Bipartisan Bill Would “Grow” Sustainable Agricultural Practices through Carbon Offset Markets | Article

Emission-reduction targets by companies such as Microsoft and Amazon and decisions by private landowners and farmers may appear to be unrelated, but a bipartisan bill seeks to connect corporate interest in climate with individual interest in efficient and sustainable land management. The Growing Climate Solutions Act (S.3894/H.R.7393) was introduced by Senators Mike Braun (R-Ind.), Debbie Stabenow (D-Mich.), Lindsey Graham (R-S.C.), and Sheldon Whitehouse (D-R.I.), and by Representatives Abigail Spanberger (D-Va.) and Don Bacon (R-Neb.) in June 2020. The bills would promote sustainable land use and farming practices by lowering barriers to entry into voluntary carbon offset markets for farmers and forest owners.

Many common agricultural and land use practices contribute to greenhouse gas emissions, and transitioning to more sustainable techniques is an opportunity to remove carbon dioxide from the atmosphere, improve crop quality, prevent erosion and desertification, and enhance biodiversity. However, according to the bill’s authors, many farmers and forest owners do not pursue sustainable land management practices because information on how to do so is not widespread and implementing such practices comes with high up-front costs. Recent attention to nature-based solutions and sustainable land management as carbon removal techniques is creating an avenue for landowners to monetize their sustainable practices by entering voluntary carbon offset markets.

Voluntary Carbon Offset Markets

A carbon offset credit represents the avoidance, reduction, or sequestration of one metric ton of carbon dioxide or greenhouse gas equivalent. Offset markets are platforms on which entities can sell offset credits representing emissions they have reduced or sequestered, or can purchase credits to offset emissions they generate. A range of projects can be monetized as carbon offset credits, including sustainable agricultural land management, wetland restoration, renewable energy installation, and waste heat recovery. Historically, most offset markets have been compliance markets, in which entities buy and sell credits in order to comply with regulations that cap greenhouse gas emissions.

Voluntary carbon offset markets, which are not government mandated, have been expanding rapidly in recent years. The dramatic and continued growth in the amount of carbon offsets traded has been driven by consumer-facing companies, like Amazon and Microsoft, with voluntary emission-reduction targets and supply chains with emissions that cannot be eliminated under current operations. To reduce their net emissions while transitioning to lower-emissions practices, companies purchase offset credits.

The purchase of offsets by companies presents an opportunity for landowners and farmers to implement more environmentally-friendly practices, which may otherwise be cost prohibitive. At the same time, such purchases help companies meet environmental goals and reduce their net contribution to climate change. However, entering the voluntary carbon offset marketplace comes with a number of barriers for many farmers and forest owners, including limited access to both qualified technical assistance providers and third-party carbon credit verifiers.

The Growing Climate Solutions Act

The Growing Climate Solutions Act would direct the Department of Agriculture to remove some of these barriers. It would create the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help farmers and landowners find technical assistance providers with agriculture and forestry expertise and third-party verifiers to confirm that projects reduce emissions or store carbon. The bill would also create a website to guide farmers and landowners through the process of implementing and monetizing their sustainable agricultural and forestry practices, which would help resolve confusion over how to enter carbon offset markets and provide guidance on how to manage land more sustainably.

The bill has the support of members of both parties, agricultural and environmental organizations, business groups, and companies. Its supporters praise the bill as serving the interests of farmers and landowners looking to profit from sustainable practices, businesses working on reducing their environmental impact, and organizations advocating for reductions in greenhouse gas emissions. As business interest in mitigating climate change grows, purchasing carbon offsets is a way to fund sustainable agriculture and land management practices.

Author: Abby Neal