Greens support for federal Labor's safeguard mechanism puts carbon farming at centre stage

The backing of Adam Bandt's party will now ensure the Albanese government's proposed changes to its "safeguard mechanism" will allow the biggest polluters to buy their way out of trouble - for the time being - by purchasing carbon credits produced by farmers.

Demand is expected to increase for the humble ACCU - representing one tonne of carbon dioxide in the atmosphere or about 3.5t of soil organic carbon - and experts in this space predict its price to rise in line with other parts of the world, notably Europe.

Currently a tonne of CO2 in the European market brings about Euro 55 or AUS$90 or more than double the Australian units value.

Part of the upgraded policy mechanism will include improvements to the integrity of ACCUs, with a freeze on Human Induced Regeneration offsets - the most valuable type, currently trading $1.25 above the $37 spot price - until an independent audit is conducted.

Already the federal government has capped any future trade of ACCUs at $75 to limit price runaway until things settle down.

Farmers for Climate Action say they also welcome a cap on how much polluters can buy - with more than 30pc of emissions offset triggering a justification.

CEO Fiona Davis said the group, representing more than 7700 farmers across Australia, has previously pointed out the perils of unlimited carbon offsets taking over too much farmland.

"This agreement contains sensible measures and is a good start. The substance is in the execution and we'll be watching closely as this unfolds," Dr Davis said.

"The idea of having corporations justify their use of offsets for more than 30pc of their baseline is a good one. A review of offsets in 2026-27 by the Climate Change Authority is also welcome, and the key to both is in the implementation.

"Giving incentives to businesses who are willing to reduce their actual emissions is a logical step, especially as it reduces reliance on offsets.

Dr Davis referred to a review of the ACCU, ordered by the ACCC under the federal government when she said: "It's vital that all Chubb Review recommendations are implemented by the first of July to ensure the integrity of offsets.

However land managers need to enter the carbon market with their eyes wide open, insists one lawyer acting for agriculture while independent parties linked to government, like NSW Local Land Services, are stepping in to act as a broker between corporate giants and the humble cow cockie.

Director of the Mulloon Institute and partner at the Gadens law firm in Sydney, Matt Egerton-Warburton, warns farmers to enter carbon project contracts with their eyes wide open.

"These are 25 year contracts. Farmers have got to get third party advice and support before entering these arrangements.

"Carbon projects agreements can be one-sided. Farmers have to be careful. There are entrepreneurs out there that are offering contracts that are not in the long-term best interest of farmers," he said.

In particular he warned those entering the carbon trade to be mindful of clauses in contracts that stipulate all ACCUs go to the project developers with the promise of some income at the end for the farmer.

"Service providers are sophisticated and they have drafted complicated long form contracts for farmers to sign," he said noting the discovery of "some aggressive positions" within the contracts he has dealt with.

"Many clauses in these agreements are to the benefit of the service provider not the landholder," he said.

"While I respect their scientific and technical work, there's no magic in what carbon project developers are doing. They test for soil organic carbon; they submit an application to government, and they test the soil again at five year intervals.

"The magic occurs when the farmers rehydrate and rehabilitate their land."

Read more: Biosecurity battle continues after election.

Read more: Chubb Review paves new way of carbon trading.