BY ALASTAIR HANDLEY
FACE-
OFF
What are thebenefitsof
carbonoffsets?
CARBON OFFSETS ARE DOUBLE
green—they help farmers measure the
impact of their agricultural sustainability
initiatives and make them money at the
same time. To date, more than 36 mil-
lion carbon credits worth well over $400
million have been generated in Alberta,
with $100 million-plus coming from the
agricultural sector.
Today, farmers are facing increasing
pressure to implement sustainable agri-
cultural practices. The 10 biggest food
companies in the world are promoting
sustainable agriculture. Wal-Mart, the
largest grocer in the world, is pushing the
agricultural sector to reduce greenhouse
gas (GHG) emissions. The United Nations
Food and Agriculture Organization is
seeking ways to feed nine billion people
by 2050 with the resources we currently
have. Sustainable agriculture is here to
stay, and farmers are going to come under
increasing pressure to deliver sustainably
grown food.
To do this, farmers must measure and
monitor the impacts of their practices.
Carbon credits provide a soft entry into the
demands that sustainability is going to put
on farmers, and they are the only mecha-
nism that pays farmers for their sustaina-
bility efforts. Work is currently underway
in a number of jurisdictions to develop
frameworks for water quality and habitat
conservation credits.
Environmentally speaking, offsets
provide private industry the needed time
to reduce GHG and transition into a
low-carbon economy. Private industry also
provides innovation and technology devel-
opment to spur economic growth.
Carbon offsets also provide incentives
for companies to take advantage of low-
er-cost opportunities to reduce emissions
in sectors not subject to an emissions
cap. This can deliver valuable ancillary
environmental and economic benefits,
including technology transfer among
developed and developing countries, job
development and local economic growth,
reductions in deforestation of tropical
forests, restoration of degraded forests and
adoption of sustainable agriculture and
forestry practices. Offsets also serve to
enhance awareness of GHG emissions and
their adverse consequences.
Finally, the true price of carbon is not
yet known and cannot be identified to
create a tax rate. Offset markets are critical
for price discovery, and to determine how
efficiently and effectively emissions reduc-
tion targets will be achieved.
When you look at offsets through an
economic lens, the benefits to the farmer
are significant. Companies are lining up
to buy your carbon credits. Following
harvest in late 2015, I had three buyers call
that wanted to commit to purchase every
credit that I could produce to the end of
2020. Simply put, there is a future revenue
stream for farmers who are able and will-
ing to participate in the market.
As an aggregator, our company’s focus
is to help Alberta grain farmers earn an
additional revenue stream through the
quantification and sale of their carbon
credits. We have been doing this since
2007 and have lived through the market’s
ups and downs as it has matured. I hear
from farmers who maximize the market
benefits, and also from those who say the
program isn’t worth their time.
When farmers tell me things like “it’s
too much work,” “I don’t like paperwork,”
“it’s not worth my time,” “I don’t believe
in climate change” or “you’re making all
of the money,” I realize that I am failing
in my job to inform these farmers about
the current carbon market and where it is
headed. A recent call I took from a farmer
in the “not worth my time” camp gave me
the opportunity to tell him that at $500 an
hour for his paperwork he was probably
making more than his lawyer. “I’ll stay
in the program,” he said. The market has
changed dramatically for the better since
2007 and expectations are that credits will
double in value by 2018. Paperwork is a
chore, but our paperwork pays.
Despite these numbers, there are always
going to be farmers who choose not to
participate in the program because they
don’t need the money or it’s not worth
their time. To them I say, “do it for the tax
deduction if you don’t want the cash.” Let
us generate and sell your credits. We will
then donate your credit revenue to a chari-
ty of your choice in your name.
Carbon credits are a bridge to a low
carbon economy. Farmers who are imple-
menting best practices in their fields are
helping to build this bridge. This effort in-
creases the credibility of Alberta to deliver
sustainably grown crops.
Alastair Handley is the founder and
president of Carbon Credit Solutions. His
company aggregates carbon for more than five
million acres of global farmland and has been
involved in Alberta’s offset market since 2006.
Winter
2016
Grains
West
42
