming sector  Potential for GHG mitigation: ◦ Reduce emissions ◦ Increase soil carbon ◦ Bioenergy ◦ Second-generation biofuels ◦ Wood or carbon plantations ◦ Conservation forests 4
  • 5. Land-use change for climate mitigation  Considerable potential for biosequestration  Realisation may greatly reduce the costs of mitigation (Garnaut 2008)  Incentives required 5
  • 6. Objectives of research  What is the potential supply of carbon mitigation services?  What are the abatement and transaction costs?  What economic incentives are necessary?  How will different policy arrangements affect this supply? 6
  • 7. Methodology  For the supply of land-use changes from landholders: Abatement + Incentive s > transaction costs 7
  • 8. Abatement costs  Calculated as opportunity cost  Dependent on:  Location  Current land use  Soil type  Climatic variables 8
  • 9. Simulations  Developed model of LUC in Border Rivers-Gwydir catchment  Modelled current land uses and 4 proposed land uses  Calculated carbon sequestration using FullCAM model  Abatement costs calculated from a variety of secondary sources 9
  • 11. Carbon sequestration Av. change from current land use Av. change from current land use to mixed spp. environmental to Eucalyptus globulus plantings plantation 50 20 Carbon biomass (tC ha-1) Carbon biomass (tC ha-1) 40 30 10 20 10 0 0 0 20 40 60 0 20 40 60 Year Year 11
  • 13. Abatement costs ($ tCO2e-1) Discount rate Proposed land use 1% 3% 5% 7% 9% Pinus radiata 55 48 44 43 41 Mixed env. planting 38 28 22 19 17 Eucalyptus globulus 89 88 87 87 85 Eucalyptus cladocalyx 187 -18 -149 -227 -271 13
  • 14. Sequestration potential vs. opp. cost • Regions with the highest sequestration potential do not necessarily provide the lowest-cost strategy 14
  • 15. Carbon sequestration supply (in absence of transaction costs) 15
  • 16. Carbon sequestration supply (in absence of transaction costs) 16
  • 17. Supply with price caps Discount rate Price cap 1% 3% 5% 7% 9% ($k tCO2 e-1) 10 358 296 227 155 505 20 378 431 589 1,342 1,963 30 503 692 979 1,808 2,409 40 704 872 1,266 2,006 2,532 50 800 1,088 1,369 2,077 2,610 Unlimited 1,397 1,432 1,573 2,215 2,688 17
  • 18. Conclusions  Additional carbon can be sequestered from LUC  Mixed species plantings and Pinus radiata plantations have the highest sequestration potential  Targeting regions with the highest sequestration potential is not necessarily lowest-cost strategy  Results are sensitive to discount rate 18

Notas do Editor

  1. So if this is where we really stand, we need to look at several ways of reducing/mitigating these emissions. In 2008, Ross Garnaut released a report that he had prepared for the Rudd government on climate change and its impact on Australia. One of the chapters in this review was on agriculture. Several different ways in which agricultural and rural areas may be used to mitigate or reduce greenhouse gases include, reduced livestock emissions. Methane emissions from livestock accounts for about 67% of the GHG emissions from agriculture in Australia. Therefore there is scope to change to low methane emitting livestock or for technological advances to develop low methane emitting stock.
  2. It was highlighted in Garnaut’s 2008 report that there is considerable potential for biosequestration in rural Australia.
  3. What is the potential supply of carbon mitigation services from land-use change of Australian farmers?What are the abatement and transaction costs for the supply of these services, and how they vary spatially?What economic incentives are necessary to realise this supply?
  4. A farmer j will participate in a carbon sequestration or abatement project is the incentives they receive are greater than the sum of the abatement costs and the transaction costs.
  5. Carbon sequestration potential varies significantly based on geographical location