The climate is changing. Regardless of whether man-made or natural forces are the main driving force, the wool and sheep industry can contribute to reducing the impact of greenhouse gases and potentially generate an additional income stream through carbon trading.

However, the climate change issue is complex, technically and politically with many unknowns. Collaborative research will aim to unlock some of the unknowns in relation to Australian agriculture, and provide opportunities for woolgrowers to participate at an optimal level.

Climate change is likely to result in a range of impacts, short and long term, affecting the resilience and capability of grazing enterprises to respond to risk.

While woolgrowers are adapting their systems constantly to address new threats, grazing businesses require adaptation strategies to ensure long term business sustainability.

AWI currently has an number of R&D investments which are finding innovations to help Australian woolgrowers adapt to the changes and opportunities which will come from a changing climate.

AWI makes investment decisions in the environment, climate change and carbon area based on Strategy Three of the AWI on-farm Strategic framework. The key programs for this framework are:

• Program 1: The Environment and Climate Change;
• Program 2: Carbon;
• Program 3: Provenance, Verification and Promotion of Wool Carbon Eco-Credentials.

Current Projects

AWI has a number of R&D investments in the carbon and climate change area, which have the following aims:

1. Help increase grower resilience and adaptability to climate change;
2. Improve productivity through advances in carbon sequstration and global GHG mitigation; and
3. Provencance and eco-credentials to protect market access, support participation in carbon trading markets and enhance demand for wool.

For more information regarding current and past AWI investments click here.

Latest publications and reports

• The final report from WP531 'Modelling the impact of a carbon tax on the Australian wool industry' is now online. This broad modelling project provides an estimate of the likely impact of a carbon tax on input costs for Australian sheep farming enterprises. .
• The final report from WP504 ‘Farm level modelling of greenhouse emission mitigation and sequestration options for the Australian wool industry' is now online. The project examined the impact of a carbon price on the future profitability of sheep farms in Australia. Given the static nature of the modelling the results are best interpreted as providing an indication of the challenge the policy will present for sheep farm business, rather than projecting actual future incomes. .

Additional tools and resources

• AWI has developed a to help woolgrowers better interpret climate change discusssions.
• Climate Kelpie is for Australian farmers and their advisors. It connects you to tools and information about climate to help you make decisions about your farm business.
• Developed by the Australian Farm Institute, FarmGAS can be used to estimate your farm’s annual GHG emissions, both at the individual enterprise activity level and for the farm as a whole, and to examine the financial impacts that different greenhouse mitigation options may have on farm business profitability.
• The Bureau of Meteorology’s Water and the Land website aims to provide an integrated suite of information for people involved in primary production, natural resource management, industry, trade and commerce. The website brings together a range of services from rainfall forecasts for the week ahead to climate change and trend maps in an easily accessible and intuitive way.

Carbon farming funding from Government

Caring for our County: ‘Community Action Grants’
Community Action Grants are a small grants component of the Federal Government's Caring for our Country initiative that aims to help local community groups take action to conserve and protect their natural environment. Grants range between $5000 and $20,000. The 2012-13 Community Action Grants round is now open. Applications close at 5pm (AEDT) 27 March 2012.
More information: www.nrm.gov.au/funding/cag

Department of Climate Change and Energy Efficiency: ‘Carbon Farming Initiative non-Kyoto carbon fund’
This program, with funding of $250 million over six years, will commence in July 2013. You can register your interest in receiving email updates about the fund and the other land sector measures by emailing the Carbon Farming Initiative at cfi@climatechange.gov.au.
More information: www.climatechange.gov.au/government/initiatives/carbon-farming-initiative-non-kyoto

Department of Climate Change and Energy Efficiency: ‘Carbon Farming Skills program’
This program, with funding of $4 million over five years, will commence in July 2012. You can register your interest in receiving email updates about the fund and the other land sector measures by emailing the Carbon Farming Initiative at cfi@climatechange.gov.au
More information: www.climatechange.gov.au/government/initiatives/carbon-farming-skills

Additional information

• Media release: Recognising sheep in the natural carbon cycle (18/11/10)
• Media release: COP15: Turn down the heat with wool (15/12/09)
• Media release: Canberra Ag credits welcomed by Wool Carbon Alliance (18/11/09)
• Media release: Wool, a naturally carbon friendly fibre (03/11/09)
• Current Projects under AWI’s Strategy 3: The Environment, Climate Change and Carbon

Background and glossary

Download the background and glossary of agricultural climate change terms .