The role of carbon markets in supporting adoption of biochar

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1 Task 38 The role of carbon markets in supporting adoption of biochar Annette Cowie, Ruy Anaya de la Rosa, Miguel Brandão

2 Emissions trading Why? Woolf et al 2010 Technical potential: 6 Gt CO 2 -e pa

3 Emissions trading Why? Market provides cheapest abatement Encourages innovation Offsets: flexibility No net gain? Progressively tighten cap

4 Emissions trading How? Mandatory Cap and Trade, or Baseline and Credit National, Regional: European ETS, California, RGGI Voluntary action Direct Action : Australia s Emissions Reduction Fund Abatement projects market Kyoto Protocol Clean Development Mechanism Verified Carbon Standard etc Carbon Farming Initiative (Australia)

5 International context Inventory reporting UNFCCC All parties GHG accounting Kyoto Protocol Annex I parties Sectoral boundaries National scale IPCC Guidelines Annual emissions / removals

6 Industry context Offsets Project credits Businesses LCA Carbon labels Products or organisations Cradle to grave boundaries Farm/forest scale Scheme Guidelines, Standards Emissions reduction, removal enhancement

7 Carbon market requires that abatement projects are: Measurable Verifiable Permanent Additional Conservative Consistent with international policy Supported by peer-reviewed science, And must minimise or account for leakage

8 Offset projects: What matters? Purpose: Provide credible flexibility option in emissions trading Accurate? Conservative? Consistent Credit only intentional abatement Right incentive

9 Quantifying abatement from biochar Is it measurable?

10 Quantifying abatement Methodologies A methodology must include: description of the abatement activity description of the GHG sources and sinks affected by the project procedure for determining a baseline which represents emissions and removals that would occur in the absence of the project procedure for estimating abatement relative to the baseline data collection and monitoring requirements, and reporting and record keeping requirements.

11 Project Baseline Biomass residue Transport Pyrolysis to biochar and syngas Biomass residue Landfill Fossil energy/carbon source Extraction Transport Conversion to energy carrier Distribution of biochar Distribution of energy carrier Distribution of energy carrier Fertiliser manufacture Distribution of fertiliser Soil amendment Energy service (heat, electricity) Soil amendment Energy service (heat, electricity)

12 Cowie et al, 2015

13 GHG sources and sinks for biochar project Delayed oxidation of biomass Avoided CH 4 and N 2 O emissions eg from landfill or manure handling and application Reduced N 2 O emissions from soil Increased soil organic matter (negative priming) Increased plant growth Reduced fuel use in cultivation, irrigation Avoided emissions from fossil fuels and/or electricity generation due to the use of co-products as renewable energy Avoided emissions from N fertiliser manufacture

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15 Quantifying abatement from biochar Is it measurable?

16 Soil carbon measurement No-till

17 Nitrous oxide measurement

18 Quantifying abatement Do we need to monitor it? Balance accuracy against transaction costs Cost-effective accounting Based on accepted models Credit based on modelled estimate rather than measured impact of practice

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20 Index of biochar stability BC +100 The fraction of carbon present in biochar that is expected to remain in soil for at least 100 years when added to soil Indicator: H/C org

21 BC+100 stability conversion values (ACR, 2013) Biochar BC+100 factor in correlation with H:C org ratios BC+100 H:C org 70% <0.4 50% >0.7

22 Cayuela et al, 2015

23 Consistent internationally? Avoided fossil fuels Avoided methane Reduced nitrous oxide How to count carbon stabilisation through pyrolysis? Avoided /delayed decomposition Soil carbon enhancement? Agriculture and forest soils only?

24 GHG sources and sinks for biochar project Delayed oxidation of biomass Avoided CH 4 and N 2 O emissions eg from manure handling and application Reduced N 2 O emissions from soil Increased soil organic matter (neg priming) Increased plant growth Reduced fuel use in cultivation, irrigation Avoided emissions from fossil fuels and/or electricity generation due to the use of coproducts as renewable energy Avoided emissions from N fertiliser manufacture?? x /x /x /x

25 Are life cycle emissions considered? For example: Extra fossil fuel use in transport, processing into biochar (construction, operation of pyrolysis plant) Emissions eg methane from pyrolysis? Priming of SOM?

26 Are indirect emissions (leakage) considered? Increase in emissions elsewhere as a result of the project, should be included in project accounting Eg: Biomass depleted at another site?

27 Is it verifiable? Verification MUCH easier if Eligibility based on implementing specified practice rather than measured abatement Quantification based on modelled estimate rather than measured abatement

28 Is it permanent abatement? abatement should represent a permanent reduction in CO 2 in the atmosphere Permanence obligation not relevant for emissions reduction aspects Removals are vulnerable to reversal Permanent = 100 years

29 Additionality Is it new abatement? ( Abatement should be additional to business-asusual if it used to offset emissions ) Goes beyond common practice? Not required by law?

30 Will it be an effective measure? Sufficiently attractive to encourage participation? Costs vs returns Record keeping Monitoring Reporting Audit Long term liability (sink projects) Certainty and absolute accuracy not required Minimise transaction costs so encourage participation, to maximise abatement

31 Role of aggregator Scheme Administrator Pool Manager Registry Abatement calculation, Record keeping Verification Producer One Producer Two Producer Three Sequestration / emissions reduction Pool

32 Role of government Accept risk manage buffer eg 5% of estimated abatement Act as aggregator: maximise the pool size, minimise transaction costs

33 Emphasise multiple benefits Avoid GHG emissions Reduce health risks Enhance productivity, food security Close nutrient cycle Provide alternative livelihoods Manage waste Enhance sustainability Bundling benefits

34 Life cycle sustainability issues Sourcing of the biomass feedstock Handling of the biomass feedstock Conversion of the biomass feedstock into biochar Handling and application of biochar into soils Effects of biochar application into soils

35 habitat fibreboard biofuel biochar Soil carbon biochemicals

36 Biochar versus other options Sustainable land management involving biochar vs Reduced emissions from deforestation and forest degradation (REDD+) Afforestation / Reforestation Harvested wood products Wood harvest and storage (WHS) and crop residue oceanic permanent sequestration (CROPS) Bioenergy Bioenergy with carbon capture and storage (BECCS)

37 Cf Meyer et al EST: Bioenergy systems achieve % of the climate benefit of biochar Dominic Woolf

38 Carbon t/ha Potential mitigation through wood products, bioenergy and biochar Trees Trees + products Trees + products + biochar + bioenergy Unharvested Year

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41 Sustainability issues for biochar direct (1) Biomass procurement Residues: Soil erosion Soil compaction Nutrient depletion Soil carbon loss (GHG, productivity impact) Purpose grown: Water use Biomass and/or soil carbon decline GHG balance - N 2 O emissions

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43 Sustainability issues for biochar direct (2) Biochar production GHG emissions particulate emissions Biochar application dust contamination (if feedstock contaminated) Whole system: net mitigation benefit (incl transport, plant construction) financial viability

44 Sustainability issues for biochar indirect Indirect land use change Land clearing Fire Drainage of peatlands Environmental GHG emissions: loss of biomass carbon, soil carbon Biodiversity Air pollution Water quality Social displacement, food security Economic competing uses

45 Biochar should deliver net environmental benefit across the whole life cycle, incl climate change impact, water, biodiversity. be made from sustainably harvested and renewable biomass resources. be produced in a facility that controls emissions, & preferably harnesses energy output for efficient beneficial use. maintain or enhance essential environmental services such as water and air quality, protection of soil resources, conservation of biodiversity contribute to sustainable development and alleviation of poverty

46 How can we encourage sustainability? Sustainability framework approach: Institutional systems: Regulation Incentives Standards Guidelines Certification Monitoring, assessment and reporting Criteria and Indicators Adaptive management

47 Role of science Research aimed at generalised understanding (across environments) Models - tools for estimating abatement based on easily measured variables Credibility: Confidence of the market, of policy-makers Consider your audience: what s the key message?

48 What is the best use of biomass resources? Task 38

49 Task 38 How can land be used to produce biomass without compromising other needs? Can biochar enhance productivity?

50 Prospects for biochar projects? Credible? Additional Measurable Manage permanence Manage leakage? Verifiable

51 Biochar in the carbon market? Can we do it? Accepted concept Accepted methodology Should we do it? Effective mitigation measure Life cycle mitigation value Alternative options Other environmental and social benefits Risks managed Standards, certification

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