7/24/2023 0 Comments Bayer carbon credits![]() The contract period is 10 years and includes cropland or rangeland.Producers will be paid annually for the amount of soil carbon sequestered, GHG emissions reduced, pounds of phosphorus and nitrogen and tons of sediment prevented from release into the watershed and water saved annually from reduced irrigation (based on ESMC quantification, verification and third-party certification). When credits are sold on the CIBO marketplace, CIBO pays the farmer while keeping 20% of the transaction fee. CIBO markets the credits both directly and as part of an ag carbon credit pool. The grower retains ownership of his or her credits. Once practices are verified by CIBO through remote sensing and interviews, a farmer’s regenerative potential becomes a CIBO carbon credit that is available for sale on the CIBO marketplace. Growers agree to a one-year term, and they complete a one-page form attesting to their practices. The program is called the REAP program: Rapid Enrollment, Annual Payment. Soon, CIBO will enable growers and enrollees to set the price of their own credits. No minimum enrollment, but average is 1,000 acres Producers are required to plant corn or soybeans, have an active FieldView Plus account and agree to share the data needed for the program. Producers will be paid by the acre, not by the amount of carbon sequestered.īayer’s carbon initiative pays producers for adopting climate-smart practices such as no-till, strip-till and the planting of cover crops. How Some Leading Carbon Markets Compare Bayer Most carbon contracts have some sort of mechanism if you fail to sequester carbon. Some contracts ask landowners to abide by rules, policies or amendments-and there might not be a mechanism in place for farmers unwilling to abide by the rules, experts say. Understand to what you are committing and for what period of time. Assess contract terms, length and exit clauses. ![]() Some systems include holdbacks or percentages the organization with which you are contracting takes off the top. Confirm that sequestration projections are in line with what other industry sources estimate. Make sure the organization with which you are working does not have a conflict of interest in the measurement process. Understand how the contracting entity is measuring carbon.But verification can be costly.” She offers these tips to consider for farmers and advisers. The higher the certainty around the emission reductions, the higher the value of the credits-at least in theory. “In the absence of a national policy, carbon markets are a bit of a Wild West,” says Laura Sands, principal at K In late January, Peoples Company and CIBO Technologies announced a partnership to offer carbon credits on more than 20,000 acres of land managed by Peoples, an Iowa-based land transaction and advisory firm.
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