A METHOD OF CARBON FARMING

TECHNICAL FIELD The present invention concerns a method for the sequestration of carbon. In particular, the present invention concerns a method of sequestering carbon in soil and recording and other use of the outcomes of such carbon sequestration in soil.

BACKGROUND

The reference to any prior art in the specification is not, and should not be taken as an acknowledgement of any form or suggestion that the prior art forms part of the common general knowledge. Carbon sequestration is the capturing and long-term storage of carbon dioxide or other forms of carbon to either mitigate or defer global warming. It has been proposed as a way to slow atmospheric and marine accumulation of greenhouse gases, which are released by burning fossil fuels. There are many ways to sequester carbon. As soil can act as an effective carbon sink, one such way to sequester carbon is through the modification of agricultural or land management practices. This is hereafter referred to as carbon farming.

Carbon farming seeks to reduce emissions in production processes, while increasing productivity and the sequestration of carbon. In addition to the sequestration of carbon, the benefits of carbon farming include: reduced erosion and soil loss; improved soil structure; increased soil fertility; reduced soil salinity, healthier soils, vegetation and animals, increased biodiversity, buffering against drought, and greater water efficiency. In addition to sequestering carbon, carbon farming is also considered a mechanism by which one may derive or develop a form of carbon off set, which is defined as a reduction in carbon dioxide greenhouse gases made in order to compensate for or to offset an emission made elsewhere. Many governments are now implementing projects, such as carbon farming, offering financial incentives to encourage emission avoidance and sequestration offset projects. Such incentives are highly regulated and typically offer the incentives in the form of carbon credits that can be traded and used by individuals and companies to cancel out or off set their emissions voluntarily or to meet regulatory requirements.

The implemented projects are usually highly regulated in order to ensure potential purchasers of any carbon credits that the carbon credits are reputable involving a real, measurable and verifiable abatement of greenhouse gases. As such, most projects involve a high level of accountability through the project application process as well as reporting or auditing once the proj ect has been approved.

With respect to carbon farming, many methodologies have emerged that seek to meet this high level of accountability. The existing methodologies that have emerged to date rely upon one or more specific prescribed treatments or improvements to a particular piece of land to improve soil carbon reserves. As such, such methodologies are specific to one point in space and time and do not account for the intrinsic risks of climatic, geological and land-use variability associated with a single piece of land. Furthermore, existing methodologies do not offer participants any incentive to maintain land management practices adapted to increase a soil carbon reserve. Consequently, many participants who, for example, planted trees to sequester carbon, will, once the planted trees have reached a commercial size, harvest the trees thereby releasing any captured carbon.

Further, existing methodologies are prescriptive as to the particular land use method or treatment process which is undertaken in order to engender carbon sequestration. As such those methodologies do not allow, or account for the possibility of improvements in technology or other innovation which may arise during a project term. Since projects involving carbon sequestration typically have extended project terms, this necessarily commits a project participant to using mechanisms which may not at a given time in the future be best practice. Additionally, existing methodologies require the participation of a particular individual landholder and a commitment to a project by that landholder. As such, the assessed risks associated with such projects and with any carbon offset derived from such projects will necessarily always be high due to the risks associated with a single individual proponent. This typically forces purchasers of offsets to undertake extensive and often expensive due diligence as to the skills and character of the individual project proponent and typically results in the attachment of very high risk premium factors to transactions of this nature. These risk premiums may, in some cases be so high as to significantly dilute the value to the project proponent of undertaking the project itself.

Thus, there is a need for an alternative methodology. SUMMARY OF THE INVENTION

/ It is an object of an embodiment of the present invention to provide a method that minimizes a problem referred to above, or provides the public with a useful or commercial choice.

According to an aspect of the present invention, there is provided a method of carbon farming, said method comprising the steps of:

a) defining one or more project areas;

b) measuring one or more soil parameters from one or more parts of each project area;

c) implementing land management practices on each project area adapted to increase soil carbon sequestration;

d) remeasuring the one or more soil parameters from the one or more parts of each project area;

e) calculating a total net abatement of greenhouse gases and contributions to a reserve buffer, said reserve buffer adapted to counter balance one or more of variability, volatility and uncertainty in soil carbon sequestration associated with each project area,

wherein the contributions to the reserve buffer are managed such that the total net abatement of greenhouse gases is greater than a claimed net abatement of greenhouse gases. According to another aspect of the present invention, there is provided a method of carbon farming, said method comprising the steps of:

a) defining one or more project areas, each project area including one or more sample sectors;

b) measuring one or more soil parameters from the one or more sample sectors of each project area;

c) implementing land management practices on each project area adapted to increase soil carbon sequestration;

d) remeasuring the one or more soil parameters from the one or more sample sectors of each project area;

e) calculating a total net abatement of greenhouse gases and contributions to a reserve buffer, said reserve buffer adapted to counter balance one or more of variability, volatility, and uncertainty in soil carbon sequestration associated with each project area; and

f) claiming carbon credit units based on a claimed net abatement of greenhouse gases,

wherein said contributions to the reserve buffer are managed such that the total net abatement of greenhouse gases is greater than the claimed net abatement of greenhouse gases.

According to yet another aspect of the present invention, there is provided a method of carbon farming, said method comprising the steps of:

a) defining one or more project areas;

b) measuring one or more soil parameters from one or more parts of each project area;

c) implementing at least two land management practices on each project area adapted to increase soil carbon sequestration;

d) remeasuring the one or more soil parameters from the one or more parts of each project area; ¹

e) calculating a total net abatement of greenhouse gases based upon combined net changes in the soil parameters from the one or more parts of the project areas and determining a contribution to a reserve buffer; f) claiming carbon credit units based upon a claimed net abatement of greenhouse gases,

wherein said reserve buffer is adapted to counter balance one or more of variability, volatility and uncertainty in soil carbon sequestration associated with each project area, and

wherein the contribution to the reserve buffer is managed such that total net abatement of greenhouse gases is greater than the claimed net abatement of greenhouse gases.

According to a further aspect of the present invention, there is provided a method of carbon farming, said method comprising the steps of:

a) defining one or more project areas, each project area including one or more sample sectors;

b) measuring one or more soil parameters from the one or more sample sectors of each project area;

c) implementing at least two land management practices on each project area adapted to increase soil carbon sequestration;

d) remeasuring the one or more soil parameters from the one or more sample sectors of each project area;

e) calculating combined net abatement of greenhouse gases based upon combined net changes in the one or more soil parameters from the one or more sample sectors of the one or more project areas and claiming carbon credit units based upon a claimed net abatement of greenhouse gases, wherein the combined net abatement of greenhouse gases is greater than the claimed net abatement of greenhouse gases;

f) contributing to a reserve buffer, contributions amounting to the difference between the combined net abatement of greenhouse gases and the claimed net abatement of greenhouse gases; and

g) managing said reserve buffer to counter balance one or more of variability, volatility or uncertainty in soil sequestration associated with each project area.

Preferably, two or more project areas may be defined and the reserve buffer includes contributions from the two or more project areas. Preferably, said reserve buffer may be managed to counter balance an aggregate of the one or more of variability, volatility or uncertainty in soil sequestration associated with the one or more project areas.

Preferably, the method of the above aspects of the present invention may be undertaken over a reporting period of 5 years.

The method of the above aspects of the present invention may include a final step of repeating steps (c) onwards. Preferably, steps (c) onwards are repeated periodically over a five year period. More preferably, step (c) is implemented for the majority of the five year period.

In an embodiment of the present invention, a methodology is provided that provides a mechanism by which climatic, geological and land use impacts may be effectively balanced between projects by the inclusion of lands which are geographically separated. The methodology also provides a platform for the inclusion of a wide range of possible and undefined land management practices hence encouraging a market for innovative solutions and accounting for individual participant preference for one land practice over another. Finally, the methodology according to an embodiment of the present invention also provides means to manage risks associated with a particular project or project component or a particular treatment in a particular location by virtue of the introduction and management of a project buffer, which aggregates the outcomes from all included projects and thereby reduces the individual risks associated with persistence of behaviours and maintenance of carbon reserves on a given project site over time thereby addressing the issue of permanence.

The term 'reserve buffer' as used herein refers to a pooled or shared abatement amount of greenhouse gases withheld from the claimed net abatement amount of greenhouse gases used as the basis for the issuance of carbon credit units. All participants may contribute to the reserve buffer. All contributions may be recorded. The reserve buffer may be partially redistributed to participants after a designated period of time based upon the aggregate performance of all project areas over time. Redistributions may be made in proportion to the initial contributions to the reserve buffer made by participants. In a preferred embodiment of the present invention where method is being implemented on more than one project area, a project manager may be appointed to manage the implementation of the method. Project manager may maintain a registry of all project areas to be managed as a pool. Preferably, any maintained registry will be in an electronic form.

Typically, all data collected through the implementation of the method of the present invention may be maintained for auditing purposes. Preferably, all data may be maintained in an electronic form and be accessible for external scrutiny, thereby addressing the issue of transparency.

Preferably, prior to commencing the method of the present invention on any project area, participants may be required to show capability to undertake the steps of the method. This may be achieved by certification from a training course giving basic background implementation information or some equivalent qualification or demonstrated experience. Preferably, participants may sign an agreement prior to commencing the method of the present invention agreeing to become part of an aggregated group and permanently registering all data collected.

In a preferred embodiment, the method of the present invention may require the establishment of a project baseline evidencing land management practices applied to the one or more parts or sample sectors of each project area for at least 24 months prior to the commencement of the method of the present invention on the project area. The project baseline may require the following information for each part or sample sector:

- crop/grazing density and rotations;

- number of tills per year;

- brand/type of any chemical fertiliser used arid application rates by weight per hectare per year;

- nitrogen levels as percent of weight for each brand/type of chemical fertiliser used, based upon manufacturer's published data;

- brand/type of any biological input/inoculant used and application rates by weight per hectare per year; and - nitrogen levels as percent of weight for each brand/type of biological input/inoculant used based upon manufacturer's published data.

Typically, the method may require participants to document any pertinent land management/farming practices in use, prior to the commencement of the project of the present invention, that may affect soil carbon levels.

In an embodiment of the present invention, participants, prior to commencing of the method of the present invention, may be required to prepare a plan defining which land management practices will be implemented. The plan may include information regarding any treatments that may be applied to the one or more sample sectors or parts of each project area. The information may include brand/product names, application rates, and/or any other processes to be applied. Step (a)

The method of an embodiment of the present invention may be implemented on one or more project areas. Project areas may be of any suitable size, shape and land type. Project areas may be located adjacent to one another. Alternatively, project areas may be geographically separated from one another. Preferably, the one or more project areas are geographically separated.

Each project area may be defined by a geographical boundary. Each geographical boundary may be made up of one or more polygons defining discrete areas of land. Furthermore, the project area may be further subdivided into one or more sample sectors or parts, each defined by a single polygon. The waypoints for the polygon or polygons defining a project area and defining each sample sector or part within a project area may be recorded electronically. When defining a project area and the one or more sample sectors or parts of the project area, consideration should be given to: lithology; landform pattern and element; current and expected vegetation cover; slope; drainage; relative elevation; climate; soil type and structure; land use; and land management practices. Typically, a project area may be subdivided into one or more sample sectors or parts such that each sample sector or part is defined in such a manner that it can be reasonably expected to have consistent potential for rate of change in soil carbon levels across its area, subject to typical localised variation. Preferably, a project area is further subdivided into one or more sample sectors or parts based upon climate zone, soil type and land use.

Once defined, each sample sectors or part may be assigned a category based upon its combination of climate zone, soil type and land use. For example, climate may be categorised as wet tropics, dry tropics, or slopes/high lands; soil type may be categorised as sandy/alluvial soils, clay/clay loam soils, or volcanic soils; and land use may be categorised as grazing/savannah, broad acre/intensive agricultural, or forestry/revegetation. It is envisaged that any category or combination of categories may be used to define a sample sectors or part based upon the combination of climate zone, soil type and land use. In no way should the present invention be limited to the categories and combination of categories given above.

Various techniques may be used to support the definition of a sample sector or part within a project area including: physical site inspection, paddock/farm histories, hyperspectral imaging, soil maps, and aerial photography. Steps (b) and (d)

One or more soil parameters may be measured by collecting soil samples for testing from each sample sector or part. The samples may be collected at any suitable location within each sample sector or part. Preferably, each location where a sample is collected for soil testing may be recorded with a unique identifier, the number of samples collected, and the location waypoints for the polygon or polygons defining the project area and defining the sample sector or part within the project area.

Preferably, soil may be tested at more than one location and at random locations within each sample sector or part. More preferably, soil may be tested at discrete or geographically separated locations within each sample sectors or part.

Samples may be collected and the soil tested from each sample sector or part any suitable number of times and at any suitable number of locations. For instance, a 20 ha (200,000 m ² ) project area may include 4 sample sectors or parts with 2 samples collected from each sample sector or part for soil testing. A 5000 ha (50,000,000 m ² ) project area may, for instance, include 15 sample sectors or parts with 6 samples collected from each sample sector or part for soil testing.

Typically, suitable samples are collected from each sample sector or part for soil testing to determine the total mass of carbon present to a depth of 30 cm contained within the soil from each sample sector or part. Preferably, the samples are collected in accordance with Australian standard procedure compliant with ISO standards [ISO 10381 -2] or a similarly recognised standard for such activity.

Collected soil samples may be sent to an accredited laboratory for analysis and determination of the one or more soil parameters. The one or more soil parameters may include one or more of the following: total carbon (TC); total organic carbon (TOC); soil type/structure; total plant available phosphorus; and total moisture. Preferably, the one or more soil parameters may at least include total available phosphorus and total moisture as these parameters are _/ good by-proxy indicators of photosynthetic activity in soils and on soils. Upon determination of the one or more soil parameters for each collected soil sample, the parameters may be collated from all sample sectors or parts within a project area and adjusted to ensure statistical certainty of aggregate parameters assigned to each project area. Step (d) of the present invention, remeasuring the one or more soil parameters from the one or more sample sectors or parts of each project may typically be taken in the same manner as in step (b).

Total organic carbon analysis may be undertaken using either a dry combustion method or mid-infrared (MIR) spectroscopy. It is envisaged, however, that other technologies or techniques for the analysis of total organic carbon may be used instead of the dry combustion method or MIR spectroscopy as they become available and are recognized. Preferably, a method for the analysis of total plant available phosphorus which is suited to or applicable in all project areas may be used such that sample analysis values obtained from all project areas may be compared. Steps (b) and (d) the present invention may further include permanent storage and publication of the determined values obtained for one or more soil parameters. The permanently stored and published data for one or more soil parameters may be accessible by nominated external auditors/verifiers. Step (c)

Following the initial measurement of the one or more soil parameters from one or more parts of each project area, one or more land management practices adapted to increase soil carbon sequestration may be implemented on each project area. Typically, the land management practices are practices that result in an increase in photosynthetic activity. Photosynthesis being considered the prime source of improvement in soil carbon reserves by the sequestering of carbon dioxide from the atmosphere. The sequestered carbon may be transferred to the soil via plant roots or by virtue of the increase in biomass of other organisms responsible for the performance of photosynthesis and the subsequent transfer of carbon structures on and in the soil by either plants or such other organisms.

In a preferred embodiment of the present invention, a participant may select one or a combination of land management practices shown to have a capacity to increase photosynthetic activity. Preferably, such land management practices had been assessed by an independent review. It is an advantage of the method of the present invention in that participants are not limited to a prescribed land management practice but instead may use one or more land management practices specifically suited to their particular project area. It is a further advantage to the present invention that the quantum of improvement in soil carbon levels expected from or attributed to the use of any particular land management practice is not prescribed, thus allowing for innovation in land management practice and encouraging the choice of practices which may naturally best suit individual project localities or land manager preferences.

Preferably, the land management practices increase overall photosynthetic activity and, may also: - increase the proportion and duration of groundcover;

- minimise disturbance to soil structure;

- increase water retention to, and improve water balance in, at least the first 30 cm of the soil profile;

- promote the production and/or retention of below-ground biomass above that in the baseline scenario; and/or

- promote the development and/or maintenance of soil biota.

Typically, whilst implementing one or more other land management practices, minimal tillage practices and a reduction in the use of non-biological fertiliser may be applied to the one or more project areas. If a participant of the method of the present invention elects to use a biological fertiliser/inoculant in place of chemical fertiliser, the participant may have to establish that the total nitrogen applied over the project area by weight per year is lower than the total nitrogen applied in the baseline scenario.

In a preferred embodiment of the present invention, at least two land management practices adapted to increase soil carbon sequestration may be implemented at a project area. Preferably, the implemented at least two land management practices may be suited to the project area, i.e., suited to a project area based upon the dominant land use and land type and climatic or regional conditions specific to each project area and to the preference and prior skills of the land manager.

In a preferred embodiment of the present invention, at least one land management practice adapted to increase soil carbon sequestration which was not previously used on that project land may be adopted, thus addressing the issue of additionality.

In a preferred embodiment of the present invention, a combination of land management practices adapted to increase soil carbon sequestration which was not previously used on that project land or a combination of one land management practice not previously used in concert with one land management practice adapted to increase soil carbon sequestration which was previously used may be adopted, thus further addressing the issue of additionality. Preferably, suppliers of products and processes employed in land management practices which may be adopted by participants of the method of the present invention may provide evidence demonstrating how the elected one or more land management practices meet a key requirement of the methodology in that the land management practice promotes or additionally and positively affects photosynthesis and thereby increases the potential for soil carbon sequestration in at least part of the project area. Note that because the method of the present invention is based on measurement of outcomes, rather than projected models, quantitative predictions of efficacy in terms of the ability to improve photosynthesis by suppliers of products and processes or by an independent assessor are not required.

Step (e), 0) and (g) Following the remeasuring of the one or more soil parameters, the combined net abatement of greenhouse gases is calculated. The combined net abatement of greenhouse gases may be calculated in any suitable manner or form based upon the statistical difference between the one or more soil parameters at steps (b) and (d) of the method of the present invention. The calculation of the net abatement of greenhouse gases typically includes soil carbon pools within each project area to a depth of substantially 30 cm which pool values are calculated from measured values recorded in the top 15 cm of the soil profile. The net abatement of greenhouse gases typically also includes an assessment of the implemented land management practices that result in changes in soil carbon stocks as a result of soil carbon sequestration.

In calculating the net abatement of greenhouse gases, the TOC determined from steps (b) and (d) of the present invention may be averaged to calculate the mean TOC for each sample sector or part. The average TOC for each sample sector or part as a percentage by weight may be calculated by averaging all the TOC measurements to a depth of 15 cm taken from locations tested within the sample sector or part.

The standard deviation value for the average TOC measurement calculated for each sample sector or part is also calculated for each sample sector or part. Soil bulk density, necessary to convert percentage carbon in samples to carbon density, may be estimated from the organic carbon measurement using the combined pedotransfer functions (recommended in [Valzano et. al. (2005) 'The impact of tillage on changes in soil carbon density with special emphasis on Australian conditions' National Carbon Accounting System Technical Report no. 43, Commonwealth of Australia, Department of the Environment and Heritage, Australian Greenhouse Office]). The bulk density value may be calculated by determining the mean of the three separate pedotransfer functions, the three of which have been individually in the prior art been shown to represent a valid mechanism for the extrapolation of bulk density values.

Once the above calculations have been carried out for the TOC from the one or more soil parameters measured and remeasured in steps (b) and (d) of the present invention, the net carbon change is calculated based on the changing carbon density over the period between the initial measuring of step (b) and the remeasuring of step (d). Typically, this period may be 5 years.

The change in carbon density (in tC ha) for sample sector or part (S) for after step (d) may be calculated by determining the net change in carbon density for a sample sector or part from carbon density measurements determined at steps (b) and (d), including a stratum confidence interval of preferably 90% for change in carbon density for the sample sector or part.

Based upon the calculation of the change in carbon density for each sample sector or part, the net greenhouse gas abatement may then be calculated. The net greenhouse gas abatement for a project area may be calculated as the sum of all change in carbon density for all sample sectors or parts within a project area less any enteric emissions.

The enteric emissions may be calculated in any suitable manner or form based upon methane emissions from livestock maintained on the one or more of the project areas.

The net greenhouse gas abatement of the project areas may then be calculated as the sum of the net greenhouse gas abatement for all project areas. Following the calculation of the combined net abatement of greenhouse gases, contributions to a reserve buffer may be calculated. As with the combined net abatement of greenhouse gases, the contribution to the reserve buffer may be calculated based upon combined net changes in soil parameters from the one or more sample sectors or parts of the project areas.

Typically, however, the contribution to the reserve buffer from each project area represents the difference between the calculated net abatement of greenhouse gases for a project area and the claimed net abatement of greenhouse gases for a project area.

The claimed net abatement of greenhouse gases for a project area may be calculated as the product of the calculated net abatement of greenhouse gases and the reserve buffer number as a percentage. For the initial five year term, a reserve buffer of 50% may be used. The inventor has found that 50% may be an ideal starting reserve buffer as it provides a high degree of confidence among program participants at all levels by effectively providing an initial reserve equivalent to 100% of all abatement which may subsequently be used to create incentives for participation in the process such as carbon based units or other instruments which may be sold. .

The claimed net abatement of greenhouse gases may be used as the basis for the issuance of carbon credits according to the respective legislation of the host country or entity or according to any relevant procedure applied to the market in which such carbon credits

Λ

are to be sold.

The reserve buffer for a project area may be calculated as the product of the net abatement of greenhouse gases and the remainder of the reserve buffer number, as a percentage.

Depending on the length of time in which the method of the present invention is implemented, it is envisaged that the total of contributions to the reserve buffer will decrease proportionally with the duration that the method is implemented. For instance, a method that is implemented for only 5 years may have a reserve buffer contribution of 50% of the net abatement of greenhouse gases achieved, whereas a method that has been implemented for over 10 years may in its eleventh year, have some of its initial contributions to the reserve buffer returned or have contributions from subsequently recorded gains reduced such that its total reserve buffer contribution amounts to 10% of the net abatement of greenhouse gases achieved over the period.

It is preferred in this invention that any redistribution of contributions made from a reserve buffer are dependent upon the aggregated performance of all project areas over time and are made in proportion to the contribution to the reserve buffer made by project participants within the first 5 years of participation. As such, the reserve buffer may act simultaneously to encourage participants to continue with land management practices which ¹ may improve or maintain a soil carbon reserve and to enable the effective management of individual variability, volatility or timing risks associated with the maintenance of a soil carbon reserve aggregated from discrete project areas.

In an embodiment of the present invention, the TOC determined from steps (b) and (d) of the present invention may be averaged to calculate the mean TOC for each sample sector or part as follows:

Equation 1

Where:

TOC _s = Total Organic Carbon to 15cm for sample sector or part ('S') _> as % by weight TOC _Si - TOC measurement to depth of 15cm for sample sector or part ('S'), location ('i'), as % by weight

N = the number of locations soil was tested within the sample sector or part ('S').

The standard deviation ^s Joc _s f _{or me} TOC _Si values is also calculated for each sample sector or part.

Soil bulk density may be estimated from the organic carbon measurements based on the mean of three separate transfer functions as follows: CL.6G8 - 0.0872 x TOO + (1,660 - 0.318 x JTOC) + fl.72 - 0.294 X ^TOC)

BD = -

3

Equation 2

Where:

tonnes

= Bulk Density in m ³

TOC = Total Organic Carbon as % by weight

The Carbon Density (in tC/Ha) and standard deviation for each sample sector or part may then be determined from the TOC measurements as follows.

SOC _s = TOC _s x BD _S x Depth x DCF X 10,000

Equation 3 ^s soc _s = ^s roc _s * B.D ₅ x Depth x DCF x 10,000

Equation 4

Where:

S0C _s = Carbon density to 30cm for sample sector or part (S), in tC/Ha

T° ^c s = TOC measurement for sample sector or part (S), location (i), as % by weight

iE? >5 = Bulk Density for sample sector or part (S) based on TOC _s according to

tonnes

Equation 2, in m ³

Depth = 0.15 m

C ^F = Depth Correction Factor of 1.7 extrapolating carbon density from 15cm to

30cm depth [Valzano et al., 2005] (see above),

c

^SO J = Standard deviation of carbon density for sample sector or part (S), in tC/Ha

^T °Gs = Standard deviation of TOC measurement for sample sector or part (S), as % by weight.

The change in carbon density (in tC/ha) for sample sector or part (S) for after step (d) may be calculated as follows:

S0C _s = SOC _Sti - S0C _Sto - StratumConfidence interval

Equation 5 /

Where:

ASOC _s = change in carbon density for sample sector or part (S), in tC/Ha

= Carbon density for sample sector or part (S) remeasured at step (d), in tC Ha

SOCst* = Carbon density for sample sector or part (S) measured at step (b), in tC/Ha

StratumConfidence interval = 90% confidence interval for change in carbon density for the sample sector or part, in tC/Ha.

To calculate the confidence interval for the difference between ^^s _to and SOC _Stl ^ _me following formula may be used:

^ r. _f ^t \Ssoc Ssoc,, ²

StratumConfidencelnterval =— J — + —

2 N _l0 N„

Equation 6

Where:

StratumConfid nce interval = 90% confidence interval for difference between carbon density at tl ('step (d)') and tO ('step (b)')for a given sample sector or part, in tC Ha

^J socr^ = standard deviation of carbon density at tO, in tC/Ha

$soc _tl = standard deviation of carbon density at tl , in tC/Ha

Nta = number of sample sectors or parts at tO

*VM = number of sample sectors or parts at tl

tec

— = value of the t distribution with ^α= 0· ¹ and degrees of freedom:

The net greenhouse gas abatement for a project area may be calculated as follows and is the sum of all change in carbon density for all sample sectors or parts within a project area less any enteric emissions:

NGGA— ^p jj OCj x Area x C02e conversion factor)^ - E _entgric

Equation 8

Where: ^■

NGGA = Net Greenhouse Gas Abatement for a project area, in tC02e

ASOCi = change in carbon density for sample sector or part (i), in tC/Ha

Areoi = A _rea of sample sector or part (i), in Ha

COle conversion factor = C02 conversion factor of 3.67, to convert tC to tC02e

The enteric emissions may be calculated in any suitable manner or form based upon methane emissions from livestock maintained on the one or more of the project areas.

The net greenhouse gas abatement of the project areas may then be calculated as the sum of the net greenhouse gas abatement for all project areas:

n

Pooled _GGAv = ^ NGGA _pV

Equation 9 Where:

Pooled _GGAv = NGGA for all project areas, in tC02e

NGGA _{v i} r - Net Greenhouse Gas Abatement for a project area, in tC02e

Following the calculation of the combined net abatement of greenhouse gases, contributions to a reserve buffer may be calculated.

Typically, however, the contribution to the reserve buffer from each project area represents the difference between the calculated net abatement of greenhouse gases for a project area and the claimed net abatement of greenhouse gases for a project area. The claimed net abatement of greenhouse gases for a project area may be calculated as follows:

NGGA x PBN

NAN =

100

Equation 10 Where:

NAN = Claimed Net Abatement for a project area, in tC02e

NGGA = Calculated Net Abatement of Greenhouse Gases, in tC02e

PBN = Reserve Buffer Number of 50, as a percentage The claimed net abatement of greenhouse gases may be used as the basis for the issuance of carbon credits according to the respective legislation of the host country or entity or according to any relevant procedure applied to the market in which such carbon credits are to be sold. The reserve buffer for a project area may be calculated according to:

f P PBBNN\\

Buffer = NGGA x l -— )

100 >

Equation 11

Where:

Buffer - reserve buffer for the project, in tC02e

NGGA = Net Abatement of Greenhouse Gases, in tC02e

PBM = Reserve Buffer Number of 50, as a percentage

For the above calculation a reserve buffer of 50% of the net abatement of greenhouse gases is exemplified.

Any of the features described herein can be combined in any combination with any one or more of the other features described herein within the scope of the invention.

BEST MODES OF CARRYING OUT THE INVENTION

Example - a method of improving carbon sequestration in soil. This example describes a method to enhance and encourage carbon sequestration according to an embodiment of the present invention. The method according to an embodiment of the present invention comprising the steps of: a) defining one or more project areas, each project area including at least four sub areas (i.e., sample sectors or parts);

b) measuring one or more soil parameters from the at least four sub areas of each project area;

c) implementing at least two land management practices on each project area, said land management practices adapted to increase soil carbon sequestration;

d) remeasuring the one or more soil parameters from the at least four sub areas of each project area;

e) calculating a total net abatement of greenhouse gases based upon combined net changes in the one or more soil parameters from the at least four sub areas of the one or more project areas and claiming carbon credit unitsbased upon a claimed net abatement of greenhouse gases, wherein the combined net abatement of greenhouse gases is greater than the claimed net abatement of greenhouse gases;

f) contributing to a reserve buffer, contributions amounting to the difference between the combined net abatement of greenhouse gases and the claimed net abatement of greenhouse gases; and

g) managing said reserve buffer to counter balance an aggregate from the one or more project areas of one or more of variability, volatility or uncertainty in soil sequestration associated with each project area.

Prior to commencing the method of the present invention on any project area, participants will be required to show a capability to undertake the steps of the method. Preferably, participants will sign an agreement prior to commencing the method of the present invention agreeing to become part of an aggregated group permanently registering all data collected. All collected data will be maintained for auditing purposes. The data will be maintained in an electronic format and be accessible for external scrutiny. Where the method is to be implemented on more than one project area, a project manager will be appointed to oversee the implementation and management of the method on the more than one project area. The project manager will maintain a registry of all project areas to be overseen and managed. The project manager will manage the more than one project area collectively.

The method will be implemented for an initial reporting period of five years. Steps (c) onwards may then be repeated over additional reporting periods of five years. Step (a) - defining one or more project areas

The method will be implemented on one or more project areas. Project areas may be adjacent to one another or geographically separated. Each project area will have a defined geographic boundary. Each geographic boundary will be defined into one or more polygons defining discrete areas of land. Each project area will be further subdivided into at least four sub areas (i.e., sample sectors or parts), each defined by a single polygon. The waypoints for the polygons defining a project area and each sub area within the project area will be electronically marked by GPS markers with the coordinates being electronically recorded.

Project areas and the one or more sub areas for each project area will be defined giving consideration to: lithology; landform pattern and element; current and expected vegetation cover; slope; drainage; relative elevation; climate; soil type and structure; land use; and land management practices. Each sub area will preferably be defined to have a substantially consistent potential for rate of change in soil carbon levels, subject to typical localised variation.

Once defined, each sub area within a project area will be categorised based upon the climate zone, soil type and land use. For example, climate may be categorised as wet tropics, dry tropics, or slopes/high lands; soil type may be categorised as sandy/alluvial soils, clay/clay loam soils, or volcanic soils; and land use may be categorised as grazing/savannah, broad acre/intensive agricultural, or forestr /revegetation. In no way should the present invention be limited to the categories and combination of categories given above.

In addition to defining project areas and sub areas with electronic markers at waypoints, various other techniques will preferably be used to support the definition of a sub area within a project area including: physical site inspection, paddock farm histories, hyperspectral imaging, soil maps, and aerial photography.

In addition to defining the one or more project areas and one or more sub areas within each project area, participants will be required to establish a project baseline evidencing land management practices applied to each sub area of each project area for at least the last 24 months prior to the commencement of the method of the present invention on the project area. The project baseline will record one or more of the following information for each sub area:

- crop/grazing density and rotations;

- number of tills per year;

- brand/type of any chemical fertiliser used and application rates by weight per hectare per year;

- nitrogen levels as percent of weight for each brand/type of chemical fertiliser used, based upon manufacturer's published data;

- brand/type of any biological input/inoculant used and application rates by weight per hectare per year; and

- nitrogen levels as percent of weight for each brand/type of biological input/inoculant used based upon manufacturer's published data.

Prior to undertaking any further steps of the method of the present invention, participants will disclose any past land management practices that may have impacted the soil carbon level. Steps (b) and (d) - measuring/re-measuring one or more soil parameters

One or more soil parameters will be measured by collecting soil samples for testing from each sub area. The samples will be collected at any suitable location within each sub area. Each location where a sample is collected for soil testing will be recorded with a unique identifier, the number of samples collected, and the location waypoints for the polygon or polygons defining the project area and defining the sub area within the project area. Preferably, the coordinates of the locations of all soil samples collected will be determined via GPS and electronically recorded.

Soil will be tested at more than one location and at random locations within each sub area. Preferably, soil samples will be collected and tested at discrete or geographically separated locations within each sub area.

A minimum of four soil samples will be collected and tested for each sub area. However, the number of soil samples collected is proportional to the size of the sub area, i.e., the larger the sub area the more soil samples collected. For instance, a 5000 ha (50,000,000 m ² ) project area may include 15 sub areas with six samples collected from each sub area for soil testing.

Soil samples collected from each sub area will be tested to determine the total carbon contained to a depth of 30 cm within the soil. Preferably, the samples will be collected in accordance with Australian standard procedure compliant with ISO standards [ISO 10381-2] or a similarly recognised standard for such activity.

Collected soil samples will be sent to an accredited laboratory for analysis and determination of the one or more soil parameters. The one or more soil parameters will include one or more of the following: total carbon (TC); total organic carbon (TOC); soil type/structure; total plant available phosphorus; and total moisture.

Upon determination of the one or more soil parameters for each collected soil sample, the parameters will be collated across all sub areas within a project area and adjusted to ensure statistical certainty of aggregate parameters assigned to each project area.

Step (d) of the present invention, remeasuring the one or more soil parameters from the one or more sample sectors or parts of each project will typically be taken in the same manner as in step (b). Total organic carbon analysis may be undertaken using either a dry combustion method or mid-infrared (MIR) spectroscopy. It is envisaged, however, that other technologies or techniques for the analysis of total organic carbon will be used instead of the dry combustion method or MIR spectroscopy as they become available and are recognized.

Preferably, a method for the analysis of total plant available phosphorus which is suited to or applicable in all project lands may be used such that sample analysis values obtained from all project lands may be compared.

All parameters determined in steps (b) and (d) will be published and permanently stored in an electronic format. The published data will be accessible to nominated external auditors/verifiers.

Step (c) - implementing land management practices to improve soil carbon sequestration

Following the initial measurement of the one or more soil parameters from the at least four sub areas of each project area in step (b), at least two land management practices adapted to increase soil carbon sequestration will be implemented on each project area.

Typically, the at least two land management practices implemented will result in an increase in photosynthetic activity - photosynthesis being considered the prime source of improvement in soil carbon reserves by the sequestering of carbon dioxide from the atmosphere. Atmospheric carbon sequestered by photosynthesis will be transferred to the soil via plant roots or by virtue of the increase in biomass of other organisms responsible for the performance of photosynthesis and the subsequent transfer of carbon structures on and in the soil.

Participants may select any combination of land management practices shown to have a capacity to increase photosynthetic activity. Preferably, such land management practices have been assessed by an independent review. Participants may use any two land management practices specifically suited to their particular project area. Preferably, the at least two land management practices implemented will, in addition to increasing overall photosynthetic activity, also:

- increase the proportion and duration of groundcover;

- minimise disturbance to soil structure;

- increase water retention to, and improve water balance in, at least the first 30 cm of the soil profile;

- promote the production and/or retention of below-ground biomass above that in the baseline scenario; and/or

- promote the development and/or maintenance of soil biota.

Whilst implementing the at least two land management practices, participants will implement minimal tillage practices and a reduction in the use of non-biological fertiliser applied to the one or more project areas. If a participant of the method of the present invention elects to use a biological fertiliser/inoculant in place of chemical fertiliser, the participant will have to establish that the total nitrogen applied over the project area by weight per year is lower than the total nitrogen applied in the baseline scenario.

Preferably, at least one of the at least two land management practices implemented will have not previously been implemented on the project area. Even more preferably, both of the at least two land management practices implemented will have both not have been previously implemented on the project area.

Steps (e) to (g) , Following the remeasuring of the one or more soil parameters in step (d), the combined net abatement of greenhouse gases is calculated. The combined net abatement of greenhouse gases is calculated based upon the statistical difference between the one or more soil parameters at steps (b) and (d) of the method of the present invention. The calculation of the net abatement of greenhouse gases will include soil carbon reserves within each project area to a depth of about 30 cm. The net abatement of greenhouse gases will typically include an assessment of the implemented land management practices that result in changes in soil carbon stocks resulting, desirably, in an increase in soil carbon sequestration within the soil carbon reserves.

In calculating the net abatement of greenhouse gases, the TOC determined from steps (b) and (d) of the present invention will be averaged to calculate the mean TOC for each sub area by dividing the sum of all TOC measurements, as a % by weight, taken from locations within the sub area by the number of locations tested within the sub area.

The standard deviation for the mean TOC for each sub area is also calculated.

,

Soil bulk density, necessary to convert percentage carbon in samples to carbon density, may be estimated from the organic carbon measurement using the combined pedotransfer functions (recommended in [Valzano et. al. (2005) 'The impact of tillage on changes in soil carbon density with special emphasis on Australian conditions' National Carbon Accounting System Technical Report no. 43, Commonwealth of Australia, Department of the Environment and Heritage, Australian Greenhouse Office]). The bulk density value may be calculated by determining the mean of the three separate pedotransfer functions, the three of which have been individually in the prior art been shown to represent a valid mechanism for the extrapolation of bulk density values.

Once the above calculations have been carried out for the TOC from the one or more soil parameters measured and remeasured in steps (b) and (d) of the present invention, the net carbon change is calculated based on the changing carbon densities over the period between the initial measuring of step (b) and the remeasuring of step (d). This period will be 5 years.

The change in carbon density (in tC ha) for sub area (S) for after step (d) may be calculated by determining the net change in carbon density for a sub area from carbon density measurements determined at steps (b) and (d), including a stratum confidence interval of preferably 90% for change in carbon density for the sub area, in tC/Ha.

Based upon the calculation of the change in carbon density for each sub area, the net greenhouse gas abatement will then be calculated. The net greenhouse gas abatement for a project area will be calculated as the sum of all change in carbon density for all sub areas within a project area less any enteric emissions, wherein change in carbon density is converted to net greenhouse gas abatement multiplying the sum of all change in carbon density by a C0 ₂ conversion factor of 3.67, to convert tC to tC0 ₂ e.

The enteric emissions will be calculated based upon methane emissions from livestock maintained on the one or more of the project areas.

The net greenhouse gas abatement of the project areas will then be calculated as the sum of the net greenhouse gas abatement for all project areas.

Following the calculation of the combined net abatement of greenhouse gases, contributions to a reserve buffer will be calculated. As with the combined net abatement of greenhouse gases, the contribution to the reserve buffer will be calculated based upon combined net changes in soil parameters from the at least four sub areas of the project areas.

Contribution to the reserve buffer from each project area represents the difference between the calculated net abatement of greenhouse gases for a project area and the claimed net abatement of greenhouse gases for a project area. "

The claimed net abatement of greenhouse gases for a project area will be calculated as the product of the calculated net abatement of greenhouse gases, in tC02e, and the reserve buffer number, as a percentage.

The claimed net abatement of greenhouse gases may be used as the basis for the issuance of carbon credits according to the respective legislation of the jurisdiction within which the method of the present invention is implemented or according to any relevant procedure applied to the market in which such carbon credits are to be sold.

The reserve buffer for a project area may be calculated as the product of the net abatement of greenhouse gases and the remainder of the reserve buffer number, as a percentage. For the above calculation a reserve buffer of 50% of the net abatement of greenhouse gases is exemplified. Depending on the length of time in which the method of the present invention is implemented, the total contribution to the reserve buffer will decrease proportionally with the duration that the method is implemented. For instance, a method that is implemented for only 5 years may have a reserve buffer contribution of 50% of the net abatement of greenhouse gases achieved, whereas a method that has been implemented for over 10 years may in its eleventh year, have some of its initial contributions to. the reserve buffer returned or have contributions from subsequently recorded gains reduced such that its total reserve buffer contribution amounts to 10% of the net abatement of greenhouse gases achieved over the -performance period.

It is preferred that any redistribution of contributions made from a reserve buffer are dependent upon the aggregated performance of all project areas over time and are made in proportion to the contribution to the reserve buffer made by project participants within the first 5 years of participation. As such, the reserve buffer will simultaneously act to encourage participants to continue with the implemented land management practices, which will improve or maintain a soil carbon reserve and enable the effective management of the aggregate of the one or more project areas of one or more of individual variability, volatility or uncertainty associated with each project area.

A skilled addressee will appreciate that many embodiments and variations can be made without departing from the ambit of the present invention. Reference throughout this specification to "one embodiment" or "an embodiment" means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the present invention. Thus, the appearance of the phrases "in one embodiment" or "in an embodiment" in various places throughout this specification are not necessarily all referring to the same embodiment. Furthermore, the particular features, structures, or characteristics may be combined in any suitable manner in one or more combinations. . In compliance with the statute, the invention has been described in language more or less specific to structural of methodical features. It is to be understood that the invention is not limited to specific features shown or described since the means herein described comprises preferred forms of putting the invention into effect.

Throughout the specification and claims, unless the context requires otherwise, the term "comprise", or variations such as "comprises" or "comprising", will be understood to apply the inclusion of the stated integer or groups of integers but not the exclusion of any other integer or group of integers.