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Fact Sheet ENVIRONMENT WINEMAKING Climate change mitigation and the Emissions Reduction Fund /201337496692? pt=LH_DefaultDo main_15&var=&h ash=item2ee0a6 6474 What is the Emissions Reduction Fund? The level of carbon dioxide (CO ) in the 2 atmosphere was relatively constant around The Emissions Reduction Fund (ERF) is a 280-290 mg/L from 0 AD until the beginning carbon offsets scheme that aims to protect of industrialisation. In the last 250 years, the the environment by reducing greenhouse gas CO level has increased to 395 mg/L (Bureau 2 emissions and increasing the amount of of Meteorology and CSIRO 2014) which has carbon stored in the landscape. It is the resulted in an increase in the near surface centrepiece of the Australian Government's temperature of 0.7oC or an increase of 1.26oC Direct Action Plan. The ERF builds on the across the world’s wine regions (Jones et al. Carbon Farming Initiative (CFI) which was 2005). targeted at emission reduction activities on the land only. The ERF provides incentives across the Australian economy for businesses, Why is it important to decrease GHG state and local governments, community emissions? organisations and individuals to adopt new The earth’s surface is warming and this is practices and technologies which reduce directly linked to GHG emissions. Mitigating emissions. GHG emissions is essential if this warming is to be slowed or reversed. All industries should What are greenhouse gas emissions? consider how they are going to go about mitigating emissions, and this includes the Greenhouse gases (GHGs) include carbon Australian grape and wine sector. dioxide, methane and nitrous oxide. When these gases are produced, released or retained in the atmosphere they cause increases in the earth’s surface temperature. Updated December 2015 Fact Sheet ENVIRONMENT WINEMAKING Australia’s GHG emission reduction fertiliser applied. Because the global warming commitment potential of N O is around 300 times that of 2 /201337496692? CO its contribution to global warming is 2 The Australian Government has committed to significant, even though its volume is small. the second stage of the international Kyoto Overall however, the GHG emissions from pt=LH_DefaultDo protocol to reduce Australia’s emissions to viticulture are less than other broadacre five per cent below the year 2000 levels by agricultures, much less than livestock-based 2020. These Kyoto targets for GHG emissions agriculture, where methane is produced, and main_15&var=&h aim to prevent the increase in mean annual considerably less than emissions from mining temperature from exceeding 2oC by 2100, and fuel industries. compared to the temperature in 1900. ash=item2ee0a6 AWRI energy audits have shown that heating and refrigeration account for very high Do vineyards and wineries produce percentages of a winery’s energy GHG emissions? 6474 consumption; the main contributors of GHG emissions from wineries are the indirect The largest proportion of emissions from emissions associated with electricity vineyards are indirect emissions from the use generation. of electricity and fuel (diesel and petrol), plus a small component of nitrous oxide (N O) 2 The two charts below summarise typical related to fertiliser use and soil management. sources of emissions from Australian Nitrous oxide is naturally released from soils; vineyards and wineries (www.wfa.org.au) however the volume released is affected by the amount and timing of any nitrogen Updated December 2015 Fact Sheet ENVIRONMENT WINEMAKING What level of emissions do To ensure emissions reductions purchased grapegrowers and winemakers do not result in rise in emissions elsewhere /201337496692? produce? in the economy, facilities with large emissions will be subject to emission Agricultural and forestry producers, which reduction baselines. pt=LH_DefaultDo include grapegrowers and wineries, account for 21% of Australia's net greenhouse gas emissions (National Inventory Report 2012, Can vineyards or wineries participate main_15&var=&h Volume 1). A wine industry-specific calculator in the ERF? has been developed for grapegrowers and Approved methods applicable for vineyards winemakers to estimate their own emissions. inaclusdeh: =item2ee0a6 Access the calculator at http://www.awri.com.au/industry_support/ent 1. Environmental tree plantings wine/carbon-calculator/ 6474 This is generally only viable on large land areas (>200 ha) with low land price and low How does the ERF work? production value and thus is generally not suitable for vineyard land The ERF will operate through three mechanisms: 2. Sequestering carbon in the soil 1. Crediting emission reductions Several practices for sequestering carbon are detailed in the related AWRI factsheet Carbon dioxide, methane and nitrous oxide ‘Managing greenhouse gas emissions in emissions reductions are measured as viticulture’; however due to the low tonnes of carbon dioxide equivalents (CO 2- e). One tonne of emissions reduction emissions produced by vineyards these are unlikely to be viable for generation of equates to one Australian Carbon Credit ACCUs but are still opportunities to reduce Unit (ACCU). ACCUs can be generated by overall vineyard emissions activities that use an approved ERF method. The activity must either reduce greenhouse Approved method applicable for wineries gas emissions or sequester carbon in include: vegetation or soils. 1. Commercial building energy efficiency 2. Purchasing emission reductions Activities to reduce emissions associated The Government has allocated $2.55 billion with fuel combustion and electricity dollars to purchase emissions reductions consumption in buildings, or to improve or ACCUs. ACCUs will be purchased by the the energy efficiency of a commercial Government through four annual auctions. building could include modifying, removing Participants will submit a bid specifying a or replacing energy-consuming equipment price per ACCU, with the lowest cost ACCUs in the building, changing energy use within or projects being selected. the building, or changing the components or shell of the building to influence energy 3. Safeguarding emission reductions consumption. The National Australian Built Environment Rating System (NABERS) Updated December 2015 Fact Sheet ENVIRONMENT WINEMAKING energy ratings and tools for commercial http://www.environment.gov.au/climate- buildings are used to quantify emissions change/emissions-reduction-fund /201337496692? reductions and energy savings from energy This site provides up-to-date information on efficiency activities. Participants can the ERF. evaluate whether the potential return from pt=LH_DefaultDo a project outweighs the cost of http://www.cleanenergyregulator.gov.au/Emis implementing the project using the sions-Reduction-Fund feasibility tool on the Clean Energy main_15&var=&h Regulator site: The Clean Energy Regulator is the Government body responsible for http://www.cleanenergyregulator.gov.au/Emis adamsinishter=ing iletgeislamtion t2o reeduece c0arbaon6 sions-Reduction-Fund/Want-to-participate-in- emissions and increase the use of clean the-Emissions-Reduction-Fund/Planning-a- energy. project/Feasibility-and-project-planning 6474 Project aims While there are currently few methods that allow the grape and wine sector to participate This AWRI project Building resilience and and viably generate ACCUs our sector still has sustainability in the grape and wine sector aims a role to play in reducing Australian and to collate and deliver up-to-date technical global emissions. information about greenhouse gas emissions, carbon sequestration and opportunities that the Emissions Reduction Fund can provide. Another indirect use of the ERF is as a Project extension officers will offer mechanism to quantify and demonstrate grapegrowers and winemakers support to environmental and green credentials. With reduce their emissions and consider export of more than 70% of Australian wine to opportunities to benefit financially from overseas markets, and large supermarket participation in the Emissions Reduction Fund. chains increasingly demanding green products, expectation of green credentials is expected to increase. Acknowledgement The AWRI’s project Building resilience and Relevant websites for CFI and ERF sustainability in the grape and wine sector is supported by funding from the Australian http://www.myCarbonFarming.com.au Government. This site aims to assist farmers, land managers and other stakeholders to learn about the ERF, discover how to commence and manage a project, see what projects are already happening and get in touch with people and organisations that can help. Updated December 2015 Fact Sheet ENVIRONMENT WINEMAKING References and further reading Contact Jones, G.V. White, M.A. Cooper, O.R. F/or2 fur0the1r in3for3ma7tion4, pl9eas6e co6nta9ct:2 ? Storchmann, K. 2005. Climate Change and AWRI helpdesk Global Wine Quality. Climatic Change 73 (3): pt=LH_DefaultDo 319-343. Phone 08 8313 6600 Fax 08 8313 6601 CSIRO and BoM 2014, State of the Climate Email [email protected] 2014, prepared by CSIRO and the Bureau of main_15&var=&h Meteorology, Canberra Website www.awri.com.au (http://www.bom.gov.au/state-of-the-climate/). Aaddrseshs W=inei Itnneovamtion 2Cenetrael Bu0ildaing6, Department of Innovation, Industry, Climate Corner of Hartley Grove & Paratoo Rd, Change, Science, Research and Tertiary Urrbrae (Adelaide), SA 5064 Education (DIICCSRTE) 2013, Australian 6474 National Greenhouse Accounts—National Inventory Report 2011 (Volume 1), Canberra. (http://www.environment.gov.au/climate- change/greenhouse-gas- measurement/publications/national- inventory-report-2011) Updated December 2015