Background
As the global push towards carbon neutrality intensifies ahead of the introduction in Australia of mandatory climate disclosure for corporates, the wine industry is increasingly under pressure to reduce its carbon footprint. The Australian grape and wine sector has set ambitious targets, including a 42% reduction in emissions by 2030, with a pathway to net zero by 2050. In response, FarmLab, in collaboration with key partners including Joe Siebert from Queteka, PIRSA, Wine Australia, and Treasury Wine Estates, embarked on a project to explore carbon insetting in vineyards across South Australia. This case study delves into the results and implications of this initiative, focusing on the key findings from regenerative grape grower Hither & Yon.
Why Carbon Insetting?
The traditional approach to achieving carbon neutrality in agriculture has been through carbon offsetting, which involves purchasing carbon credits to compensate for emissions. However, this method is becoming increasingly expensive and less sustainable due to the rising demand for carbon credits. Carbon insetting offers a more cost-effective and environmentally integrated alternative. By sequestering carbon within their own operations, vineyards can reduce their net emissions without relying on external credits. This approach not only helps the environment but also supports the long-term sustainability of the agricultural practices involved.
The Project: Key Deliverables
The FarmLab project aimed to quantify soil carbon stocks, estimate potential carbon sequestration, and prepare a land management strategy for five South Australian vineyards. The ultimate goal was to register an Australian Carbon Credit Units (ACCU) generating soil carbon project for these vineyards—a first of its kind in the region. The project also explored emissions intensity reporting options for the winegrape market, a crucial step towards transparent and verifiable carbon insetting practices.
Methodology
The project followed the ‘CER Methodology Determination 2021’, ensuring compliance with the Carbon Credits (Carbon Farming Initiative—Estimation of Soil Organic Carbon Sequestration using Measurement and Models) Methodology. This rigorous approach was necessary to ensure that the carbon sequestration estimates would be recognized by Climate Active, which currently only accepts estimates from CER-registered projects.
The methodology involved defining Carbon Estimation Areas (CEAs) within the vineyards, using aerial surveys or RTK ground surveys to locate vineyard rows and posts. This data was used to model row structures and define CEAs for undervine and interrow management areas. The standardized system developed through this process is scalable and reproducible across other vineyard and alley-crop sites.
Results: Soil and Tree Carbon Estimation
The results of the project were promising, indicating significant potential for carbon sequestration in South Australian vineyards. For instance, the McLaren Flat vineyard showed soil carbon stocks ranging from 55.6 tCO2e/ha to 61.4 tCO2e/ha, with an additional carbon sequestration potential through tree plantings estimated between 12.3 and 15.1 tCO2e/ha/yr.
The project also employed LiDAR mapping for tree carbon estimation, offering a highly accurate method for measuring tree volume and corresponding carbon sequestration. For example, the Willunga vineyard achieved a maximum carbon sequestration rate at around five years, with significant potential for continued sequestration over the long term.
Key Takeaways
The FarmLab project demonstrated that achieving carbon neutrality at the vineyard production level is within reach, and able to substantially reduce greenhouse gas emissions from the grape growing operation. Whilst challenges still exist in reducing scope 3 emissions from a growers supply chains (in particular emissions produced from packaging materials such as the wine bottles, which have a substantial carbon footprint), it is expected that innovations in these industries such as the use of oxy-fuel burners, improved furnace technology and recycling will continue to bring down the emissions footprint of bottling supply chains.
Using the FarmLab platform, the case identify the ability for technology to reduce project costs, in particular:
Registration and Compliance Costs: Registering soil carbon projects with CER is expensive, and vineyards will need financial support to cover these costs. Without adequate data collection tools and methods, audit and compliance costs are approximately $20,000 per crediting round, or about 25% of projects costs. Through improved data management and reporting using FarmLab, and this figure is being reduced by 20-50%.
Measurement Variability: The project highlighted the challenge of measuring small gains in soil organic carbon (SOC) amidst sampling variability. In traditional sampling, where techniques to map soil don’t always accurately represent the spatial variability of carbon, the low sampling accuracy may reduce or completely void any increase in soil carbon (otherwise known as ‘minimum detectable change’.) Using FarmLab’s digital soil mapping platform, along with some ground truthed data and Lidar scans from Airborne Logic, sampling variance can be reduced substantially. For more on this, see our post on Advancing Quantification with Remote Sensing and Machine Learning.
Tree Planting Opportunities: Tree planting is a crucial component of carbon insetting, offering a supplement to carbon credits generate through soil. Although it removes agricultural land from production, the project finds many areas of farms (where production is low anyway) offer a suitable location for tree projects. The introduction of the ‘Pilot Method for Environmental Plantings’, also significantly reduces the complexity of projects, allowing growers to simply use an online tool integrated into FarmLab (LOOC-C) to calculate and provide carbon sequestration estimates for above ground tree plantings.
Conclusion: The Future of Carbon Insetting in Viticulture
The FarmLab project has paved the way for more sustainable viticulture practices in South Australia. By focusing on carbon insetting rather than offsetting, vineyards can take control of their carbon footprint, contributing to the broader industry goal of net zero emissions. However, achieving widespread adoption will require industry-wide support, including amendments to regulatory frameworks and financial incentives for vineyards undertaking carbon insetting projects.
As the wine industry continues to navigate the complexities of carbon management, FarmLab remains committed to providing innovative solutions that not only benefit the environment but also enhance the economic viability of viticulture. The lessons learned from this project will be invaluable as the industry moves towards a more sustainable and carbon-neutral future.
Special thanks to our partners, Queteka, Airborne Logic, Primary Industries and Regions South Australia, Hither and Yon and Treasury Wine Estates!