AGORO

CARBON FARMING:

SOIL HEALTH + NEW REVENUE

By Clay Craighton, Agronomist, Agoro Carbon Alliance

Carbon Farming involves implementing practices that are known to improve the rate at which CO2 is removed from the atmosphere and converted to plant material and/or soil organic matter. It includes a variety of agricultural methods aimed at sequestering atmospheric carbon into the soil and in crop roots, wood and leaves. Practices such as: reducing tillage or moving to no tillage, introducing cover crops, improving your biodiversity on your pasture, and more are some examples of these carbon sequestering agricultural practices.

Conservation soil health practices are proven to increase profitability. With Agoro Carbon Alliance, they can also generate carbon credits that add a new revenue stream for your farm or ranch nationwide, while reducing other operational and crop input cost savings. Increased profit potential from your same acreage plus improved soil health and crop nutrient availability are some of the many benefits that can incur from implementing these practices.

WHAT ARE CARBON CREDITS AND WHY ARE THEY IMPORTANT?

• A carbon credit (or “offset") is a certificate representing one metric ton of carbon dioxide equivalent that is either prevented from being emitted into the atmosphere or removed from the atmosphere as the result of a carbonreduction project. • Carbon credits can be used by buyers to compensate emissions by financially enabling projects that avoid emissions or remove carbon dioxide.

• Hence, carbon credits are an important market-oriented mechanism to reduce greenhouse gas emissions and tackle climate change.

HOW DO CARBON MARKETS WORK?

• Supply is created by project developers that develop an emissions avoidance/ reduction or removal project. • Projects are certified by independent third-party auditors that validate against a methodology as defined by standard/ certification body (e.g. Verra Standards). • Buyers purchase and retire the credits so their impact can be claimed towards a climate target. • Intermediaries bring supply and demand together and maintain records of the creation and sale of credits on central registries. • Carbon pricing compares with other commodity pricing, ie. subject to market forces.

THERE ARE TWO TYPE OF CARBON MARKETS:

• Compliance markets are based on government regulations and allow firms to reduce emissions for compliance purposes.