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Carbon research, development and extension for agricultural producers
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Commitments to reduce emissions are likely to affect even small producers
The Australian Government recently submitted its updated greenhouse gas emissions reduction targets, pledging to reduce our national emissions by 62-70% below 2005 levels by 2035. To achieve this, the Federal Government has put in place a couple of legislative measures that require large entities to report and reduce their emissions. This will likely have flow-on effects, even for small agricultural producers.
Legislated drivers to reduce emissions:
The Safeguard Mechanism has been in force since 2016. It requires major greenhouse gas emitters to gradually reduce their emissions via their own reductions or by buying offsets, or Australian Carbon Credit Units, which may be generated through a carbon project on farmland.
On 1 January 2025, the mandatory climate-related financial disclosures policy came into effect in Australia. It requires large companies to prepare a Sustainability Report, disclosing how they address both exposure to and mitigation of climate change. From January 2026, this will include their so-called Scope 3 emissions, or in other words the emissions generated within their value chains, which could include primary producers.
Market access and voluntary target drivers:
In addition to legislated requirements, many Australian and international companies who buy agricultural products or finance agricultural enterprises have set themselves voluntary emissions reduction targets. So, as well as government, these businesses are also interested in producers’ efforts to reduce their emissions.
In addition, many export markets have access requirements based on their emissions targets. Most Australian agricultural exports are destined for countries with trade-enshrined net zero commitments.
Agricultural production is a significant source of greenhouse gas emissions and - as we all appreciate – is itself vulnerable to climate change. So, agricultural producers are increasingly going to be asked about the emissions intensity of their produce. Fortunately, reducing emissions intensity usually also improves productivity and efficiency.
Category : Industry NewsCreated On : 24 October 2025
