Objective 5 – Carbon Market Readiness – Financial Services

Carbon Market Institute Limited

  • Project code: PRO-015076

  • Project stage: Closed

  • Project start date: Saturday, May 29, 2021

  • Project completion date: Wednesday, December 28, 2022

  • National Priority: TIA - Carbon


Complexities surrounding multiple carbon methods, project requirements and scale require rural property professionals and financiers to have a thorough understanding of carbon projects and their impact on agricultural land. CMI has identified that there are differing levels of acceptance and treatment of carbon rights in rural land valuations and in capability and capacity among property professionals and financial institutions. Currently the technical professional standard for the market value of rural and agribusiness properties provides no guidance for treatment of carbon farming or related revenue. This is exacerbated by the lack of standardised data disclosed by carbon farming industry professionals. These limitations restrict the ability of rural valuers engaged to value a landholding subject to a carbon project and directly impacts landholders/producers’ ability to access finance or the consent required to undertake a carbon project. Perversely, landholders have often received a devaluation of their property for the retention of vegetation or plantings protected by some contractual instrument.

This project aims to overcome the abovementioned barriers by providing tools and resources for valuers and financial institutions to correctly treat carbon rights in land valuation practices. It aims to increase financial literacy on carbon farming whilst providing a valuation guidance note, access to information and data, plus tools and training. Project outcomes include improved confidence in rural land valuations subject to carbon projects, reduced transaction times in relation to bank consents and increased producer engagement in carbon markets and recognition of the benefits of carbon farming.  


Transformative Industry Action

Research Organisation

Carbon Market Institute Limited