News Rabobank Carbon Bank
First farmers get money for carbon credits
Rabo Carbon Bank is starting a three-year pilot in the western peat meadow area, in which farmers are paid for carbon credits. It is the first test of the carbon bank on Dutch soil. In the summer, Rabo Carbon Bank already launched a pilot project in America.
According to the carbon bank, this test can be used to achieve climate gains in two ways. First, carbon is fixed in agricultural soils. Adding compost to the soil or stopping plowing improves the soil and traps more carbon. This potentially saves up to 1 Mton of CO2 in the Netherlands, according to the Rabo Carbon Bank. In addition, farmers can reduce their emissions, for example by using less fossil fuel and fertilizer or – specifically in peat meadow areas – by raising the water level. The realized climate gains are calculated and traded in the form of carbon credits.
For the trial in which eight to ten farmers participate, there is collaboration with Wij.land, which facilitates agricultural pilots. Director Daniëlle de Nie: "Learning and experimenting are central to the project. Peat, clay or sand, one will retain more carbon than the other. And one measure will work better, at less cost, than the other." Soil samples were taken in 2021 and again in 2024 to determine whether extra carbon has been captured in the soil. Also calculates we.land. with a climate model of what the greenhouse gas emissions were when the farmers started with regenerative agriculture, can be read on its website.
The costs for monitoring are borne by Wij.land and Rabo Carbon Bank. The gross price is €45 per tonne, of which €40 per tonne of CO2 equivalent is paid to the farmer, according to Wij.land. The price is fixed for three years. Half of the expected (modelled) emission reduction is paid in advance, in three annual payments. At the end of the project, a final settlement takes place based on the actually recorded amount of carbon in the soil on the one hand and the results of the validated model on the other. Rabo Carbon bank guarantees the purchase of (future) credits by already looking for and contracting buyers.
The credits can play an important role in financing the agricultural transition, says the Rabo Carbon Bank. Bosch: "Some adjustments, such as grassland rich in herbs and healthier soil, will actually yield more money for the farmer after a few years. The compensation for the carbon credits helps the farmers bridge this investment period."
The Rabo Carbon Bank was established in March of this year. Director Barbara Baarsma told in the studio van Boerenbusiness about the plans.
Linda van Eekeres
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