31 Follow us on Twitter: @PrairieFarming Better Farming | November/December 2023 numerous internationally recognized rules, often called standards, methodologies, or protocols.” This varies from Alberta’s program, in which carbon credits and carbon offset are different. Alberta’s carbon offsets are regulated under the Alberta Emission Offset System, which is the largest regulation program for carbon offset in Canada. “Carbon credits are ‘permissible emissions’ issued to organizations by a regulatory body,” says RJ Sigurdson, the Alberta Minister of Agriculture and Irrigation, in a recent statement shared with Better Farming. He clarifies that the number of carbon credits a company receives dictates the maximum amount of carbon dioxide the company can emit based on the ‘cap’ system. “Carbon offsets are NOT the same as carbon credits,” says Minister Sigurdson. “Carbon offsets are created as ‘compensation’ to an organization that invests in a carbon capture or emissions reduction project. One carbon offset represents one tonne of CO2e that has been removed from the atmosphere.” Carbon offset can then be marketed to carbon emitters, which is where Prairie farmers have an opportunity to participate in the carbon market. What farm practices qualify for carbon offset creation and are they feasible for producers to implement? Do they work on-farm? As the agriculture industry is encouraged to reduce carbon emissions, a few practices that have become more common on Prairie farms could also qualify as a carbon offset. Generally, the producer would implement a new practice that sequesters carbon, it would be verified by a third party, and then the offset would become available for purchase by a company to offset their own carbon production. The Saskatchewan Ministry of Environment lists a few practices that could be eligible for carbon offset. “Providing they meet program requirements and obtain third-party verification fertilizer reduction, improved water management through irrigation, reduced tillage, improved residue management, agroforestry, crop rotations, cover crops, and cattle grazing are eligible,” says the Saskatchewan Ministry of Environment. “Each offset program oversees projects registered within their respective programs via protocols and standards. This includes requiring third-party verification to meet International Standard Agency Standard 14064-1:2018, which specifies principles and requirements at the organization level for the quantification and reporting of GHG emissions and removals.” After verification, the credits can then be listed for sale. “A seller lists their credits on the program’s registry with documentation outlining the project’s scope and verification documents,” says the Saskatchewan Ministry of Environment. In the international market commonly used by Saskatchewan carbon offset producers, there are currently more credits or offset available than there are buyers. “Therefore, working with a recognized program with a good reputation is essential when creating high-quality credits that buyers seek,” explains the Saskatchewan Ministry of Environment. Alberta has its own regulation system that has defined protocols for farm activities that generate carbon offsets. “Alberta currently has three approved protocols available under Technology Innovation and Emissions Reduction (TIER) Regulations for use in agriculture,” says Minister Sigurdson in his statement. The first is the Agricultural Nitrous Oxide Emission Reduction Protocol (NERP). “The NERP is based on improving nitrogen fertilizer efficiency. NERP uses 4R Nutrient Stewardship, an internationally recognized program that advocates for responsible and effective management of nutrient resources,” explains Sigurdson. The second protocol is the Reducing Greenhouse Gas Emissions from Fed Cattle Protocol, which focusses on cattle in feedlots. “It rewards a reduction in the time cattle spend in the feedlot through improved efficiencies. The greenhouse gas reductions are variable, and the offsets are based on an improvement compared with a three-year baseline. It also provides operations with the benefit of saving costs on feed.” The final protocol is the Selection for Low Residual Feed Intake Markers in Beef Cattle Protocol which encourages development of efficient cattle genetics. “This protocol focuses on breeding cattle for more efficient feed use to reduce methane and nitrous oxide. It also provides operations with the benefit of saving costs on feed,” says Sigurdson. For programs in both provinces, record-keeping is extremely important to ensure a smooth verification process. The records required will also vary based on the practice or protocol being applied. A willingness and ability to keep extremely detailed records may be a consideration for producers who are looking into carbon offset production. Another factor in determining if carbon offset production works onfarm is assessing how much value carbon offsets will actually bring to the operation. “Value is determined based on what the buyer is willing to pay, and the seller is willing to accept. These negotiations are done over the table and behind closed doors. “There are markets available that list credits in a stock exchange format, allowing a quasi-free market to play its role. However, there are additional fees for this service,” says the Saskatchewan Ministry of Environment. In Alberta, where the Alberta Technology Innovation and Emissions Reduction (TIER) Regulation system Carbon Offset Programs
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