Greenhouse Gas Offsets in Livestock Systems
Overview
Context in Alberta, Canada Canada 1990 National Inventory Report on Greenhouse Gas (GHG) Sources and Sinks Science basis, draft agricultural protocols Alberta emitting 37% national totals Alberta 2002 Taking Action on Climate Change Strategy Learn by doing, continuous improvement 2005 Emission reporting 2007 Specified Gas Emitters Regulation > 100,000 T CO2e / yr, intensity reductions 12% /yr, four compliance options 2012 Increased verification requirements 2014 Increased target, carbon price 2015 Climate Leadership Plan Hard cap on emissions, off coal by 2030, carbon tax on fuel use, energy efficiency program 2010 GHG Emissions Data from National Inventory Report, Environment Canada, 2012 Forecast Environment Canada outlook to 2020
Carbon Offsets Regulated emitters can: 1) Reduce emissions 2) Trade performance credits 3) Pay $15 / T CO2e 4) Purchase voluntary offsets Unregulated emitters can: Voluntarily lower emissions Reduce, remove or replace fossil fuels Sell emission abatements
Offset Quantification Protocols International Standard (ISO 14064-2) Compatible between different sources and types of emissions Best, most recent science Identify emission factors, calculations Compare net emissions from all GHG in Baseline vs Project conditions Records to verify practice change Costs reduced by prescribed process Assured by: Government approval of protocols Third party verification Alberta Emissions Offset Registry Provides certainty for emitters, investors and government about amounts of CO2e abated
Offset Framework Science Additional / Real - Management improvements beyond business as usual Policy Quantifiable - Sound science - Measured, extrapolated - Accepted, peer reviewed Offset Verifiable - Records, data management - 3 rd parties, accountants, engineers Practice
Agricultural Protocols Energy Biogas - 2007 * Biofuel - 2007, version 2-2014 Energy Efficiency - 2007 Biomass - 2007, now Waste Biomass - 2014 Renewable Micro-Energy Generation - 2014 Cropping Tillage - 2007*, now Conservation Cropping - 2012* Nitrous Oxide Emissions Reduction (NERP) 2007, version 2-2015** Livestock Dairy Protocol - 2010** Beef Reduced Days on Feed - 2011 Beef Reduced Age at Harvest - 2011 Beef Low Residual Feed Intake - 2012 * Protocols in use by primary producers at $15 / T CO2e ** Protocols developed by private industry
Uptake of Offsets Source: Alberta Emissions Offset Registry, January 2016 Over 12 Mt CO2e - primarily Tillage, some Biogas (manure) Represents close to 1/3 of offsets used for compliance Over $160 M in offset sales (assuming $12 / T CO2e) After 2012, rate of offsets declined from 1.0 Mt CO2e / yr for Tillage Management to 0.1 Mt CO2e / yr for Conservation Cropping
Dairy Protocol - 2010 Improved feed quality, manure management, feed quality and/or reduced replacement herd On-farm pilot study*, 100 farms Producers and third parties (e.g. Alberta Milk) supplied records Results of mock verification : o Most not collecting all records needed o Clarification needed about data and types of documentation o Improvements require collaboration o Value of offsets not motivating Revised protocol to clarify records, streamline calculations 2014 *Funding by Agriculture and Agri-Food Canada
Beef Protocols Reduced Days on Feed - 2011 - Feedlot finishing phase - Diet changes, feed additives (e.g. edible oils) - Revised to Reducing GHG in Fed Cattle 2014 Reduced Age to Harvest - 2011 - Entire lifespan - Move harvest closer to optimum market weight Low Residual Feed Intake - 2012 - Genetic selection for lower maintenance and increased feed utilization at same level of production
Agricultural Offsets Challenges Science Emissions variable, unconcentrated Complex, 3 types of GHG Segmented Measurement Time, expertise Policy Price Changes Expectations increasing Regulated Practice Records Data management systems 3 rd party verification Transaction costs Opportunities Large numbers, areas Model development Increased efficiencies Integrated systems Rationale for funding Co-benefits, efficiencies Demand increasing Capacity is transferrable New types of evidence Simplify, scale Transferable
Changes to Specified Gas Emitters Regulation - 2015 Year Carbon Reduction Price Required * ($ / T CO2e) (%) * 2007 to 2015 15 12 2016 20 15 2017 30 20 *As compared to a baseline of average emission intensities from 2003 to 2005
www.agriculture.alberta.ca/agcarbonoffsets
Acknowledgements Agriculture and Agri-Food Canada Canada-Alberta Agriflex Emerging Environmental Opportunities Atlantic Dairy and Forage Institute Canadian Fertilizer Institute (now Fertilizer Canada) Ducks Unlimited Climate Change Emissions Management Fund
Opportunities in Alberta Net Soil Removals (Low Till, Annual to Perennial) Source: Environment Canada, 2015, National Inventory Report 1/3 Canada s agricultural land, 40% of Canada s beef (2 M hd) Semi-arid to sub-humid climate, 46% crops, 41% pasture Agricultural emissions 8% of Alberta s total 44% livestock, 54% cropping 17% removed by carbon sequestration
Timeline Low RFI, Revised Tillage (Conservation Cropping) Revised NERP Dairy* Nitrous Oxide Emission Reduction Protocol (NERP)** Revised Waste Biomass Biogas, Biofuels Provincial: Approved Tillage, Pork, Energy Agrologist Agricultural Protocols Biogas, Biomass, Biofuels Beef (3) Practice Standard Supplemental: KPMG Advisory Data Management Dairy Protocol Pilot Validation Studies (3) 1990 2000 2002 2005 2006 2007 2010 2011 2012 2013 2014 2015 2016 Provincial: Taking Action on Facilities Report Specifed Gas Emitters Reasonable Level Increase C price, Climate Change Emissions Regulation Assurance Targets Strategy (30 protocols) Federal: National Offsets Quantification Team External funds: GHG science basis Draft protocols *Atlantic Dairy and Forage Institute National Inventory Report Pork, Nitrogen Use, Tillage **Canadian Fertilizer Institute (now Fertilizer Canada) Canada-Alberta Agriflex Emerging Environmental Opportunities Ducks Unlimited Climate Change Emissions Management Fund