SOIL CARBON AND CLIMATE CHANGE NEWS

 

From Kansas State University's:

Consortium for Agricultural Soils Mitigation of Greenhouse Gases (CASMGS)

http://www.oznet.ksu.edu/ctec

 

Charles W. Rice, K-State Soil Microbiology, National CASMGS Coordinator (785) 532-7217 cwrice@ksu.edu

Kent McMay, K-State Soil and Water Conservation Specialist (785) 532-5776 kmcvay@ksu.edu

Steve L. Watson, CASMGS Communications (785) 532-7105 swatson@oznet.ksu.edu

 

 

October 14, 2003

No. 25

 

This week's issue:

 

Kansas:

* CASMGS Carbon Measurement and Monitoring Forum At K-State

 

National:

* Chicago Climate Exchange Holds First Auction: Initial Carbon Price Discovery

 

International:

* The Challenge Of Carbon Trading: Six Years Of A Carbon Project In Chiapas, Mexico

 

 

 

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CASMGS CARBON MEASUREMENT AND MONITORING

FORUM AT K-STATE

 

The CASMGS Carbon Measurement and Monitoring Forum is being held this week in Manhattan. At this Forum, national and international speakers will discuss the various methods being used to measure and account for agricultural soil carbon. Researchers and policymakers are trying to develop better international cooperation in agricultural soil carbon accounting.

 

The Wednesday afternoon session is free and open to the public. It will be held at Forum Hall in the K-State Student Union. The schedule for this session is:

 

2:00 pm - Welcome

 

2:10 pm - Australian approaches to carbon monitoring, Jeff Baldock, Australian CRC for Greenhouse Accounting

 

2:45 pm - Canadian approaches to carbon monitoring, Carlos Monreal, Agriculture and Agri-Food Canada

 

3:20 pm - New Zealand approaches to carbon monitoring, Kevin Tate, New Zealand Landcare Research

 

4:10 pm - U.S. approaches to carbon monitoring, Joel Brown, USDA-NRCS

 

4:45 pm - U.S. International Initiative in Climate Change, Toral Patel-Weynand, U.S. Department of State, and Jim Hrubovcak, USDA

 

The remainder of the Forum (Wednesday evening through Friday afternoon) features scientific presentations, field trips, a talk by Jim Moseley, USDA Deputy Secretary, and a luncheon talk by Sen. Pat Roberts (R-Kan.). Most of the conference will be held at the Holiday Inn in Manhattan. The registration fee at the door for this part of the Forum is $245. For details, see: http://www.oznet.ksu.edu/ctec/Fall_Forum.htm

 

I’ll have reports in upcoming issues of this newsletter on several of the presentations made at this Forum.

 

-- Steve Watson <swatson@oznet.ksu.edu>

 

 

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CHICAGO CLIMATE EXCHANGE HOLDS FIRST AUCTION:

INITIAL CARBON PRICE DISCOVERY

 

In its first-ever auction, the Chicago Climate Exchange (CCX) sold 100,000 Vintage 2003 carbon dioxide (CO2) emission allowances at an average price of $0.98 per metric ton and 25,000 Vintage 2005 allowances at an average price of $0.84 per metric ton. "This is a landmark moment for market-based solutions to environmental concerns," said CCX Chairman and CEO Richard Sandor. "By establishing a mechanism for achieving price discovery and disseminating market information, CCX has achieved one of its central goals." The auction was a sealed-bid sale of CO2 emission allowances by CCX members, which includes Ford Motor Co., DuPont, the City of Chicago, and 19 other companies and organizations.

 

To convert this, 1 MT CO2 is .27 MT of C, according to Chuck Rice, K-State professor of Agronomy. As a result, $0.98 per metric ton CO2 equals $3.63 per MT of C. Kansas results show a C sequestration rate of 0.25 to 1 MT C per hectare per year. At $3.60 per MT C per hectare, that would equate to about $0.90 to $3.60 per hectare per year.

 

Finally, converting that to U.S. measurements, that equals about $0.45 to $1.80 per acre per year. 

 

-- Steve Watson <swatson@oznet.ksu.edu>

 

 

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THE CHALLENGE OF CARBON TRADING:

SIX YEARS OF A CARBON PROJECT IN CHIAPAS, MEXICO

 

Scientific work has confirmed that a marginal, but potentially significant reduction in atmospheric carbon dioxide can be achieved by sequestering it in trees, especially new trees, and the soil beneath them. A recent Royal Society book, Capturing Carbon and Conserving Biodiversity: the Market Approach, edited by I.R. Swingland (London, Earthscan 2003) sets out the progress and reviews all the problems that continue to surround the 1997 Kyoto Protocol, and its “flexibility mechanisms” that include carbon trading. The book makes clear that notwithstanding all the political posturing, an infant market in carbon offsets has been emerging for some years.

 

 

One important question is how the benefits can be made available to the small farmers who actually sequester the carbon under the “clean development mechanism” proposed in Kyoto. A study reported by Kristen Nelson and Ben de Jong of a carbon mitigation project in Chiapas, Mexico, provides a good example of how theory has been put into practice despite uncertainty at the local and international levels.

 

 

The project began in 1995 with 43 farmers from eight communities and 4 scientists from a federal research institution. The farmers rely on growing corn and beans, coffee and some cattle. Using participatory methods, the project evaluated the carbon sequestration potential of the agroforestry and forestry systems in the region. Several potential systems were considered technically, socially and economically viable: living fences, shaded coffee, taungya system, enriched fallow, Mucuna green manure, reforestation, and forest regeneration and conservation. An institution was created within a coffee cooperative, advised by scientists and a forest economist who raised funds and became a promoter at the international level.

 

 

The project has grown dramatically. By 2001 there were contracts with 450 individual farmers from 25 communities, and 4 communal landholdings. The number of hectares under contract increased 7 fold and the total carbon contracted over the 5-yr period to 2001 was over 30,500 tonnes. From the original range of systems, farmers chose taungya and enriched fallow that provided higher payments. This could potentially reduce biodiversity enhancement and raises the issue of the influence and possible distortion of other land-use benefits by carbon markets.

 

 

In the pilot phase decision-making and management were shared between farmers, the academic advisers and the carbon promoter. Over time, farmer representatives became more powerful, and pressured the project to pay out the contracts early rather than over the planned 10 years. To avoid such farmer domination and to expand the project, the carbon promoter re-organized it under a new umbrella programme called Fondo Bioclimatico. The Fondo now supports five farmer organizations, and a NGO was formed to provide technical assistance. The Fondo is seen to act as a bank, where farmers contract to deposit carbon and withdraw payments. Although the goals of social and community benefits are still used to sell the programme, these are indirect benefits from the primary goal to market carbon. Transparent administration and systems for monitoring the contracts have had to be developed.

 

 

Farmers understandably are very interested in being involved in this new market. This project has shown how smallholder farmers can participate in the global carbon market designing carbon mitigation systems that fit their resources and other agricultural needs. Scientists point out that the main value of carbon sequestration belongs in the first decades of the new century, while cleaner emission technologies are still being developed and adopted, so the Chiapas project offers one interesting option. Whether one likes carbon trading or not, it seems very clear that nothing but projects that offer real incentives are likely to work. Moreover, they offer subsidiary benefits, not least for biodiversity.

 

 

To correspond with the author or obtain a free electronic copy of this paper, write to kcn@umn.edu

 

 

-- K.C. Nelson and B.H.J. de Jong. 2003. Making global initiatives local

realities: carbon mitigation projects in Chiapas, Mexico. Global Environmental Change 13(1): 19-30

 

 

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MEETINGS OF INTEREST

Note: All dates are 2003 unless otherwise noted.

 

October 15-17

CASMGS Carbon Measuring and Management Forum

Manhattan, Kansas

For more information, contact Scott Staggenborg at (785) 532-5833

 

January 20-22, 2004

CASMGS Forum: Can Agriculture and Energy Partner Using Soil Carbon Sequestration to Offset Greenhouse Gases?

College Station, Texas

For more information, contact: tanveer@tamu.edu (979-845-3153) or see:

http://agecon.tamu.edu/faculty/mccarl/acs/casmgs_conf_send.htm

 

 

 

Send comments or items for the newsletter to Steve Watson at:

<swatson@oznet.ksu.edu>

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