Background Climate
CO2 projects galore, now farmer's earnings model
Companies that emit CO2 will work together with farmers who take extra measures to fix CO2 in the soil for a long time as organic matter. The theory sounds promising and various parties are exploring the commercial possibilities. But can the farmer already hear the cash register ringing?
Rabobank launched the Carbon Bank earlier this year, in which companies that emit CO2 are linked to farmers who store CO2. The Belgian Soil Capital is active on the European market, selling CO2 rights from farmers who store carbon in the soil. Fertilizer producer Yara will soon launch the Agoro Carbon Alliance, an initiative targeting North America for carbon cropping practices that generate additional revenue for agricultural businesses.
In practice, however, it turns out to be difficult to develop an earning model for farmers for this type of climate control, as emerged last week at a meeting held by the Dutch embassy in Belgium. There they looked at a revenue model for capturing CO2 in the ground. had organized. The practical elaboration appears to have a number of snags.
Long-term
The build-up of organic matter in the soil is a long-term process. It often takes years before a clear increase in the organic matter content can be detected. When this process is sold as a service, the buyer wants to know what he is paying for. Reliable and affordable methods must be developed for this to measure the actual build-up of organic matter.
There is also little clarity about the agricultural measures required to increase organic matter. The supply of organic matter in the form of solid manure or compost is a proven technique. But here the possibilities are limited by the Fertilizers Act. Broadening the application standards has possible negative side effects on, for example, nitrogen leaching.
According to various studies, non-inversion tillage (NKG) has a positive effect. But this is not possible in all building plans. And how do you deal with a grower who decides to take the plow again after a few years? And what will happen to growers who have been working for years on increasing the percentage of organic matter, so that they now have less room for further improvements? Such demands for tailor-made solutions.
Government must take the lead
The (extra) captured CO2 can be converted into cash in various ways. The direct way can be a system of carbon credits. But you can also think of an interest discount, a lower lease price or a settlement via the GLB. The big problem, according to the researchers, is how to objectively determine how much organic matter and thus CO2 is actually stored.
A poll among visitors to the online event shows that a large majority expect that CO2 storage will not get off the ground without government intervention. According to the experts, the government can also play an important role. This concerns, for example, the creation of the preconditions or the use of subsidies. According to these experts, farmers should maintain control themselves. Ultimately, they should be able to decide for themselves which CO2 storage method suits their company best.
Jurphaas Lugtenburg
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