To support the achievement of the ambitious net-zero greenhouse gas emissions target, Water for Victoria (the State Government’s Water Plan) states that “Our water sector will be a leader in the state’s climate change mitigation and adaptation actions, and recognises the State’s commitment to achieve net-zero greenhouse gas emissions by 2050 as flowing through to the water sector. Water for Victoria commits the water corporations to demonstrating a pathway to net-zero emissions and to pledge an interim emission reduction target to be achieved by 2025.” To achieve this commitment, in March 2018 the Minister for Water Lisa Neville established the water sector’s emissions reduction obligations for the State’s water corporations through a Statement of Obligations (Emission Reduction).

The Statement of Obligations requires water corporations to:

• Implement actions that reduce emissions resulting from water corporation operations; and
• Achieve emissions reduction efficiently, making full use of the time available to them to do so.

One option available is to self-generate offsets, which are defined as an offset that is created by, or on behalf of a corporation or Catchment Management Authority (CMA), and results from activity undertaken in Victoria. The ability to self-generate offsets in partnership with CMA’s presents opportunities to deliver carbon offsets which have co-benefits for catchment management including support for the implementation of Regional Catchment Strategies, improving biodiversity, improving water quality, reducing catchment erosion and providing numerous social benefits for local communities. To explore the feasibility of this partnership concept, a carbon sequestration analysis project was undertaken in the Port Phillip and Westernport CMA (PPWCMA) region in 2019. The project included analysis of the potential carbon yields, the costs for implementation and the process for registering and securing credits under three identified scenarios. The analysis findings are being used to inform a pilot program to establish new native vegetation on private land and public (excluding Crown Land) each year in the PPWCMA region to generate accredited carbon offsets and support the water corporations to become carbon neutral.The pilot program will assist water corporations in achieving genuine, cost-efficient emissions reductions, which reflect customer values and demonstrate accountability and compliance with the Statement of Obligations requirements.

The West Gippsland CMA (WGCMA), on behalf of the Victorian CMAs and water corporations, is seeking to apply the PPWCMA carbon sequestration analysis project methodology across the nine remaining Victorian CMA regions, to support a proposal for a Statewide program to establish hundreds of hectares of new native vegetation on private and public land (excluding Crown Land) each year to generate accredited carbon offsets, and support the water authorities to become carbon neutral. On behalf of all project partners, the WGCMA is seeking proposals from suitably qualified consultants to undertake a carbon sequestration analysis, which includes the potential carbon yields, the costs for implementation, and identifies and articulates complementary environmental and socio-economic benefits (co-benefits) which may result from the implementation of a carbon sequestration program.