DEPARTMENT OF

ENVIRONMENT AND
NATURAL RESOURCES

NORTHERN TERRITORY
ABORIGINAL CARBON
INDUSTRY STRATEGY

www.nt.gov.au NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY | A

 CONTENTS

INTRODUCTION...................................................................................................................................................1

THE CARBON INDUSTRY – HISTORY AND OVERVIEW ............................................................... 2

CARBON FARMING IN THE NORTHERN TERRITORY ................................................................... 3

THE NT ABORIGINAL CARBON INDUSTRY STRATEGY................................................................. 4

PRIORITY AREAS FOR ACTION............................................................................................................. 4

THE ABORIGINAL CARBON UNIT........................................................................................................ 4

1. DEVELOPING A POLICY FRAMEWORK............................................................................................5

TO PROVIDE CERTAINTY AND A STABLE BASE FOR INDUSTRY DEVELOPMENT.............5

ACTIONS................................................................................................................................................5

2. IMPROVING AWARENESS ....................................................................................................................6

TO PROMOTE THE INDUSTRY ACROSS GOVERNMENT

AND THE WIDER COMMUNITY......................................................................................................6

ACTIONS................................................................................................................................................6

3. ADDRESSING IMPEDIMENTS..............................................................................................................7

TO LONG TERM GROWTH AND PROJECT DEVELOPMENT....................................................7

ACTIONS................................................................................................................................................7

4. IDENTIFYING NEW OPPORTUNITIES ..............................................................................................8

FOR INDUSTRY DEVELOPMENT AND GROWTH.......................................................................8

ACTIONS................................................................................................................................................8

5. STREAMLINING ACCESS .......................................................................................................................9

TO SUPPORT SERVICES FOR INDUSTRY START UP AND DEVELOPMENT..........................9

ACTIONS................................................................................................................................................9

ii | NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY

INTRODUCTION
The Northern Territory Government is committed to remote, undeveloped or under-managed land, with little
supporting land management and economic development or no existing infrastructure, is of significant advantage to
on Aboriginal land through its Protecting Country the Territory.
– Creating Jobs policy, specifically supporting the
The sustainability and growth of the industry is not
expansion of the Aboriginal carbon industry through the
just in the hands of the Territory Government, it also
establishment of an Aboriginal Carbon Unit. The unit will rests with the Commonwealth and other states, carbon
play a key role in implementing the Northern Territory project enterprises, Traditional Owners, Aboriginal land
Aboriginal Carbon Industry Strategy (the Strategy). management organisations, education and research
The Strategy establishes the Territory Government’s institutions, communities and individuals. The Strategy has
approach to supporting the continuation and development been developed with advice, experience and input from
of greenhouse gas emissions abatement and carbon these entities and organisations.
sequestration activities on Aboriginal land (as defined in The Strategy is the Government’s plan to meet the
the Aboriginal Land Rights (Northern Territory) Act 1976 challenge of a changing economy by creating a stronger
across the Territory. Collectively, these activities have environment for Aboriginal carbon based projects to
come to be known as the Aboriginal carbon industry (the establish and expand. The Strategy commits Government
Industry). to actions that will both address impediments to industry
This rapidly evolving industry relies on the Commonwealth development, and identify and develop new opportunities.
Government providing financial incentives for landowners These actions include:
and businesses to reduce greenhouse gas emissions. • working with researchers and the regulators to support
Benefits generated through the reduction of emissions are development and approval of new methodologies;
sold to the Commonwealth in the form of carbon credits.
The carbon credit market exists within a complex policy • identifying new opportunities by investigating
and regulatory environment encompassing; international and connecting with new emissions offsets and
agreements, Commonwealth regulatory and funding environmental services markets; and
frameworks, and state/territory policy and support • investigating opportunities to create markets for
arrangements. A voluntary secondary market is emerging offsets associated with the social, cultural and
which provides another avenue for carbon credit and environmental benefits that flow from emissions
economic generation. reduction projects.
Fire abatement projects, in particular savanna burning, One of the challenges in developing a strategy for the
provide unique opportunities for employment and Industry is the limited understanding of the carbon market
economic development on Aboriginal land. Projects across the wider Territory community. The Strategy
largely align with traditional land management practices provides a brief overview and history of the development
and utilise locally available land management skills and of the carbon industry in Australia and specifically the
knowledge. The peculiarity that projects are best suited on Northern Territory.

NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY | 1

THE CARBON INDUSTRY – HISTORY AND OVERVIEW
In December 2015, an historic global climate agreement Carbon farming activities provide a significant proportion
was agreed at a conference of parties held in Paris under of the emission reductions required to meet Australia’s
the United Nations Framework Convention on Climate 2030 target. In an approved emission abatement project,
Change. The Paris Agreement sets in place a framework historic data is used to determine a baseline level of
for all countries to take climate action designed to limit greenhouse gas production. The actual production
average global temperature increase to below 2°C. of greenhouse gases is then compared with the
baseline production, and one Australian Carbon Credit
Australia formally ratified the Paris Agreement in Unit (ACCU) is issued for each one tonne of verified
November 2016. The mechanism for limiting global emission reduction. These credits can then be sold to
temperature increase is the reduction of greenhouse the Commonwealth through the ERF, or sold through a
gas emissions. Industry, agriculture, transport, energy secondary ‘voluntary’ market.
production, bushfires and many other anthropogenic and
natural processes produce these gases. Many carbon industry projects in the Territory are
contractually required to achieve and document
Greenhouse gases are so named because, at higher emission reductions through land and fire management
concentrations in the atmosphere, they contribute to activities. In achieving those contractual targets, it is
the ‘greenhouse effect’. This effect traps heat in the often the case that significant environmental, social,
atmosphere, causing the average global temperature to cultural and economic benefits are also generated. Better
rise. Carbon dioxide is one of many gases that contribute understanding of the nature and value of these associated
to the greenhouse effect; in public discussion and debate benefits has potential to trigger new income streams
the description of greenhouse gases is often simplified associated with other offset arrangements.
by referring only to carbon or carbon dioxide. In order
to simplify emissions abatement project accounting, The voluntary carbon credit market is currently
greenhouse gas production or abatement is measured in considerably smaller than the formal market hosted by
the ERF, but there is potential for significant growth.
units of ‘carbon dioxide equivalent’, and the currency of
Offset providers negotiate directly with the purchasers,
these projects is ‘carbon credits’.
and there is potential for the agreed value of these
Australia has agreed to an emissions reduction target of offsets to, in time, better reflect the associated social,
26-28 percent below 2005 levels by 2030. The primary cultural and environmental benefits that can flow from
policy device to achieve this target was the establishment emissions abatement projects on Aboriginal land. There
of the Emissions Reduction Fund (ERF). The fund provides are significant opportunities to market these offsets
incentives for Australian land-owners and enterprises to as a solution for corporations seeking to comply with
reduce greenhouse gas emissions. corporate social and environmental responsibility policies.

Photo source: J. Klein, ALFA (NT) Limited.

2 | NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY

CARBON FARMING IN THE
NORTHERN TERRITORY
The term carbon farming refers to activities
that reduce greenhouse gas emissions through
agricultural or land management practices,
either storing carbon in the soil or vegetation,
or reducing emissions. Under the ERF,
projects must use an approved emission
reduction method. Many of the 25 approved
projects in the Northern Territory, and all of
the projects on Aboriginal land, use approved
methods associated with reducing emissions
generated by bushfires. These are known as
savanna burning methodologies.
Savanna burning projects reduce greenhouse
gas emissions by implementing a strategic fire
management program. These methodologies are
based on the principle that strategic, early season
burning, which is characterised by ‘cool’ planned
burns and relatively low greenhouse gas emissions,
can prevent, or reduce the scale of, unplanned
late season fires. Late season fires are much more
destructive, and generate much higher greenhouse gas
emissions, than early season planned burning.
Historically, uncontrolled savanna burning is estimated
to have produced around 40 percent of greenhouse
gas emissions in the Territory. The strategic fire
management practices used in savanna burning projects
can reduce emissions from an area by up to 50 percent.
There is clearly significant potential for the industry to
contribute to improved environmental outcomes in the WALFA utilised pioneering techniques for emissions
Northern Territory. reduction using fire management practices developed
through collaboration between traditional owners and
The Territory has an established history of successful
Territory based researchers in 1990s and early 2000s.
carbon industry projects. The West Arnhem Land Fire
Northern Territory researchers and fire management
Abatement project (WALFA) commenced in 2006. This
research outcomes have remained at the forefront of
project is based on an agreement between traditional
methodology development for the industry. The ongoing
owners, the Northern Territory Government and Darwin
existence of a strong fire management research capacity
Liquefied Natural Gas Pty Ltd (DLNG). Five Western
continues to benefit the wider Territory community.
Arnhem Land land management groups were funded by
DLNG to reduce greenhouse gas emissions by 100 000 Current approved savanna burning methodologies can
tonnes CO2 equivalent each year. only be used in areas with greater than 600 mm mean
annual rainfall; this takes in approximately 30 percent of
The impetus for this agreement was a one-off regulatory
the Northern Territory land area. More than 50 percent of
requirement for DLNG to offset greenhouse gas emissions
this currently ‘eligible’ area is Aboriginal land. At the core
and other environmental impacts associated with the
of the savanna burning methodologies is the principle
establishment and operation of its Darwin Harbour gas
that carbon credits are produced by reducing emissions
plant. This project predated emissions abatement policy
to levels below the baseline. Ironically, the need to show
and regulatory frameworks, and was the forerunner of a
improved emission outcomes means that projects
new and important industry in the Territory, and beyond.
are much more likely to be economically viable
There are now 25 approved savanna burning projects
on land that has not been subject to consistent
operating in the Northern Territory.
land and fire management in the past. Land
that has been managed for, say, cattle
production or conservation is much less
likely to provide a viable project site as
previous fire and asset management
has been undertaken.

NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY | 3

THE NT ABORIGINAL CARBON
INDUSTRY STRATEGY
Long term Government support for the industry, along
with continuing strong relationships between Government,
industry and researchers, has been central to the success
of the industry. Territory emission abatement projects on
Aboriginal land are recognised nationally and internationally
as providing outstanding examples of successful Aboriginal
engagement and participation, and best practice operational
and project governance structures. Indeed, there is some
potential to commercialise and export this knowledge and
capacity.
There is opportunity for further expansion of the industry PRIORITY AREAS
in a number of areas. New methodologies based on carbon
sequestration are under development. There are also FOR ACTION
proposals to investigate the potential for fire management The Strategy has been built on the foundation
and sequestration methodologies that could be applied in provided by existing policy and guided resolutely
lower rainfall areas. Perhaps the area of greatest potential for by advice received from industry. As a result the
industry growth is related to development of the voluntary Strategy focuses on five areas of action:
market and recognition of attendant benefits that flow
from emissions reduction projects. This could also involve 1. Developing a policy framework to provide
development of corporate sponsorship arrangements to certainty and a stable base for industry
support relevant projects. development.

In developing this Strategy, the Department of Environment 2. Improving awareness to promote the industry
and Natural Resources consulted widely with industry, who across Government and the wider community.
consistently presented the following clear messages: 3. Addressing impediments to long term growth
• The industry is keen to work with Government on policy and project development.
development in the key areas of climate change impacts, 4. Identifying new opportunities for industry
emissions offsets, recognition and commercialisation of development and growth.
attendant benefits, and industry support arrangements.
5. Streamlining access to support services for
• There is a role for Government in consulting and industry start up and development.
representing industry views to Commonwealth and other
jurisdictions. This could include establishing a consultative
and information sharing network, and providing a point of
contact for the Industry in Government.
• There is a role for Government to raise awareness and
understanding of the industry; promoting industry benefits
both within Government and to the wider community. THE ABORIGINAL CARBON UNIT
• A major impediment to industry development is the lack of The Aboriginal Carbon Unit has been established within
clarity around ‘carbon rights’ – there is a need to clarify the the Department of Environment and Natural Resources.
right to conduct an emissions abatement project across the The unit will coordinate Government support for the
various land tenure and native title arrangements that apply Aboriginal carbon industry, and serve as a point of
on land in the Territory. This will reduce risk and improve contact for industry in dealing with Government. It
certainty for project proponents. will consult widely and continually with industry and
related organisations and individuals in order to build a
• Industry needs support to identify and develop new strong understanding of the industry, and to represent
markets for carbon credits and associated benefits, industry views and circumstances within Government.
particularly with national and international corporations in
the voluntary offset market. The Aboriginal Carbon Unit will monitor the
implementation of this Strategy, and ensure support
• Industry needs a point of contact with Government, and for the industry as opportunities arise. The Aboriginal
access to reliable information about support available, and Carbon Unit will report annually to Government on the
related developments. state of the industry and the implementation of this
Strategy.

4 | NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY

1. DEVELOPING A POLICY
FRAMEWORK ACTIONS
TO PROVIDE CERTAINTY AND A STABLE The Northern Territory Government will:
BASE FOR INDUSTRY DEVELOPMENT
• Investigate policy options for offsetting greenhouse
The Territory Government played a pivotal role in the gas emissions and other environmental impacts
development of early emission reduction projects in associated with the conduct of Government business.
Arnhem Land. Important contributions included direct This will include consideration of ways to achieve
support for research and methodology development, and carbon neutral status. Offset arrangements will ensure
direct involvement as a party to the project agreement. maximum benefit for Territory carbon credit producers.
The Government’s participation in the agreement
• Investigate ways to provide incentives for
provided certainty and mitigated risk for the other parties.
business entities, organisations and individuals
Another key Government action was the introduction
to offset greenhouse gas emissions and other
of a one-off regulatory requirement (in the form of an
environmental impacts.
operating licence condition) for emissions and other
environmental impacts to be offset. • Investigate policy options for mandatory offset
requirements for high environmental impact activities.
The regulatory environment around climate change and
emissions reduction has shifted significantly over the last • Investigate the impact on the carbon industry of
decade. The Commonwealth’s commitment to meeting existing Northern Territory legislation and policy, and
substantial emissions reduction targets has seen rapid consider options to reduce any identified existing
evolution of regulatory and project support frameworks negative impacts.
at the federal level. There have been significant policy
• Investigate policy options for improving certainty
shifts along the way, largely driven by strongly held and
for investment in the industry, including the
strongly divergent views about the causes and extent
development of policies around climate change
of climate change. This polarised public debate creates
and environmental offsets.
uncertainty and impacts directly on confidence within
the industry. There is an opportunity to mitigate at least • Provide Territory input into review and development
some of this uncertainty by developing policies and of Commonwealth climate policy, ensuring that
setting targets around climate change and related areas Northern Territory submissions reflect
at the Territory level, and ensuring that the Territory’s industry views.
position is clearly represented in Commonwealth policy
development processes.

NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY | 5

Photo source: J. Klein, ALFA (NT) Limited.

2. IMPROVING AWARENESS
TO PROMOTE THE INDUSTRY ACROSS
GOVERNMENT AND THE WIDER COMMUNITY
Amongst the wider Territory community, the nature
and scale of the Territory’s carbon industry are not well
understood. The industry is relatively new, and most
industry activities take place in remote and little travelled
areas. To many Territorians the industry’s output is hard to
understand (what is a carbon credit?), and the principle on
which the industry is based is counter-intuitive (how do ACTIONS
you reduce emissions by lighting fires?). The Northern Territory Government will:
Even within Government and land management • Develop and implement a communication
organisations, understanding of the industry and its value strategy to improve awareness and
to the Territory and its economy is limited. This lack of understanding of the carbon industry on
understanding adversely impacts on the industry in a Aboriginal land in the Territory. The Strategy
number of ways. Potential investors, project participants should target Government, Territory business
and land owners are missing opportunities, and industry and enterprises, and the wider Territory
growth and expansion is being stifled. Government community.
support and policy development opportunities are being
missed, and in some cases decisions that adversely affect • Identify and promote investment and
the industry are being made with little knowledge or partnership opportunities, including
consideration of those adverse impacts. opportunities to buy Territory produced
carbon credits.
The low industry profile across the wider community
also prevents better understanding of the direct and • Commission research to better quantify
well documented co-benefits (attendant benefits) that the industry’s beneficial economic, social
flow from carbon industry activity. These benefits and environmental impacts on the Territory
include positive economic outcomes through creation economy.
of employment and flow-on economic opportunities on • Create an online presence showcasing
project land; cultural benefits through opportunities to the nature of carbon based industries in
manage land and for younger generations to learn about the Territory, and to promote the range of
traditional land management practices; environmental beneficial impacts of these industries.
benefits through reduced emissions and protection of
landscapes and biodiversity; and social benefits through
creation of opportunities to work and live on traditional
lands.
Better understanding of these positive outcomes
will create more compelling reasons for government,
corporations and individuals to support projects by
using carbon credits to offset their carbon emissions.
Better understanding will also add momentum to the
development of enabling and supportive public policy.

6 | NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY

3. ADDRESSING IMPEDIMENTS
TO LONG TERM GROWTH AND PROJECT DEVELOPMENT
The carbon industry grew rapidly with the arrival of a The great majority of current projects sell carbon credits
largely beneficial Commonwealth regulatory framework to the Commonwealth through the Emissions Reduction
and support system. As the industry looks to consolidate Fund. There are secondary markets for the sale of
and mature, a range of challenges to its continuing credits to corporations or other organisations (including
development are emerging. Poor understanding of government agencies), although accessing these markets
the industry and the benefits that it brings is a major is much more difficult. These markets offer potential to
impediment, as is the lack of certainty stemming from package a range of offsets by identifying the associated
polarised views on climate change. To the extent possible, social, cultural and environmental benefits that flow from
these issues have been addressed elsewhere in this carbon industry projects on Aboriginal land.
Strategy. Through consultation with industry, a number
of significant challenges have been identified.
Determining the right to conduct carbon industry projects
on land is not always straightforward. Fire management
projects involving early season strategic burning combined ACTIONS
with late season fire exclusion and suppression are
seen as equating to usual land management practices. The Northern Territory Government will:
Their impact is immediate, and the benefits are realised • W
 ork with the Commonwealth and other
over a short period. The right to conduct regular land stakeholders to provide clarity around the legal right
management activities is not in doubt, although the and necessary approvals to conduct carbon industry
situation is less clear if the activity generates direct activities across a range land tenure arrangements.
income. Defining rights in this area will be a complex task,
New sequestration methodologies rely on ‘storing’ and may lead to recommendations for legislative
carbon by preventing the burning of dead material. This remedies. It has been acknowledged by industry that
can involve the storing of carbon on the surface or in this will be a long and complex process.
soil, and the approved methodologies require long term • Commission research into secondary offset markets
commitment (25 years or more) to the ongoing storage and establishment of channels for Territory projects
of that carbon. This required term of commitment may, to access those markets. This will align with research
in some cases, exceed the usual term for a land use into recognition and evaluation of associated
agreement or similar arrangement. It is important to clarify benefits described elsewhere in this strategy.
the rights of both landholders and Native Title holders in
these circumstances.

Sequestration methodologies are expected to provide

substantially higher carbon credit productivity than
savanna burning methodologies. The Commonwealth
is working to clarify the legal right to conduct carbon
farming projects on land subject to Native Title.

NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY | 7

Ranger groups in Arnhem Land operating savanna burning projects meet together for the ALFA (NT) Limited,
end of year fire meeting at Buymarr, East Arnhem Land. Photo source: J Ansell, ALFA (NT) Limited.

4. IDENTIFYING NEW
OPPORTUNITIES
FOR INDUSTRY DEVELOPMENT AND GROWTH
 he Aboriginal carbon industry provides many benefits for
T
remote communities and land owners. Carbon industry
projects to date have provided not only a reduction in
greenhouse gas emissions, but dramatic improvements in ACTIONS
other aspects of land management and biodiversity values. The Northern Territory Government will:
Projects have also created economic and social benefits;
jobs on country in remote areas, meaningful work that uses • Investigate opportunities to package emission reduction
many existing skills, and infrastructure than can support activities with other environment and land management
development of other enterprises such as delivery of services in order to achieve economies of scale and
environmental services. better utilisation of skills and resources.

While these associated benefits are widely recognised, • Investigate opportunities to package and market
they are effectively provided by carbon industry projects fire management and project management services.
at no cost to the community. There is potential for the Capacity that has been developed in Territory projects
provision of these benefits to generate a supplementary is likely to be of value to other projects within the
income stream for industry projects. Corporate social Territory, or interstate projects, or even in similar
and environmental responsibility policies are most often projects in other countries.
satisfied through individual sponsorship arrangements • Investigate the potential for developing a market
which are difficult to set up. The lack of easily accessible for attendant benefits. There is currently no public
verification arrangements is a strong impediment to mechanism for corporations to offset social or cultural
corporations getting involved in arrangements of this kind. costs of business activity. An open market for verified
Developing new methodologies will allow the industry to benefits would greatly increase accessibility for the
expand into areas within the Territory where no projects corporate sector. A process for assessment and
currently exist, and identifying new markets for both direct verification of benefits would need to be established.
and indirect outcomes of emissions reduction activities • Investigate potential for development of new
has the potential to increase the viability of existing and methodologies suited to regions where current
proposed projects. There is a clear role for government methodologies cannot be used, particularly in lower
in identifying and supporting the development of rainfall areas of the Territory.
opportunities beyond the existing ERF projects.

8 | NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY

5. STREAMLINING ACCESS
TO SUPPORT SERVICES FOR INDUSTRY
START UP AND DEVELOPMENT
The Northern Territory Government provides a range of There is potential for greater industry and
support services to industries in the Territory. For many larger, Government cohesion and development through
established industries there are assistance programs tailored improved communication and access channels through
to industry needs and established information and support a central point of contact. Developing a central point
networks dedicated to that industry. of contact for both Government and Industry alike,
may assist all stakeholders to find suitable, easily
While the carbon industry does not enjoy access to accessible information and increase communication and
support arrangements that focus specifically on the industry, understanding of both industry and Government needs.
there are a range of business support programs that could
benefit industry development. There is also potential for
the industry to request specific support arrangements in
some circumstances.
Industry growth and expansion requires strong networks
and opportunities for industry learning and collaboration.
The emerging carbon industry, even though developing quite
rapidly, remains comprised of a large number of discrete
projects managed across remote locations by Aboriginal
ranger groups and organisations and has resulted in limited
opportunity for project managers to co-ordinate access to data,
communication with Government and support services.

ACTIONS
The Northern Territory Government will:
• Consult with the Aboriginal carbon industry about how
to best deliver existing support programs for carbon
industry projects.
• Investigate the support needs of industry and consider
ways to provide tailored support programs, which may
include working with existing Northern Territory and
Commonwealth government indigenous employment
services.
• E
 stablish a dedicated website of information regarding
carbon based industries and associated activities in
the NT.
• Identify the Aboriginal Carbon Unit as the primary
point of contact within the Government.
• C
 ollaborate with the Commonwealth and states
to support and sponsor the Indigenous Carbon
Industry Network.
• S
 upport and sponsor annual carbon industry forums
in the NT to connect stakeholders and strengthen
industry relationships.

NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY | 9

www.nt.gov.au
10 | NORTHERN TERRITORY ABORIGINAL CARBON INDUSTRY STRATEGY