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HELM TALKS: FARMING Lecture 4

Dieter Helm's lecture series on farming.

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HELM TALKS: FARMING Lecture 4

  1. 1. THEMES • Net zero and what it means • Agricultural emissions • Natural carbon sequestration • Carbon taxes • Carbon offset payments • Normalising carbon farming
  2. 2. NET ZERO WHAT IT MEANS • A unilateral target – but what about trade? • The CCC are wrong to claim that when we get to zero emissions, we will no longer cause any climate change. • CCC Net Zero Report 2019 “By reducing emissions produced in the UK to zero, we also end our contribution to rising global temperatures”. • The scale of the challenge • What land use will have to contribute
  3. 3. AGRICULTURAL EMISSIONS • 0.6%GDP • 12% emissions But excludes; • peat • Soils • Biomass loss So real carbon emissions are more like 15 % ++ Ammonia, red diesel, heating, feed, pesticides, etc etc etc
  4. 4. NATURAL CARBON SEQUESTRATION Emissions Emissions
  5. 5. CARBON TAXES • Current carbon prices – carbon floor price, EUETS • Offset contract values • Price needed to meet net zero • Carbon border tax
  6. 6. CARBON OFFSET PAYMENTS • The offset concept • Additional investment vs. business as usual • Bilateral contracts • Carbon offset markets • Taxation & quality assurance
  7. 7. NORMALISING CARBON FARMING • Future agriculture has multiple outputs • Balance sheet is carbon storage assets • Capital maintenance for carbon crops • Carbon offsets one of portfolio of investment options

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