Diversifying Rural Economies: Identifying Factors That Discourage Primary Producers from Engaging in Emerging Carbon and Environmental Offsetting Markets in Queensland, Australia

Commitments to carbon neutrality at both international and national levels have spurred the development of market-based mechanisms that incentivize low-carbon technologies while penalizing emissions-intensive activities. These policies have wide ranging impacts for the Australian agricultural sector, and associated rural communities, where the majority of carbon credits and biodiversity credits are sourced in Australia. Undeniably, the introduction of carbon and environmental markets has created the opportunity for an expansion and diversification of local, rural economies beyond a traditional agricultural base. However, there is much complexity for the agricultural sector to navigate as environmental markets intersect and compete with food and fiber livelihoods, and entrenched ideologies of rural identity and purpose. As carbon and environmental markets focused on primary producers have expanded rapidly, there is little understanding of the associated situated and relational impacts for farming households and rural communities. Nor has there been much work to identify the barriers to engagement. This study explores these tensions through qualitative research in Stanthorpe and Roma, Queensland, offering insights into the barriers and benefits of market engagement. The findings inform policy development aimed at balancing climate goals with agricultural sustainability and rural community resilience.