Citola has successfully implemented the planting program for the Citola Biodiverse Wetland Linkages and Integrated Farming Reforestation project.

The project establishes, manages and enhances biodiverse carbon stores by integrating a biodiverse reforestation program into a commercial farming property to improve ‘on-farm’ productivity while managing invasive species and enhancing the natural biodiversity of native wetlands.  The project is being developed as part of the Australian Biodiversity Fund.

The environmental benefits include reduced salinity, improved soils, improved water quality and retention, habitat creation and carbon sequestration.

The commercial benefits include the creation of windbreaks for stock, reduced evaporation, improvement to soils and an increase in yields from the productive land.  The integration of the forestry system into the commercial cattle operation has seen a reduction in total pasture size by ~30%, however, the overall total loss of productivity is only 5 – 7% resulting in a ~ 35% productivity gain on the remaining pasture.  This improvement is due to gains in the livestock condition from the pasture environment that is more conducive to growth and stock wellbeing.  The landholder is forward-thinking in practicing ‘Savannah-style’ crash grazing and other approaches in pasture management to maximise output and the sustainability of his property.

“The program that we have implemented here in-conjunction with the landholder is a great example of what can be achieved,” Angus MacNee, CEO of Citola Ltd said.  “The positive environmental and commercial benefits speak for themselves and this type of program is a model for sustainable land management and integrated farming for the future.”

Following the planting in April 2013, the project has received positive local press coverage.  The articles can be seen here:

• Citola - 36000 Trees to Live 100 Years - Bairnsdale Advertiser - 20-03-2013
• Citola - Tree Planting Transforms Property - Bairnsdale Advertiser - Primary Producer 8-04-12

The landholder has also coordinated the development of a video (produced by a local media professional) which provides an overview of the project.  It was filmed in April 2013 during the planting of the second phase of the project implementation.

More information about the project, photos, press coverage and the project video can be seen here: Citola Biodiverse Wetland Linkages and Integrated Farming Reforestation project.

Citola has received notice that two Verified Carbon Standard (VCS) Reduced Emission from Deforestation and Degradation (REDD+) methodologies have been approved by the Department of Climate Change and Energy Efficiency (DCCEE) enabling their carbon units to be eligible under the Australian the National Carbon Offset Standard (NCOS).

The Australian Government introduced the National Carbon Offset Standard (NCOS) on 1 July 2010 to provide national consistency and confidence in the domestic voluntary carbon market.  The NCOS Carbon Neutral Program, administered by Low Carbon Australia, allows Australian organisations, products and events to be certified as carbon neutral.

Under NCOS, various internationally recognised Kyoto Protocol units may be used to meet carbon price liabilities such as Certified Emissions Reductions (CERs) from Clean Development Mechanism projects, Emission Reduction Units (ERUs) from Joint Implementation projects and Removal Units (RMUs).

Voluntary units such as Voluntary Emissions Reductions (VERs) issued by the Gold Standard and Verified Carbon Units (VCUs) issued by the Verified Carbon Standard (VCS) are also eligible.  Where credits are issued from Reduced Emissions from Deforestation and Degradation (REDD+) projects they must be generated from projects that have been developed according to methodologies that have approved under the NCOS Standard by the Department of Climate Change and Energy Efficiency (DCCEE).

The two VCS REDD+ methodologies that have been approved by the DCCEE as eligible under NCOS are:

VM0007: REDD Methodology Modules (REDD-MF)

This methodology provides a set of modules for Reducing Emissions from Deforestation and forest Degradation (REDD) that quantify Greenhouse gas (GHG) emission reductions and removals from avoiding unplanned and planned deforestation and forest degradation.  This methodology is applicable to forest lands that would be deforested or degraded in the absence of the project activity and allows the incorporation of sustainable timber production as part of a sustainable management plan.

http://v-c-s.org/methodologies/VM0007

VM00015: Methodology for Avoided Unplanned Deforestation

This methodology estimates greenhouse gas emissions from areas where unplanned deforestation is taking place and quantifies the emission reductions achieved by curbing deforestation for both frontier and mosaic deforestation.

http://v-c-s.org/methodologies/VM0015

Though Citola did have any direct involvement in the development of the VCS methodologies, the company is involved with and developing several REDD+ projects using the VCS VM0007 methodology and its eligibility under NCOS provides Australian client’s access to the VCUs under NCOS and incremental project commercialisation options.  The Brazilian Canuma REDD+ case study can be seen here.

Citola Capital Pty Ltd (ACN 159 147 074; AFSL 425636), a wholly-owned subsidiary of Citola Limited (ACN 153 351 930), has obtained an Australian Financial Services License (AFSL) with number 425636.  The AFSL license enables Citola to deal in carbon emission units and derivatives to wholesale clients specifically Australian Carbon Credit Units (ACCUs).

An Australian Carbon Credit Unit (ACCU) is a unit issued by the Clean Energy Regulator representing a one (1) tonne carbon dioxide equivalent (tCO₂e) net abatement amount avoided or reduced by a Carbon Farming Initiative (CFI) project.  ACCUs can be Kyoto or non-Kyoto compliant depending the CFI project. An ACCU is an item of personal property under the Personal Property Securities Act 2009 (Cth) where the registered holder of the ACCU is its legal owner.  An ACCU is a ‘financial product’ under the Australian Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001. Kyoto compliant ACCUs, and ACCUs that would have been Kyoto ACCUs if the reporting period for the project had ended on or before the Kyoto abatement deadline, are eligible for surrender under the Carbon Pricing Mechanism established by the Clean Energy Act 2011 to meet a compliance obligation under the scheme.

“The AFSL license enables Citola to provide large emitters a commercial and market-based structure to access ACCUs to meet their compliance obligation under the Clean Energy Legislation,” Angus MacNee, CEO of Citola Limited said.  “Citola is uniquely positioned to provide a domestic product that is competitive with European carbon unit (EUAs) price scenarios which will be a requirement for executing long-term contracts that extend beyond June 2015 where the carbon price will float and be determined by the market that will have one-way linkage to the European Union Emissions Trading System (EU ETS).”

In Australia, Citola provides wholesale clients access to a long-term provision of ACCUs from CFI projects and works with the client to understand their specific compliance requirements in-order to provide a product with an appropriate commercial structure.  The AFSL license enables Citola to enter contracts with major counter-parties and trade carbon credits across the Australian carbon market.

Citola Capital Pty Ltd is regulated by the Australian Securities and Investments Commission and holds Australian Financial Services Licence (AFSL) Number 425636.   Any financial products and financial services described on this website, as defined in the Corporations Act 2001 (Cth), are available only to wholesale clients through Citola Capital Pty Ltd.

Citola has launched a new website outlining our business focus on forestry ecosystem resources and natural capital.  We look forward to an exciting 2013.  Subscribe to our e-newsletter to receive more news about Citola and the environmental markets.