Growing Returns

Selected tag(s): American Carbon Registry

The market for grassland carbon credits is on the rise. Here’s why.

A new study from UC Davis found that “grasslands and rangelands are more resilient carbon sinks than forests in 21st century California.”

While forests remain vital to global climate mitigation efforts, the increasing frequency and severity of wildfires has heightened the need to explore additional carbon sinks in fire-prone regions. Grasslands lock carbon into the soil, and they don’t release it during wildfires.

Photo credit: Nicole Rosmarino, Executive Director of the Southern Plains Land Trust

It’s because of this resilient carbon-capturing power that grasslands and rangelands are essential to meeting climate goals. Unfortunately, these ecosystems are being converted into croplands at the highest rate in decades. Landowners converted 1.6 million acres of long-term grasslands – those that have existed for 20 years or more – into croplands between 2008 and 2012.

Record high land rental values make land conversion a compelling economic choice, but a new market opportunity may soon change this calculus. Read More »

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How agriculture can help drive a low-carbon economy

Reducing methane emissions from cows is a step in the right directionThe White House Council on Environmental Quality (CEQ) recently released an intriguing report on how the United States can transition to a low-carbon economy by 2050 while continuing economic growth. The report gives a starring role in this job to agricultural lands.

Mid-Century Strategy for Deep Decarbonization” outlines a 3-pronged strategy for reducing greenhouse gas emissions by 80 percent while accelerating job-creating innovation. Calling each strategy “critical,” CEQ first lists the familiar call to transition to renewable and low carbon forms of energy.

The second key strategy, however, is less often discussed: the potential of cropland and grassland soils, as well as forests, to store and sequester hundreds of millions of tons of CO2 annually. The report – informed by decades of scientific research – describes the opportunities to explore in this area. Read More »

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Why investments in agricultural carbon markets make good business sense

Farmers shaking handsOver the past decade, private investment in conservation has more than doubled, with sustainable forestry and agriculture investments as the main drivers of growth. This unprecedented expansion in “impact investing” or “conservation finance” has occurred as investors seek good returns that can also benefit the environment.  According to Credit Suisse, sustainable agriculture is particularly appealing to investors as it offers a wider array of risk mitigation approaches than sectors such as energy and transportation.

Yet despite this boom, there has been very little investment from private capital in emerging ecosystems markets, especially in the agricultural sector.

We’ve blogged before about the benefits growers – and the environment – realize from participating in agricultural carbon markets or habitat exchanges. But here’s why the private sector, food companies and retailers should invest in agricultural carbon markets. Read More »

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Agricultural carbon markets get yet another boost

farmIn the past three months, three new revenue opportunities have emerged for growers. In June, the first ever carbon offset protocol for crop-base agriculture in a cap-and-trade market was approved for U.S. rice growers by the California Air Resources Board (ARB). The “rice protocol” announcement was followed shortly after by approval of a voluntary grasslands protocol, which rewards farmers for avoiding the conversion of grasslands to cropland.

And now, USDA has demonstrated its interest in and support of another market-based approach for growers: increasing fertilizer use efficiency. Thanks to a new grant from the U.S. Department of Agriculture (USDA), EDF and partners will be helping almond and corn farmers reduce fertilizer runoff and nitrous oxide emissions, and earn greenhouse gas credits that can generate revenue.

Here’s what this project will entail: Read More »

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Grasslands protocol opens another carbon market for farmers

GrasslandsGrowers with grasslands on their property have a new reason to leave that land untouched.

On July 22, the Climate Action Reserve, a non-profit organization that creates offset standards and serves as one of the offset registries for California’s cap-and-trade program, approved a new protocol that rewards farmers for avoiding the conversion of grasslands to cropland.

The new “grasslands protocol” highlights a growing trend in agriculture: farmers being paid for reducing greenhouse gas emissions. Read More »

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How agriculture’s resilience to climate change benefits us all

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81 percent of Americans live in cities, but rely on rural areas for everyday needs.

Traditionally, governments haven’t factored farms and ranches into their climate mitigation and adaptation planning. Instead, the focus has mostly been on protecting urban communities. But that is all changing. At the National Adaptation Forum earlier this month in St. Louis, agriculture was top-of-mind in discussions about reducing emissions and building resilience to climate change.

That’s because in order to protect people, 81 percent of whom live in urban areas, we’ll need to protect what’s around where they live, too. It’s largely rural areas, like the farming town of 1,100 people where I grew up, whose working lands and farms provide valuable services to urban areas. These services include food security, flood and drought protection, recreation and water storage. Agriculture can also play (and is already playing) a big role in reducing greenhouse gas emissions.

The more resilient we can make agriculture, the better off we’ll all be. Read More »

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Spreading compost on the range can earn ranchers new revenue

Improving the soil helps ranchers and the climate. © rui vale sousa / Shutterstock Images.

Improving the soil helps ranchers and the climate. © rui vale sousa / Shutterstock Images.

Rangeland ecosystems cover approximately one third of the land area in the United States and half the land area of California. What if that vast domain could be utilized to combat climate change, and ranchers could get paid for land management practices that keep more carbon in the soil and enhance production?

That’s the direction we’re going, thanks to a new carbon accounting standard approved today by the American Carbon Registry. The new protocol allows ranchers who reduce their greenhouse gas footprint by applying compost to their fields to earn credits that can be traded on the voluntary carbon market.

Climate benefits

The standard is supported by research conducted by the Silver Lab at the University of California, Berkeley, which shows that applying a half inch of compost to rangeland soils removes greenhouse gases from the atmosphere at the rate of half a ton per acre each year.

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Fertilizer-efficiency credits seed the market for agricultural offsets

tractorFertilizer use is key to increasing the productivity necessary for farms to feed rising populations.  However, not using the right amount in the right place at the right time is one of the biggest threats to a stable climate. Nitrogen fertilizer not used by crops emits nitrous oxide, a heat-trapping gas 300 times more powerful than carbon dioxide. It also contaminates water supplies, causes algae blooms downstream and erodes soil health.

So, it was welcome news last week when the first greenhouse gas credits for fertilizer efficiency made their debut in the North American carbon market.

Read More »

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