FEATURE The Wild, Wild West of Grazing Carbon Markets By Laura Handke
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n what feels like the wild, wild west of opportunity, carbon markets are dueling it out for a share of the carbon-capture pie. And while competition is typically a good thing for those in the position to capitalize on the demand, the uncertainty surrounding carbon market opportunities has most farmers and ranchers looking for more information. Lora Wright, director of sustainable animal proteins for Where Food Comes From, Inc., an independent thirdparty verification company, shared in a session at the Cattle Industry Convention Cattlemen’s College the findings of a study aimed at equipping farmers and ranchers with information pertinent to grazing carbon markets. “I see carbon markets as a potential for producers to get involved, calm the storm and find a pathway to additional incentives for doing what farmers and ranchers do best, which is caring for the land,” Wright told attendees. While grazing may not currently be accounted for in all carbon market opportunities, a few recognize the benefit grazing provides in the quest for carbon sequestration—and they are willing to pay for it. A condensed list of management schemes companies are willing to pay for include: •
Prescribed/planned grazing (e.g., rotational grazing)
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Integrated ranch management planning
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Stocking rate optimization
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Beneficial fire management
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Specific range plantings (e.g., grasses, trees, shrubs)
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Brush management
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Forest restoration
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Riparian area management
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Improved wildlife habitats
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Avoiding conversion of grasslands to tillable farming
There are currently two types of programs available: ecosystem services and regulatory compliance markets. Of the two, carbon markets represent a type of program that provides payments for ecosystem services based on carbon sequestration management practices while regulatory
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compliance markets are used to meet legal requirements related to greenhouse gas emissions (GHG) and are regulated through the government. At the time of the study, five carbon market opportunities incorporated grazing management practices: 1. Climate Action Reserve is a carbon offset registry for North America, encouraging methods to reduce GHG emissions and provide financial benefit for those projects. It’s mission is to develop, promote and support innovative, credible market-based climate change solutions that benefit economies, ecosystems and societies. 2. Ecosystem Services Market Consortium (ESMC) is a voluntary, national market selling credits for GHG reduction, water quality and water quantity. It is a subsidiary of the Soil Health Institute with a mission to advance ecosystem service markets that incentivize farmers and ranchers to improve soil health systems that benefit society. ESMC is a non-profit, member based organization and a combination of public and private companies and organizations. 3. Grassroots Carbon finds carbon storage buyers, arranges soil sampling, and third-party certification. IT focuses on regenerative agricultural systems (focused on soil carbon) and provides tools to measure and record ranch information. 4. Regen Network uses blockchain technology to track, verify and reward positive changes to ecological systems. It is an open-source ecosystem services registry for which projects can apply for credits and in turn, transfer and sell them to buyers. 5. Soil and Water Outcomes Fund is actively enrolling farmers and landowners in Illinois, Iowa, and Ohio to incentivize farmers that transition to conservation practices that provide positive environmental outcomes like carbon sequestration and water quality improvement. Two additional markets, Bayer and Native, were also reviewed and cited as being in the early stages of development.
