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WEST LAFAYETTE, Ind. — A relatively new incentive for good land stewardship is emerging and may provide additional revenue for conservation practices.
“This incentive is based on a market trading system for carbon dioxide,” said Lenny Farlee, Purdue Extension forester expert. “The incentive is there because individuals, companies, and organizations are voluntarily looking for ways to decrease their carbon dioxide emissions, or offset the emissions they cannot eliminate by purchasing credits from landowners whose conservation practices store carbon dioxide in plant material or the soil.”
The Chicago Climate Exchange (CCX) is the world’s first and North America’s only voluntary, legally binding rules-based greenhouse gas emission reduction and trading system.
Carbon dioxide emitters, such as utilities, manufacturers, or municipalities can join CCX and agree to reduce their emissions by a certain percentage from year to year, said Farlee. If they are unable to reduce their emissions by the agreed-upon amount, they may purchase offset carbon credits from entities that practice storing carbon dioxide.
Some land management practices recognized to sequester carbon dioxide include no-till or low-till agricultural systems, grassland planting, establishment and management of tree plantations, and managed forestlands.
For example, if a farmer does no-till farming he/she could contact an aggregator and CCX to work on the additional revenue from carbon credits.
“The amount of income from selling carbon credits depends on the capacity of management practices enrolled to sequester carbon and the market value of carbon dioxide,” said Farlee. “Many landowners in the Central Hardwood Region who have already installed these practices or plan to do so, may be eligible to take advantage of this new marketplace.”
Most landowners will need to use the services of an aggregator to register with the CCX to sell their accumulated carbon, because of the minimum trading quantities imposed by the exchange.
“This new area of opportunity is changing rapidly, with new programs and service providers entering the area regularly,” said Farlee.
This topic will be addressed at the 45th Farm Science Review on Sept. 18-20 at the
Molly Caren Agricultural Center in London, Ohio.
The review opens at 8 a.m. and closes at 5 p.m. on Sept. 18 and 19, and is from 8 a.m. to 4 p.m. Sept. 20. Tickets are $8 at the gate or $5 in advance if purchased at Ohio State Extension offices. Children 5 and younger are admitted free. The Molly Caren Agricultural Center is located approximately 154 miles from the Indiana State line on Interstate 70. More information is available online at http://fsr.osu.edu/.
elf/farlee.trees
Writer: Elizabeth Fritz, (765) 494-8402, elfritz@purdue.edu
Sources: Lenny Farlee, (765) 494-2153, lfarlee@purdue.edu
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