Carbon sequestration
How does this market work?
Am I eligible to sell credits?
How do I generate credits?
How much money do credits sell for?
What is required of me in order to generate credits?
Can I see specific requirements?
I'm Interested. Now what do I do?
How does this market work?
Bay Bank helps develop carbon management plans and connecting to organizations that generate carbon credits for carbon offsets markets or to conservation programs focused on carbon sequestration. Limited funding exists through the Bay Bank from the U.S. Department of Agriculture's Environmental Quality Incentives Program.
Am I eligible to sell credits?
The first step in determining your eligibility is to visit LandServer, http://www.landserver.org. LandServer can generate a report that estimates your potential to generate credits for a variety of market areas. LandServer currently only estimates carbon eligibility for forest-based projects due to limited data. However, Bay Bank can help both farmers and forestland owners plan carbon projects that increase the number of tons of carbon stored by their land.
Whether the tons of carbon generated by planned projects generate carbon credits or not depends on rules defined by a number of organizations. These include the Chicago Climate Exchange, the Voluntary Carbon Standard based in Europe, and the Climate Action Reserve, which emerged in California, but there are numerous systems or “registries” that may prove opportunities for landowners in the region.
The credit generation process is different for each opportunity, which means different expenses and also a different market price. Nationally, the country is also in a state of flux, pending the outcomes of climate policy for the U.S. The Bay Bank recognizes that these uncertainties make it hard to decide whether and when you should seek opportunities to sell carbon credits. The Bay Bank will not buy carbon credits, but is presently offering a service that matches landowners with firms that are developing carbon projects to bring to a variety of markets. The Bay Bank also provides guidance on developing a carbon management plan and implementing practices that increase carbon sequestration and the number of credits that can be sold.
How do I generate credits?
Bay Bank helps landowners take the first step in generating carbon credits by creating a carbon management plan, and identifying actions that have climate mitigation benefits. The management plan will help landowners determine how to best increase carbon storage while balancing other management objectives. Whether a landowner decides to generate carbon credits for a government program or carbon market, a carbon management plan is essential.
The practices included in carbon management plans can include:
- Conservation tillage and residue management
- Improved crop rotations and winter cover crops
- Improved fertilizer management
- Incorporation of organic manure and byproducts
- Improved irrigation management
- Reduced fuel use associated with no-till
- Improved use of fertilizers
- Use of organic manure
- Planting of improved species
- Grazing management/sustainably managed rangeland
- Reforestation
- Improved forest management/sustainable forest management
- Conservation buffers
- Wetland restoration
- Croplands shifted to perennial grasses
- Afforestation of cropland
- Afforestation of pastureland
- Avoided deforestation
To estimate the carbon sequestration and credit price potential of your selected practice, use the Bay Bank's carbon sequestration practice calculator.
How much money do credits sell for?
- Chicago Climate Exchange ($1 per ton)1
- Voluntary Carbon Standard (Prices varied within a range of $2-$4 per ton)2
- Climate Action Reserve ($4-$6 per ton)3
What is required of me in order to generate credits?
Each of the existing carbon registries has different requirements, but there are some commonalities. All require accurate information and mapping of the different land-uses or landcover types on your property. If the property is forested, the registries required a detailed forest inventory and a management plan. Others may require mathematical modeling of the growth of your forest, comparing how it will grow based on practices you decide to implement, to how it would grow otherwise. Collecting the information, and making these calculations can be difficult and the Bay Bank advises that landowners work with firms providing these services if they wish to take part in particular registries. The Bay Bank helps you prepare the information you will need, and find firms and consultants that can help you the rest of the way.
Can I see specific requirements?
- The Climate Action Reserve (CAR):
Avoided deforestation, afforestation/reforestation, improved forest management - Chicago Climate Exchange (CCX):
Afforestation/reforestation and sustainable forest management
Conservation tillage and croplands shifted to perennial grasses
Sustainably managed rangeland
- The Voluntary Carbon Standard (VCS):
Afforestation/reforestation
Agricultural land management
Improved Forest Management
Avoided deforestation - American Carbon Registry:
Afforestation/reforestation, improved forest management, and avoided deforestation - Regional Greenhouse Gas Initiative (RGGI):
Afforestation
I'm Interested. Now what do I do?
To get started with a carbon management plan, simply:
- In your account page, create an “expression of interest” to develop a carbon management plan. Bay Bank will now be able to approach you about participating in our pilot program.
- If invited to participate, you will need to fill out an application
- Contact a service provider to develop your carbon management plan
- Update your “expression of interest” by attaching your carbon management plan to your account
- Organizations interested in buying carbon credits will now be able to contact you
- The Chicago Climate Exchange Market Data under privately negotiated transactions- April 2010: http://www.chicagoclimatex.com/content.jsf?id=1813
- Environmental Markets Newsletter, May 24, 2010: http://www.jlnenvironmental.com/2010_05_01_archive.html
- Environmental Markets Newsletter, May 24, 2010: http://www.jlnenvironmental.com/2010_05_01_archive.html
