Download to read offline
![Data requirements for annual reporting
South Pole to do MRV. Verification undertaken by independent auditors. Following
information* required annually:
Energy intake
The main parameter for the calculations of methane emissions from livestock is the energy
consumed through the feed [MJ/ kg]. Therefore, the daily dry matter intake (DMI) and fat
content of feed must be reported (i.e. daily DMI per cow indicated on feeding plans, fat level of
feed either <4% or 4-6% based on relevant regional sources).
Feed ingredient fed
Farmers must document that they have purchased the feed ingredient and maintained the
applicable dosage (e.g. for AGOLIN® 1g / cow and day) by providing relevant documentation (i.e.
receipts from stores or feedmills, signed feed records).
Number of animal days
To estimate how much methane was avoided, it is require to indicate how much livestock
has been fed with the feed ingredient on a daily basis according to animal categories
(i.e. the farmer reports that a herd of 100 Holstein cows was fed with AGOLIN® for one
year, which equals 36.500 days for this animal category).
*Please note that the extent of information needed differs depending on the applied standards and methodologies. The examples in this presentation are taken
14
from the VCS methodology VM0041.
Confidential. Do not distribute.](https://image.slidesharecdn.com/3-221011074035-e9ba5b33/75/3-Feed-Additives-Presentation-Feedworks-Conference-2022-compressed-pptx-14-2048.jpg)
![Data requirements for annual reporting
South Pole as will organize the monitoring, reporting and verification (MRV), necessary to issue and subsequently sell carbon
credits. The verification is undertaken by independent auditors to ensure objectivity. To participate in the project and benefits
from generated carbon credits, farmers need to report the following information* annually:
Energy intake
The main parameter for the calculations of methane emissions from livestock is the energy
consumed through the feed [MJ/ kg]. Therefore, the daily dry matter intake (DMI) and fat
content of feed must be reported (i.e. daily DMI per cow indicated on feeding plans, fat level of
feed either <4% or 4-6% based on relevant regional sources).
Feed ingredient fed
Farmers must document that they have purchased the feed ingredient and maintained the
applicable dosage (e.g. for AGOLIN® 1g / cow and day) by providing relevant documentation (i.e.
receipts from stores or feedmills, signed feed records).
Number of animal days
To estimate how much methane was avoided, it is require to indicate how much livestock
has been fed with the feed ingredient on a daily basis according to animal categories
(i.e. the farmer reports that a herd of 100 Holstein cows was fed with AGOLIN® for one
year, which equals 36.500 days for this animal category).
*Please note that the extent of information needed differs depending on the applied standards and methodologies. The examples in this presentation are taken
27
from the VCS methodology VM0041.
Confidential. Do not distribute.](https://image.slidesharecdn.com/3-221011074035-e9ba5b33/75/3-Feed-Additives-Presentation-Feedworks-Conference-2022-compressed-pptx-24-2048.jpg)
More Related Content
Similar to 3. Feed Additives - Presentation - Feedworks Conference 2022-compressed.pptx
More from 2damcreative
3. Feed Additives - Presentation - Feedworks Conference 2022-compressed.pptx
- 1. South Pole Australia Establishingemissions reduction projects using feed additives for methane abatement Dr Thomas Schröder - Head of Climate Action
- 2. Who we are Aprofit-for-purpose company founded in 2006 that enables corporates, capital markets, and the public sector to reduce their impact on climate change, while mitigating risk and creating value on their sustainability journeys. South Pole Climate Project Development We provide support along the entire climate project journey Concept Feasibility analysis Financial closure Implementation Operation Global impact, Local reach Expensive Client & Partner Network 1000+ employees in 36 offices: engineers, consultants, scientists, project developers, and finance experts 2
- 3. South Pole GlobalAgriculture Projects Regenerative Agriculture/ Carbon Removal Pilot Project United States CarboCert Agriculture Soils Revitalization Germany, Austria & Switzerland Climate Actions in Paulig’s Wheat Supply Chain Europe Soil Capital Regenerative Agriculture Project Belgium & France Barry Callebaut’s - Dairy Project Certification United States Climate Actions in Paulig’s Coffee Supply Chain Colombia, Nicaragua & Brazil UFA - voluntary CO2 compensation Switzerland Kayong Utara Palm Oil Plantation Project Indonesia Mooh - Feed additives project Switzerland Chocolats Halba Cacao Agroforestry Insetting Ecuador & Honduras CPC Beef Cattle Herd Management Project Australia L'Oréal Peatland Rehabilitation Insetting Project Indonesia Multicountry Biochar Grouped Project - CPA 1 - LignoCarbon Switzerland Nestlé Latin America tree planting project Colombia, Honduras & Nicaragua CPC Wrotham Park Fire Management Project Australia Climate Actions in East West Tea Company Global Mainoru Fire Management Project Australia Nestlé Tree Planting Feasibility Study Brazil & Mexico Upper Murray Landcare Network - Demonstration Carbon Farming Australia Mt. Mulgrave Fire Management Project Australia At own risk project Consultancy/at own risk project Consultancy project Consultancy/project development 3
- 4. Agriculture emissions inAustralia Grazing beef 44% 1. 15% of Australia’s emissions (2019) Sheep Dairy 2. 76.5 MtCO2e (down from 86.2 MtCO2e 18% (2005) 10% 3. Projected to reach 82 million MtCO2e in Fuel combustion 2030 9% Fertiliser and lime use 4. Main factor: livestock numbers 7% 5. Enteric fermentation - second largest source of global emissions from livestock supply chains - approximately 40% of total emissions. Cattle emit 77% of all enteric methane (Gerber et al., 2013). Crops 5% Grain-fed beef 3% Animal emissions Pigs Non-animal emissions 2% Other animals 1% 0 10 20 30 40 Emissions (million tonnes) 4 Source: Grattan Institute
- 5. How can feedadditives reduce emissions? Methane: potent greenhouse gas released by ruminants. Global warming potential 28 times higher than carbon dioxide over 100 years Ruminants release methane by 1. burping from the rumen 2. exhalation 3. hindgut gas Feed additives can reduce the amount of methane produced via 2 different modes of action: ● ● Rumen fermentation modifiers Enzyme blockers 5
- 6. Possible co-benefits of feedingredients Increased feed efficiency and productivity Besides emission reductions, feed ingredients can have various co-benefits for the farmer and the animals, depending on the applied product. Better animal health and fertility Nutrition Confidential. Do not distribute.
- 7. Selection of availabletechnologies Overview of some available feed additives ER Potential (%) Milk yield increase (%) Co-benefits Considerations ● ● ● Improved feed efficiency Increased milk fat and protein Lower ammonia waste indicators Agolin Ruminant ● Limited CH4 reduction potential Positive: only product with data available for PD 11-13% 3.5% - 10% ● (Rumen modifier) ● High dose may present performance and health issues in dairy cattle and result in decreased DMI and milk yield ● Environmental benefits at the production stage FCE benefits High success in high-fibre diet in sheep Seaweed - asparagopsis 30-90% (depending on dosage and application) ● ● N/A (Enzyme blockers) ● Challenge of bromoform uptake ● High emission reduction potential Chemical product that needs to be authorised by government, hence, safe to use ● Multiple applications per day needed Quickly metabolised No production gain and might decrease effectiveness 30 - 75% beef 20 - 30% grazing or dairy ● 3NOP (Enzyme blockers) N/A ● ● 7
- 8. Carbon credits ≡1 tonne of CO e being avoided or removed from the atmosphere. 2 One (1) carbon credit Business Opportunity: Carbon credits flow With feed ingredients, less methane is released by cows CH4 CH4 CH 4 Ruminating cows release about 100kg* of CH 4 per head/year The revenue flows back to the farmers Finance the project development, Carbon compensation offered through carbon credits CH 4 CH4 CH 4 CH4 including the feed ingredient CH4 CH4 *IPCC, Flachowsky et al. 2008 The voluntary buyers pay for the carbon credits. 8 Confidential. Do not distribute.
- 9. Who participates inthe projects? Feed ingredient producer South Pole Project partner Livestock owner For example: Role: Role: Role: Role: ● ● Provides academic proof of ER potential Delivers GHG- ● ● ● Assess project feasibility Register project Annual MRV Trading carbon credits ● Aggregate livestock owners as project participants Act as project owner with the carbon standard ● ● ● Feeding the additive to their animals Emissions reduction happens here Reporting and data requirements, e.g, dosage reducing feed ● additive to the feed provider/distributor (e.g. feed mills, cooperatives) 9 Confidential. Do not distribute.
- 10. Project Registration Steps Overviewof key steps and documentation for VCS project Registration & Issuance Key Project Development Steps Project Design Document (PDD) Project Validation VVB* Project Registration Monitoring Period Verification Credit Issuance VVB* *Validation/Verification Body (VVB): An organization approved by Verra to act as a validation/verification body. Costs of project development vary depending on scale and scope of the project. South Pole as a project developer works on a commission basis 10
- 11. International methods Main eligibilitycriteria of most relevant carbon methods VM0041 - Reduction of Enteric Methane Emissions from Ruminants through the use of feed ingredients Reducing Methane Emissions from Enteric Fermentation in Dairy Cows through Application of Feed Supplements Methodology Standard VCS GS ● ● ● ● Additive approved for animal use Demonstrated efficacy ● ● Dairy farms, producing milk for at least three years Milk yield must not drop below baseline yield at same or lower energy input Main Eligibility Criteria On-farm consumption must be traced Additive won’t increase methane in manure ● The project activity is not mandated by law Crediting periods 3x7 years or 10 year fixed 3x5 years ● ● Emissions if livestock operations continue business as usual practices ● Average activity and emissions over at least 3 continuous years, ending 2 years or less, before project activities start Baseline If there is no data, a control group of animals can be used as a baseline, while running the project 11
- 12. Australian methods Main eligibilitycriteria of most relevant carbon methods Reducing greenhouse gas emissions by feeding dietary additives to milking Livestock feed additive working group Methodology Standard ERF ERF ● Must be located within Australia ● South Pole is a member of the feed additive taskforce for developing a new method under the Clean Energy Regulator ● ● ● Dairy farm where milking cows are pasture grazed for at least 9 months each year. Main Eligibility Criteria Fat in diet must be less than 70 grams of fat per kilogram of dry matter intake in any season. Very limited set of eligible feed additives ● ● Australia specific method Includes farmers, supplement producers, academics, support bodies and service providers; ● ● Method which better meets needs of all parties. Method should be more flexible, practical, include more feed additives and allow for wider use For beef and dairy cattle and other ruminants Crediting periods 7 years Baseline Three most recent years before the start of the project ● 12
- 13. Data requirements forinitial assessment Technical assessment to analyse carbon credits potential. Following information required*: Project setup Project setup details including geographical scope (country/ region), animal categories to be included (cattle, dairy cows, etc.), business as usual (BAU) details before project implementation, coordination and information exchange possibilities with farmers and envisioned carbon claims (offsetting vs. value chain valorisation). Feed ingredient fed Feed ingredient that will be used for the project, including government approval and peer- reviewed evidence outlining efficacy in reducing methane (if available to the project partner). Project implementation Feeding management plan in the BAU and project scenario, indicating a first estimation of the energy intake (daily dry matter intake (DMI) and fat content of feed) as well as the number of animals involved over the first crediting period of seven years (scaling plan). *Please note that the extent of information needed differs depending on the applied standards and methodologies. The examples in this presentation are taken 13 from the VCS methodology VM0041. Confidential. Do not distribute.
- 14. Data requirements forannual reporting South Pole to do MRV. Verification undertaken by independent auditors. Following information* required annually: Energy intake The main parameter for the calculations of methane emissions from livestock is the energy consumed through the feed [MJ/ kg]. Therefore, the daily dry matter intake (DMI) and fat content of feed must be reported (i.e. daily DMI per cow indicated on feeding plans, fat level of feed either <4% or 4-6% based on relevant regional sources). Feed ingredient fed Farmers must document that they have purchased the feed ingredient and maintained the applicable dosage (e.g. for AGOLIN® 1g / cow and day) by providing relevant documentation (i.e. receipts from stores or feedmills, signed feed records). Number of animal days To estimate how much methane was avoided, it is require to indicate how much livestock has been fed with the feed ingredient on a daily basis according to animal categories (i.e. the farmer reports that a herd of 100 Holstein cows was fed with AGOLIN® for one year, which equals 36.500 days for this animal category). *Please note that the extent of information needed differs depending on the applied standards and methodologies. The examples in this presentation are taken 14 from the VCS methodology VM0041. Confidential. Do not distribute.
- 15. South Pole’s experiencein feed additives Currently developing 3 feed additive projects Projects under development Advisory and assessments 15
- 16. Your Contact Here tohelp you along your carbon farming project journey Dr Thomas Schroder Head of Climate Action t.schroder@southpole.com Sydney · 0405 03 80 58 Interested? Contact us for a free feasibility assessment of your dairy farm / cattle operation 16
- 17. Executive Summary Who weare A profit-for-purpose company founded in 2006 that enable corporates, capital markets, and the public sector to reduce their impacts on climate change, while mitigating risk and creating value on their sustainability journeys. South Pole Climate Solutions Global Impact - Local Reach Support along the entire corporate sustainability journey Our staff of 600+ employees in over 19 offices around the world includes engineers, consultants, scientists, project developers, and finance experts. Footprinting to measure climate impacts Renewable energy Planning and sourcing Climate Risk Strategic Advisory Targets, and goal- setting Carbon credits Planning and sourcing Assessments and planning for corporate resiliency Climate investments Dedicated funds and purchase facilities 20 Confidential. Do not distribute.
- 18. Our ecosystem of clients & partners 21 Confidential.Do not distribute.
- 19. The opportunity Reduce emissionsof enteric fermentation Agriculture accounts for 10% of global annual GHG emissions and livestock supply chains emit an estimated total of 8.1 gigatonnes carbon dioxide equivalent (CO e) a 2 year. */** Enteric fermentation (i.e. methane generated during the digestive process of ruminants) contributes about 3.5 gigatonnes CO e, which corresponds to 43% of the 2 livestock sector’s emissions.* Feed ingredients, including feed additives, offer farmers the opportunity to profit from generated carbon credits through the reduction of enteric fermentation as well as additional co-benefits. Maintaining sustainable livestock farming can help both mitigate and adapt to climate change. 22 * FAO 2021, ** McKinsey 2020, Confidential. Do not distribute.
- 20. Climate action credits Business Opportunity:Carbon credits flow Ruminating cows release about 100kg* of CH 4 per head/year CH4 *IPCC, Flachowsky et al. 2008 CH4 CH4 CH4 CH4 CH4 ≡ 1 tonne of CO e being avoided or removed from the atmosphere. 2 With feed ingredients, less methane is released by cows One (1) carbon credit CH4 CH4 CH4 Carbon credits are tradable certificates that result from specific emission reduction activities (e.g., reduction of methane emitted by cows). The revenue flows back to the farmers Finance the project Carbon compensation offered through carbon credits development, including the feed ingredient A carbon credit is a certificate can be bought by any public or private organisation to compensate for their own emissions. Additionally, by trading certificates on carbon markets, the generated income can help finance climate projects. The voluntary buyers pay for the carbon credits. 23 Confidential. Do not distribute.
- 21. Possible co-benefits offeed ingredients Besides emission reductions, feed ingredients can have various co-benefits for the farmer and the animals, depending on the applied product. Increased feed efficiency and productivity Animals need energy for outputs, e.g. milk production. This energy is provided by the feed intake. Some feed ingredients increase the feed efficiency (e.g. the same milk yield can be achieved with less feed input) or can increase the productivity (e.g. more milk yield is achieved with the same feed input) For some feed ingredients, studies show an increase the overall animal health as well as increased fertility (e.g. better results with less insemination attempts). Better animal health and fertility Some feed ingredients have nutritional benefits, such as increased protein and nitrogen availability. Nutrition 24 Confidential. Do not distribute.
- 22. Feed additive example: AGOLIN®RUMINANT AGOLIN® RUMINANT is a blend of food grade plant actives (essential oils) designed to optimize feed intake, animal health and performance as well as GHG production in ruminants. As a high-level estimation, feeding 10 cows with AGOLIN® for one year (365 days) has the potential Free flowing powder or water dispersible liquid with pleasant smell; to reduce methane of ~4 tCO 2 e, which corresponds Recommended dosage: 1 g / cow / day; Organic version is also available (AGOLIN® NATURU); In line with the feed legislation of EU, Japan, USA and others; to 4 carbon credits. All active compounds are listed and accepted by EFSA and JECFA*; GMO-free; No influence on milk composition and taste. 25 Confidential. Do not distribute. * Joint Expert FAO/WHO Committee on Food Additives
- 23. Data requirements forinitial assessment As a starting point, South Pole will perform a technical assessment to analyse carbon credits potential. To participate in the project and benefits from generated carbon credits, project partners need to provide the following information*: Project setup Project setup details including geographical scope (country/ region), animal categories to be included (cattle, dairy cows, etc.), business as usual (BAU) details before project implementation, coordination and information exchange possibilities with farmers and envisioned carbon claims (offsetting vs. value chain valorisation). Feed ingredient fed Feed ingredient that will be used for the project, including government approval and peer- reviewed evidence outlining efficacy in reducing methane (if available to the project partner). Project implementation Feeding management plan in the BAU and project scenario, indicating a first estimation of the energy intake (daily dry matter intake (DMI) and fat content of feed) as well as the number of animals involved over the first crediting period of seven years (scaling plan). *Please note that the extent of information needed differs depending on the applied standards and methodologies. The examples in this presentation are taken 26 from the VCS methodology VM0041. Confidential. Do not distribute.
- 24. Data requirements forannual reporting South Pole as will organize the monitoring, reporting and verification (MRV), necessary to issue and subsequently sell carbon credits. The verification is undertaken by independent auditors to ensure objectivity. To participate in the project and benefits from generated carbon credits, farmers need to report the following information* annually: Energy intake The main parameter for the calculations of methane emissions from livestock is the energy consumed through the feed [MJ/ kg]. Therefore, the daily dry matter intake (DMI) and fat content of feed must be reported (i.e. daily DMI per cow indicated on feeding plans, fat level of feed either <4% or 4-6% based on relevant regional sources). Feed ingredient fed Farmers must document that they have purchased the feed ingredient and maintained the applicable dosage (e.g. for AGOLIN® 1g / cow and day) by providing relevant documentation (i.e. receipts from stores or feedmills, signed feed records). Number of animal days To estimate how much methane was avoided, it is require to indicate how much livestock has been fed with the feed ingredient on a daily basis according to animal categories (i.e. the farmer reports that a herd of 100 Holstein cows was fed with AGOLIN® for one year, which equals 36.500 days for this animal category). *Please note that the extent of information needed differs depending on the applied standards and methodologies. The examples in this presentation are taken 27 from the VCS methodology VM0041. Confidential. Do not distribute.
- 25. Steps towards collaboration Projectdevelopment process Concept Initial Preliminary Assessment Financial closure Implementation Operation Outcome: Outcome: Outcome: The climate action program is developed and registered and eligible to generate carbon credits. Outcome: Emission reductions are monitored, All parties share a common vision and understanding of the benefits of implementing a climate action joint project using a feed ingredient. Outcome: Estimation of the climate action potential of the feed ingredient within the targeted Financial contracts are closed between the participants of the programme, including the sale and delivery of the feed ingredient, carbon credits ownership and contractual relation. verified and reported. Generated carbon credits are sold to reimburse livestock operations. The feed ingredient is distributed to the farmers and fed to the livestock. participants. Ongoing communication and reporting. The respective requirements and roles of the partners are aligned. 28 Confidential. Do not distribute.
- 26. South Pole’s expertise SouthPole’s interdisciplinary and globally distributed team of experts can provide comprehensive solutions to achieve climate goals. ● South Pole draws on over a decade’s worth of experience designing, developing, implementing, operating, monitoring and verifying the impacts of international carbon projects. South Pole has a deep understanding of the carbon market, its dynamics and its different actors. South Pole has sound theoretical and practical knowledge of carbon offsetting projects and has been the leading developer of international offsetting projects for the past 10 years. ● ● South Pole develops and supports projects across the world, including regenerative agriculture projects, renewable energy, sustainable transport, waste management and forestry projects. We manage all financial and operational aspects, delivering measurable impacts and providing end-to-end carbon asset management and valorisation solutions for all types of projects. South Pole has an extensive ecosystem of clients and partners including private sector actors, public institutions, NGOs and humanitarian organisations. In addition, South Pole works closely with voluntary carbon standards in the development of methodologies. References for feed ingredient projects ● ● ● Mooh Cooperative grouped project (Switzerland), under registration with Verra (VM0041). More information available here. Barry Callebaut feed additive grouped project (US), under registration with Verra (VM0041). More information available here. UFA Swiss Climate Feed (Switzerland), registered under CSA (ISO). More information available here. 29 Confidential. Do not distribute.