The Role of Agriculture and Forestry In Emerging Carbon Markets

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The Role of Agriculture and Forestry In Emerging Carbon Markets David W. Wolfe Dept. of Horticulture; dww5@cornell.edu ; Websites: http://www.hort.cornell.edu/wolfe hort edu/wolfe http://www.climateandfarming.org Global Greenhouse Gas Warming Impact CH4 15% N2O 8% 18% CO2- Deforestation 59% CO2- Fossil fuels IPCC 2007: Climate Change 2007: Mitigation of Climate Change. Cambridge Univ Press; also see: www.ipcc.ch 1

Carbon dioxide, Methane, Nitrous oxide US GHG Emissions 9% Agriculture 29% Industrial 34% Residential Commercial 28% Transportation 2008 US GHG Inventory Reports, USEPA 430-R-08-005 (In NYS, Agriculture about 2% of total GHG emissions; Globally, Agriculture about 13.5% of total GHG emissions) Natural Soil Biological Processes Exacerbated by Agriculture and Forestry Carbon dioxide (CO2) emissions by soil microbes during the decomposition of crop residues, wood debris in forests, etc. Nitrous oxide (N2O) emissions are a by-product of soil microbial processes associated with the nitrogen cycle: --Converting ammonia-nitrogen to nitrate-nitrogen --Under low oxygen conditions (water-logged soils), converting nitrate nitrogen to atmospheric N2 gas Methane (CH4) emissions under low-oxygen conditions by methanogenic bacteria as they convert CO2 to CH4 (in wet soils (wetlands, rice paddies), wet manures; digestive tract of ruminant animals) 2

U.S. farm energy associated with fertilizer manufacture and transport exceeds gas, diesel, electricity use Farm Energy Use by Source Fertilizers 29% Pesticides 6% Electricity 21% Gasoline 9% 8% Natural gas and Propane 27% Diesel 2008 US GHG Inventory Reports, USEPA 430-R-08-005 Greenhouse Gases on the Farm (Ontario Canada Ministry Ag, Food, Rural Affairs (www.gov.on.ca/omafra)) Source Problem CO2 1:1 Field Excess N fertilizer, or manure X Poor timing and/or placement No or delayed incorporation Excess tillage X N2O 310:1 X X CH4 21:1 Animal Ruminant emissions X X Decomposition of manure on pasture X Manure Decomposition during handling X X X Decomposition during storage X X X Percent of total farm emissions (avg) 12% 55% 33% 3

Mitigation on the Farm Recycle and reduce use of disposable products Reduce fossil fuel use (energy efficiency) Renewable energy and biofuel crops Manure handling, storage and use Improve nitrogen fertilizer use efficiency Increase carbon sequestration Mitigation on the Farm Recycle and reduce use of disposable products Reduce fossil fuel use Renewable energy and biofuel crops Manure handling, storage and use Improve nitrogen fertilizer use efficiency Increase carbon sequestration 4

Nitrogen (N) Management and Greenhouse Gases -Synthetic N fertilizers are energy-intensive to produce -AllN fertilizers (including manure and other organic sources) give off nitrous oxide (N 2 O), a potent greenhouse gas, as they degrade in soils - N management is often inefficient Legume N instead of fertilizer N A broader view of renewable energy 5

Re-coupling animal and crop production systems to re-cycle nitrogen, carbon, other nutrients New approaches to N management: Linking models with weather forecasts Cornell s Adapt-N web-based nitrogen management system (http://adapt-n.eas.cornell.edu) 6

Excess Nitrogen in the Environment: homeowners are a big contributor There are over 3 million acres of lawn in New York state alone! Mitigation (Becoming Part of the Solution) Recycle and reduce use of disposable products Reduce fossil fuel use Renewable energy and biofuel crops Improve nitrogen fertilizer use efficiency Increase carbon sequestration = building soil organic matter, which is good for soil health and sustainable productivity 7

Tillage, Soil Health, and Carbon http://soilhealth.cals.cornell.edu Assessing the whole soil system Increased tillage CO2 Compaction The downward spiral of poor soil health Declining OM (less food for soil)) Poor drainage Reduced soil aggregation Unhealthy microbial communities Linkages: Soil Health and GHG Mitigation Sustaining healthy productive soils reduces need for land clearing, deforestation, and related CO2 emissions. Healthy soils with good drainage are less likely to become anaerobic and thus have reduced N2O emissions (from denitrification), and reduced CH4 emissions. Maintaining year-round vegetation cover (winter cover cropping) increases CO2 uptake and incorporation into the soil; adding OM (composts, biochar) increases soil C stocks Maximizing reliance on N fixation (e.g., legume cover crops) and N mineralization for crop N needs improves NUE and reduces N2O emissions Using organic N sources (e.g., legume cover crops, animal manures, composts) reduces reliance on synthetic N fertilizers which are energy intensive to manufacture, transport, and apply Healthy soils require fewer chemical inputs, reducing carbon emissions associated with manufacture, transport, and application Reduced tillage frequency reduces fossil fuel emissions Reduced tillage increases C sequestration in upper soil profile, but impacts on lower soil profile and overall area-based C sequestration depend on soil type, cropping system, and type of tillage system used for comparison 8

Renewable Energy on the Farm Source: V. Grubinger, Univ VT www.climateandfarming.org GH heated with waste vegetable oil 9

Cow Power Manure Digester switchgrass Corn pellets willow abandoned field: goldenrod and weeds Low Intensity/High Diversity (LIHD) 10

Forestry Practices Protect existing tree stocks of carbon Afforestation projects Use harvest and thinning practices to optimize tree stand health, longevity, diversity, and minimize soil erosion Increase plantings of tree species used for furniture, housing, other long-term uses What is the Potential for Carbon Sequestration by Agriculture and Forestry (Global)? The soil C sink alone: Increasing soil organic C by 10% in top 1 m by 2100: 240 Pg (1 x 10 15 ) C by 2100, equivalent to reducting atm CO2 by 112 ppm. --Rattan Lal, Ohio State Univ McKinsey&Co, 2009 Pathways to a Low Carbon Economy 11

Many ag mitigation options have low or negative cost (co-benefits) McKinsey&Co, 2009 Pathways to a Low Carbon Economy Issues/Barriers to Agricultural Carbon Trading Soil C involves complex, dynamic physical, biological, and ecological processes Increasing C through soils and trees is a long-term enterprise Challenges and expense for monitoring i Permanence issues: How long will the C be stored and how can this be guaranteed? Leakage issues: Carbon emissions shift to other regions as one region adopts conservation measures Additionality issues: those already practicing lowcarbon management cannot receive credit Equity issues: Inequality in capacity to build soil C among soil types and cropping systems; if offset payments based on acreage, small land owners will benefit less Current market C prices are too low to act as an incentive 12

Reducing the Transaction Costs: Landscape-Level Carbon Accounting Detailed GIS-based soil maps Detailed GIS-based land use, vegetation type and cover, land management and cropping system mapping Climate data (temp, rainfall) Strategic soil carbon sampling and monitoring, other approaches such as remote sensing of land use change Use of simulation models of soil carbon dynamics (e.g., Century, EPIC) Create incentives for best management practices 13