What Are Carbon Credits
The carbon credit market is growing rapidly and farmers are finding new ways to get involved. One way is to join a program that helps them establish regenerative farming practices and then sell their credits to companies that want to offset their own emissions. Another way is to participate in a voluntary carbon market, where the buyers set the price and the farmers make the claim.
Both methods have their advantages and disadvantages, but there’s no doubt that regenerative farming is one of the most promising avenues for carbon credit farmers to capitalize on this trend. The key to success is in finding a partner that will help them navigate the process of creating and selling their credits. A good partner can provide a comprehensive approach to carbon credit farming, including data collection, MRV, reporting, and verification.
Once a farmer has signed up for a program, they’ll work with the company to develop a plan that will start them off on their carbon journey. The plan may include practices such as agroforestry, improved water management, reduced tillage, and more. Once the plan is in place, it’s time to start measuring and capturing the carbon.credit. A program such as the eAgronom Carbon Programme will support this process by providing a suite of tools for the farmer, including soil testing software and remote sensing technology.
What Are Carbon Credits For Farmers?
Once the accumulated carbon has been verified by the partner, it’s ready for sale in the carbon market. The prices of carbon credits can vary, but generally they’re priced between $10 and $20 per metric ton of CO2-equivalent. The program will often keep a certain percentage of the payment or carbon credits to cover its fees, and the farmer will receive the remainder of the credits.
A third-party verifier will also check the data provided by the farmer to ensure that there is a real reduction or sequestration taking place. The verification can be done by the partner or a third party organization such as an NGO. There are also rules and regulations that the program needs to follow to ensure that the claims are accurate.
The regenerative carbon credit market is currently booming thanks to increased corporate interest in net-zero goals and a commitment to regenerative agriculture by many major corporations. However, this trend can lead to some issues when not managed properly. Among other things, companies should make sure that the projects they buy carbon credits from are “additional,” meaning that they’re not simply replacing existing activities, such as deforestation, and that they are “permanent,” so that their benefits are seen in the long run. In addition, they should also ensure that the projects meet environmental standards and social requirements. This will guarantee that the credits they buy actually contribute to reducing their greenhouse gas emissions.