Louisa Kiely: Regional Carbon Trading Models


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The earliest breakthrough in soil carbon trading has occurred in regional Australia. Louisa Kiely from Carbon Farmers of Australia explains how they work.

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Louisa Kiely: Regional Carbon Trading Models

  1. 1. Regional Carbon Trading Model A Voluntary System Louisa Kiely Carbon Farmers of Australia
  2. 2. Carbon Farming Expo & Conference Mudgee 17-18 November 2007
  3. 3. Soil Carbon On The National Agenda “ I am hearing more and more about the possible potential of enhancing the carbon stored in our soils… [The Government will] investigate how better soil management can be part of Australia’s response to climate change.” PM Kevin Rudd 4 March 2008
  4. 4. UN FAO calls for Soil Carbon Credits "It is essential to … increase the resilience of present food production systems ... We urge governments to create opportunities to enable the world's smallholder farmers …. to participate in , and benefit from financial mechanisms and investment flows to support climate change adaptation, mitigation and technology development…” 181 countries The High-Level Conference on World Food Security: the Challenges of Climate Change and Bioenergy, convened by UN Food and Agriculture Organisation (FAO), 3-5 June, 2008
  5. 5. “ Soil Carbon must be in!” “ Australia is well positioned to further increase carbon dioxide removal by soil, due to the sheer size of its land mass and the ability of its farming sector to adopt new management practices . Professor Ross Garnaut FINAL REPORT
  6. 6. “ Soil Carbon - DON’T WAIT!” “ The mitigation gains are potentially so large that it is important for Australia to commence work on program design and implementation even before the issues of coverage , national and international, are fully resolved.” Professor Ross Garnaut FINAL REPORT
  7. 7. STOP PRESS TIM GETS IT! "Atmospheric Cleansing” "What plants do is pull carbon dioxide from the atmosphere and sequester that carbon dioxide in measurable amounts in the biosphere.”
  8. 8. “ The technologies then to do that are very straight forward… Holistic management, for example, is practised over about 10 million acres globally… demonstrably increased carbon content in soils by up to three percent. And they give you better productivity, better soil moisture retention, better biodiversity protection, and these approaches are not expensive. " “ Were we able to increase carbon content of soils in the world’s rangelands by a mere two percent we could draw down hundreds of gigatonnes of carbon dioxide to sequester in those rangelands.” “ Atmospheric Cleansing”
  9. 9. “ In my view, the global carbon trading scheme is absolutely necessary in order to deal with this crisis.” Carbon Trading “Absolutely Necessary”
  10. 10. UN Food & Agriculture Organisation Conservation Agriculture Carbon Offset Consultation Purdue University, West Lafayette, Indiana, 28-30 October, 2008 Mexico Columbia Brazil India Australia Ontario Manitoba Denmark British Columbia China America South Africa Germany Alberta Saskatchewan
  11. 11. Conservation Agriculture Carbon Offset Consultation Official Communique
  12. 12. Official Communique
  13. 13. Conservation Agriculture Carbon Offset Consultation Official Communique Official Communique
  14. 14. Official Communique
  15. 15. Official Communique
  16. 16. SOIL’S UNIQUE ROLE To Hold the Line? To Aborb the Legacy Load.
  17. 18. If we stopped emitting CO2 today?
  18. 19. “ Legacy Load” of CO2
  19. 20. If we stopped emitting today… <ul><li>“ The carbon dioxide that’s in our atmosphere today – even if we were to stop emitting it tomorrow – would live for many decades, centuries and beyond...” </li></ul>Chair of IPCC* Rajendra Pachauri *Intergovernmental Panel on Climate Change Sir David King Britain’s Chief Scientist Dr Susan Solomon U.S. National Oceanic and Atmospheric Administration Professor Ross Garnaut February 2008 AGO March 2005
  20. 21. Neither “ Clean Coal” Nor Nuclear Power Nor Solar Energy Nor Wind Turbines Nor Lightbulbs can remove the “ Legacy Load” of CO2.
  22. 23. 7 planets covered in forest Would sequester the CO2 already in the atmosphere
  23. 26. Increase Soil Carbon Improved Soil Structure Better Water Use Reduced Salination Soil Fertility Biodiversity Healthy Profit Less Erosion The Benefits of Soil Carbon Credits Healthy ecology Soil Carbon Credits Healthy Farm Families Stronger Rural Communities
  24. 27. Carbon Offsets <ul><li>Two Markets: </li></ul><ul><ul><li>Compliance </li></ul></ul><ul><ul><li>Voluntary </li></ul></ul><ul><li>Compliance </li></ul><ul><ul><li>Cap & Trade </li></ul></ul><ul><ul><li>Baseline & Credit </li></ul></ul>
  25. 28. Compliance Market <ul><li>2006 - US$31 billion </li></ul><ul><li>2007 - US$64 billion </li></ul><ul><li>Doubled in value </li></ul><ul><li>Voluntary Market tripled! </li></ul><ul><ul><li>(But still small) </li></ul></ul>
  26. 29. Voluntary Market <ul><li>2006 - US$97 million </li></ul><ul><li>2007 - US$331 million </li></ul><ul><li>65 million tonnes CO2e </li></ul><ul><ul><ul><li>165% increase on 2006 </li></ul></ul></ul><ul><li>“ Over-The-Counter” sales up 300% </li></ul><ul><li>Average Price </li></ul><ul><li>2006 - US$4 </li></ul><ul><li>2007 - US$6 </li></ul><ul><li>Prices ranged from US$1.80/t to US$300/t </li></ul>
  27. 30. Voluntary Market <ul><li>Over-The-Counter -Popular Product: </li></ul><ul><ul><li>Energy efficiency </li></ul></ul><ul><ul><li>Renewable energy </li></ul></ul><ul><ul><li>Methane destruction </li></ul></ul><ul><ul><li>Forestry/’Land Based Projects” </li></ul></ul><ul><li>“ Buyers purchase offsets that most closely resemble those of the compliance market rather than indulge in the sort of experimentation and innovation that many believe the markets offer”. </li></ul><ul><ul><ul><ul><ul><li>State of the Voluntary Carbon Markets, Ecosystem Marketplace and New Carbon Finance </li></ul></ul></ul></ul></ul>
  28. 31. Benefits of Voluntary Market <ul><li>1. Possibility of Broad Participation </li></ul><ul><ul><li>enables those in unregulated sectors or countries that have not ratified Kyoto to offset their emissions. </li></ul></ul><ul><li>2. Preparation for Participation </li></ul><ul><li>- enables companies to gain experience with carbon inventories, emissions reductions and carbon markets.. </li></ul><ul><li>3. Innovation and Experimentation </li></ul><ul><li>-project developers are more flexible to implement projects that might otherwise not be viable (e.g. projects that are too small or too disaggregated). </li></ul><ul><li>4. Corporate Goodwill </li></ul><ul><li>-corporations can benefit from the positive public relations associated with the voluntary reduction of emissions. </li></ul>
  29. 32. Regional Business Model for Carbon Trading Community Wind Farms Biofuels Big Emitters Recycled Biomass Community Education/ Involvement Employment Sustainable Farming Restored Farm Ecology
  30. 33. Pathway to Regional Sustainability <ul><li>DESIRED OUTCOMES </li></ul><ul><li>Initiate a Carbon Market Pilot in Region </li></ul><ul><li>Improve understanding of carbon/climate issues in Region. </li></ul><ul><li>Integrate carbon sequestration research relevant to Region. </li></ul>
  31. 34. Principles <ul><li>Climate change demands new approaches </li></ul><ul><li>Market instruments are needed to bridge gap between long-term technology solutions and current run away emissions. </li></ul><ul><li>All citizens wish to be part of the solution. </li></ul><ul><li>Investment is needed to guide the solution. </li></ul>
  32. 35. Knowledge Needs <ul><li>Identify, verify and apply GHG measurement and technologies - re soils and methane/nitrous oxide </li></ul><ul><li>Farmers provide technical input regarding agricultural practices used in the CMA region to assist in developing soil C protocols. </li></ul>
  33. 36. How to’s <ul><li>Climate change overview </li></ul><ul><li>CMA wide carbon baseline levels </li></ul><ul><li>Carbon sequestration practices and emissions related activities </li></ul><ul><li>Measuring and modeling net carbon sequestration - calculators </li></ul><ul><li>Carbon sequestration markets </li></ul><ul><li>Calculate economic benefits </li></ul>
  34. 37. Public Meeting Agenda <ul><li>History of the District </li></ul><ul><li>Success Stories from within the District </li></ul><ul><li>Maps of Resource Concerns </li></ul><ul><li>Trends in land use and condition of the resources </li></ul><ul><li>Public input to what issues they see as most critical to the district </li></ul>
  35. 39. Visioning The Ideal <ul><li>Your vision of what your district could look like </li></ul><ul><li>The desired condition of your district </li></ul><ul><li>The IDEAL state of the resources in your district </li></ul>
  36. 40. Objectives <ul><li>Save the Family Farm </li></ul><ul><li>Maintain and Enhance Cropland Productivity </li></ul><ul><li>Protect Farmland from Conversion to Non-agricultural Uses </li></ul><ul><li>Protect Water Resources </li></ul><ul><li>Maintain Regional success in face of climate change by aiming for self-sufficency </li></ul>
  37. 41. Collaborative Research <ul><li>These efforts need to be supported </li></ul><ul><li>Baseline scores by catchment </li></ul><ul><li>Potential carbon farming methods </li></ul><ul><li>Protocols and standards </li></ul><ul><li>Verification strategies. </li></ul><ul><li>Refine models/calculators </li></ul>
  38. 42. Other support <ul><li>Farmer outreach. Information on: </li></ul><ul><li>Known carbon farming methods </li></ul><ul><li>Innovation thinking </li></ul><ul><li>Market knowledge and information. </li></ul>
  39. 43. Outcomes <ul><li>Carbon registry - track all carbon sequestered by CMA area </li></ul><ul><li>Lead to a ‘carbon neutral’ CMA. </li></ul><ul><li>Template for others to follow. </li></ul>
  40. 44. Way forward for companies <ul><li>Commit to levels of reduction to protect environment and protect shareholder liability. </li></ul><ul><li>Community support leads to better labour market, long term investment in climate stablization with best win/win solution for Regional Australia </li></ul>
  41. 45. Options to Achieve <ul><li>Fund credits. Invest in climate change and investment fund via ‘provisional carbon credits’. (PCC) </li></ul><ul><li>Part of credit is returned to farmer, part is invested back into CMA based climate mitigation technologies and programs </li></ul>
  42. 46. Possible offsets <ul><li>Soil carbon </li></ul><ul><li>Biofuel </li></ul><ul><li>Energy Efficiency </li></ul><ul><li>Renewable Energy </li></ul>
  43. 47. Project Eligibility <ul><li>Start date </li></ul><ul><li>Credit duration period </li></ul><ul><li>Real, demonstrable, quantifiable </li></ul><ul><li>Not required by law </li></ul><ul><li>Ownership </li></ul><ul><li>Counted once </li></ul><ul><li>Verified by third party. </li></ul><ul><li>Occur </li></ul>
  44. 48. Agriculture Carbon Pollution Reduction Scheme Pilot <ul><li>Engage a group of 30 farmers 3years </li></ul><ul><li>Train in Carbon Farming </li></ul><ul><li>Set Emission reduction targets. And caps </li></ul><ul><li>On-farm baseline measurements. Emissions and sequestration </li></ul><ul><li>Undertake Carbon Farming </li></ul><ul><li>Baseline again </li></ul><ul><li>Engage local buyers for ‘provisional’ credits to further on-farm research </li></ul>
  45. 49. Outcomes <ul><li>Develop protocols, templates and Standards concurrently. Share with others </li></ul><ul><li>Develop education modules. </li></ul><ul><li>Farmers learn climate change skills </li></ul><ul><li>Develop soil carbon calculator/test against modelling </li></ul><ul><li>Develop skills in MMV. </li></ul><ul><li>‘ Provisional’ soil carbon credits traded on voluntary market. </li></ul>
  46. 50. International collaboration <ul><li>Liaise with International Communities of Practice - (CoP’s) sanctioned by FAO </li></ul><ul><li>Liaise with Canada, USA. </li></ul><ul><li>Will ensure International compatibility for soil carbon credits in next round of Kyoto. </li></ul>
  47. 51. Future Farm
  48. 52. Next steps <ul><li>Strategy meetings in CMA area </li></ul><ul><li>Meet with Development boards </li></ul><ul><li>Companies </li></ul><ul><li>Farmers </li></ul><ul><li>Fundraising </li></ul><ul><li>Please see me for more details </li></ul>
  49. 53. Practical Carbon Farming Advice <ul><li>Whole Farm Carbon Planning </li></ul><ul><li>Access All Expert Practioners </li></ul><ul><li>Carbon Communications & Marketing </li></ul><ul><li>Climate Change in Agriculture </li></ul><ul><li>“ You single-handedly barnstormed the issue onto the National agenda!” </li></ul><ul><ul><li>Matt Cawood, Senior Writer, The Land </li></ul></ul><ul><ul><li>www. carboncoalition .com.au </li></ul></ul><ul><ul><li>http: //carboncoalitionoz . blogspot .com </li></ul></ul>
  50. 54. [email_address]