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Ecoagriculture Partners PES Newsletter
November 2, 2010

Table of Contents

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  Advisory Group
Michael Bennett, Forest Trends, China

Andrew Bovarnik, UNDP/GEF, Panama

Sally Collins,
Former Director of USDA Office of Environmental Markets, Fellow at Rights and Resources Initiative (RRI)

Fabrice DeClerck, Centro Agronómico Tropical de Investigación y Enseñanza (CATIE), Costa Rica

Dennis Garrity, World Agroforestry Center (ICRAF), Kenya

Leslie Lipper, Food and Agriculture Organization of the United Nations (FAO), Italy

Mikitaro Shobayashi, Gakushuin Women's College, Japan
Commentary Market and Policy Developments
    Resources
      Science and Technology Announcements and Opportunities

      Commentary

      Pushing forward an agricultural sequestration agenda

      While the international climate change community struggles to find its bearings following a particularly disappointing year, work on agriculture and climate change has quietly continued to grow. Two meetings this autumn, in the The Hague and in Cancún, will highlight this work and could potentially lay the foundation for a significantly more ambitious agriculture and climate change agenda. 


      The Hague Conference on Agriculture, Food Security, and Climate Change in the Netherlands precedes COP16 in Cancún by three weeks. It will be a high-level meeting and roughly 50 ministers of agriculture are scheduled to attend. It will bring together organizations and government officials to discuss the linkages of these topics and work towards a framework for an integrated program into which any developments at the UNFCCC can be linked. An investment fair at the conference is intended to showcase and spur interest in new financing mechanisms, incentive schemes, and supply chain innovations.
       

      At the end of November, the UNFCCC 16th Conference of the Parties will convene in Cancún in an attempt to reignite the process of climate change negotiations. Although a binding agreement is reportedly off the table for this COP, a series of smaller accords may arise from the negotiations, including several pertaining to agriculture. At the negotiations in Copenhagen, and subsequently, agriculture has found a prominent spot with the Ad hoc Working Group on Long-Term Cooperative Action (AWLCA). The entirety of chapter nine of what was the Copenhagen negotiating text is devoted to recommendations for agriculture’s role in mitigating greenhouse gas emissions. Furthermore, momentum is building for a work program specifically on agriculture to be established by the UNFCCC Subsidiary Body on Scientific and Technological Advice (SBSTA) in 2011. 


      Developments at The Hague and Cancún have the potential to breathe life into the climate and agriculture political agenda generally, and agriculture GHG markets in particular. Clearly, there is a great deal of political work that needs to be done in order for large-scale agricultural carbon markets to develop, but there is still an enormous amount of technical and management capacity that needs to be developed in order for these markets to thrive. Even if these meetings fail to produce a clear short-term boost to agricultural carbon markets, perhaps it will be a blessing in disguise as it will allow the practitioners time to prepare for a time, perhaps in the not-so-distant future, when agriculture will be called upon to play a significant role in mitigation.


      More details about climate change talks from the Institute for Agriculture and Trade Policy

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      » Carbon

      The REDD Opportunities Scoping Exercise for Ghana

      Forest Trends and the Katoomba Group have developed a tool, REDD Opportunities Scoping Exercise (ROSE), in order to assess how and where to carry out REDD activities in a particular country. These reports present a summary of key findings by experts in the field and an analysis of the legal and policy framework for tree and forest carbon in Ghana. A group of 20 experts came together to decide on a set of criteria for prioritizing REDD projects, and they discussed legal, institutional, and policy gaps and barriers to action. The second report shows how the current legal and regulatory structure for forestry and lands in Ghana provides indications and precedents for how carbon rights and benefits might be managed and distributed, while highlighting significant hurdles and challenges that will need to be addressed. As one of the main drivers of deforestation in Ghana, cocoa farming (and increasing productivity and income for farmers in order to avoid further deforestation) was identified as a priority target.


      ROSE Expert Workshop Report


      Implications of the Legal and Policy Framework for Tree and Forest Carbon in Ghana

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      Marubeni and Cargill Team Up to Develop Emission Reduction Projects

      While Cargill has already implemented several projects in its own processing facilities to decrease or capture greenhouse gas emissions, the agribusiness recently formed a partnership with the Japanese trading firm, Marubeni, to further its reduction projects. Cargill plans to increase its collaboration in greenhouse emissions reduction projects (such as REDD and renewable energy projects) and generate emissions reduction credits. For more information, click here.

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      The Common Market for Eastern and Southern Africa (COMESA) Supports a Carbon Trade Initiative

      COMESA plans to devote US$50 million in funding for carbon emissions trading projects in Africa this year, and increase funding over the next three years. Grant funding will specifically target farmers and private companies looking towards forestry and related land-use projects. The initiative will also provide assistance to poor and indigenous farmers who would otherwise be financially precluded from entering the carbon market. For more information, click here.

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      » Water

      Chesapeake Bay Farmers Could Benefit from Nutrient Trading

      The US Environmental Protection Agency (EPA) has placed Chesapeake Bay on their List of Impaired Waters, requiring action on the part of Bay States, Pennsylvania, Maryland, and Virginia, to restore the health of the watershed. Currently under consideration, the "Chesapeake Clean Water and Ecosystem Restoration Act of 2009" would supply resources and mitigation options towards this end. An interstate nutrient trading program is included in the proposed bill and could increase the profits of farmers who invest in cover crops, riparian buffers, and other measures to reduce nutrient loads and runoff. In theory, after meeting a baseline level, farmers could sell credits from further reductions to other polluters, such as wastewater treatment plants. World Resources Institute(WRI) conducted an analysis that determined farmers could see a potential $11,000 increase in their profits, if nitrogen were priced at $20 per pound. 

      WRI recently received additional funding from an EPA/United States Department of Agriculture (USDA) grant to continue this research into a nutrient trading scheme for Chesapeake Bay states. For more information, click here.

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      Australian Farmers to Lose Water to Restore Rivers

      The Australian government proposed allotting A$3.1 billion to buy back water rights from farmers in the Murray-Darling basin. Another A$5.8 billion would be spent to improve water-use efficiency in the basin. While many parties, including the Murray-Darling Basin Authority and environmental groups, see the necessity in such an action, farmers are concerned with the reductions in irrigation water. This could lead many to leave farming for other employment, decreasing the region’s production of food and fibre. For more information, click here

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      » Biodiversity

      Agro-Ecological Investment Management

      With considerable attention paid to agro-biodiversity conservation, this London-based investment firm specializes in the conversion of conventional agricultural lands to organic and ecological management methods. They account for ecosystem services and climate change mitigation potential in their assessment, as well as how to tap into markets for carbon, goods, and services rendered.


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      » Business and Supply Chains

      Does Eco-Certification for Organic Coffee in Costa Rica Have Environmental Benefits?

      Researchers looked at the effectiveness of “green” market pressures on realizing on-the-ground environmental improvements in an Environment for Development (EFD) analysis of the environmental performance of organically grown coffee in Costa Rica. They found that organic certification reduced coffee growers’ chemical input and increased inclusion of environmentally-sound management practices.

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      Responsible Production of Cocoa Conserves the Atlantic Forest and Generates Additional Income to Rural Workers in Brazil

      The Institute for Forest and Agricultural Management and Certification (Imaflora) has undertaken an initiative to promote sustainable cocoa, carrying out a pilot project in Southern Bahia, Brazil. This pilot will help determine an appropriate methodology for paying for ecosystem services and develop demand for cocoa. Payment for services will benefit local farmers, and reliable certification will garner support from chocolate manufacturers trying to reach the ethical cocoa market. Read more here.

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      » International

      Reducing Emissions from Deforestation Inside and Outside the "Forest"

      This policy brief from the Partnership for the Tropical Forest Margins (ASB) presents a case for reconsidering what land areas are considered for REDD payments. It argues that REDD overlooks important carbon reserves or may actually prompt a shift to emissions from a different land cover and use. Carbon stocks beyond traditional forests, such as in agro-ecosystems, are overlooked but harbor large reserves and are at considerable risk of depletion. An approach for Reducing Emissions from All Land Uses (REALU) is promoted.

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      » Australia

      Australian Carbon Trading Stalls

      As Australian elections neared, incumbent prime minister Julia Gillard pledged to institute a carbon-trading scheme for Australia. This plan would work towards reducing Australia's greenhouse gas emissions and keep the country economically competitive in a global economy that favors lower carbon intensity. A carbon credit scheme targeted for farmers made its debut mid-August in New South Wales. ABC News also reported on a Victorian Parliamentary Committee study finding that farmers should own the carbon in their soil, a critical detail that needs clarification before moving forward with a carbon market. However, a month later and after Gillard had been re-elected post, little movement has occurred in regards to implementing carbon trading. For more information, click here.

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      Australia's National Carbon Offset Standard

      Australia and New Zealand’s Science Alert recently reported on Australia’s National Carbon Offset Standard that came into effect in July 2010. While not law, this framework sets up Australian businesses, particularly farms, to earn carbon offsets in a voluntary market. Details of measuring and monitoring, setting a baseline, and variations in emission from shifting land uses are still unclear. 

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      » Ireland

      Farmers and Carbon Emissions

      In light of the European Union’s legally binding agreement to reduce carbon emissions by 20 percent by 2020, Ireland has instituted a carbon tax as an initial step. Irish agriculture is already one of the more ecologically sound in the industrialized world, but the sector is still struggling with how to meet reduction targets. There is also contention over the level of emissions reductions, considering the lack of conclusive data on what impact different measures will have. Standardizing metrics and calculation methods for carbon counting are also regarded as top priorities. For more information, click here.

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      » Canada

      Observers Cast Doubt on Carbon Credit Bill

      The Star Phoenix reported on a new greenhouse gas bill that Saskatchewan has passed. This bill may open the door for farmers to be paid for reducing emissions or sequestering carbon. A similar scheme in Alberta a few years ago benefited farmers who could sell carbon credits for conservation measures taken on the farm. However, skeptics are concerned about whether large emitters will be willing to pay for credits rather than emission-reduction projects, and if the demand for credits will be large enough to meet the supply.

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      » United States

      Chesapeake Bay Watershed States Develop a Restoration Action Plan

      States in the Chesapeake Bay watershed were found to be in violation of the Clean Water Act and are now required by the Environmental Protection Agency (EPA) to reduce the level of pollutants entering the water to a Total Maximum Daily Load (TMDL, under review) by 2025. Open for comments until October 30th, the action plan for realizing these reductions proposes funding mechanisms and activities to improve the health and vitality of the Chesapeake Bay. Included in the current action plan, are financial and technical supports for farmers in high-priority areas to implement conservation measures to curb agricultural runoff. The updated plan will take into account the flaws EPA found in the original drafts and proposed TMDLs. For more information, click here.

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      The United States Department of Agriculture (USDA) Strategic Plan for Ecosystem Markets

      USDA Office of Environmental Markets (OEM) released a plan to develop multiple markets for ecosystem services that will help ease economic hardships farmers face and protect the environment. The US Environmental Protection Agency (EPA), Bureau of Land Management (BLM), Fish and Wildlife Service (FWS), and Army Corps of Engineers would ensure compliance and accountability. USDA’s strategic plan to move forward was released in September 2010. For more information, click here.

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      » New Zealand

      The Farming Community Voices Concerns over the Proposed Emissions Trading Schemes

      New Zealand’s Farmers Weekly publication revealed the opposition of the farming community to the proposed Emissions Trading Schemes (ETS). The legislation enacted in late September 2010 will impose a carbon tax on various sectors, to be phased in over the next five years. Mandatory reporting for the agricultural sector will begin in 2012, with payment for emissions to start during 2015. As of 30th September, an eight member advisory committee has been formed to help define agriculture’s role in the ETS. Members include representatives from the pastoral sector, research groups, and Maori people.

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      Carbon Profits Grow on Trees and Kiwi Farmers Ditch Sheep

      The national emissions trading scheme in New Zealand has prompted an unintended move from sheepherding to tree-planting. While moving from methane-emitting livestock to reforesting pastureland may earn farmers money, New Zealand’s national farmers’ lobby, the Federated Farmers, argues that farmers haven’t considered the dangers of reforestation spurred on by the carbon credit market. Both articles present potential unanticipated consequences, such as impacts on local communities that rely on the livestock trade for associated jobs, increased fires, and loss of economic supports if the carbon market fails. 

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      Resources

      » Research and Publications

      Potential of Carbon Markets for Small Farmers

      This discussion paper from the International Food Policy Research Institute (IFPRI) addresses the possible place for agriculture in mitigating climate change. Besides the background information on the role of agriculture in climate change mitigation plans, the paper also clarifies the differing opportunities for agriculture in voluntary versus regulatory carbon markets. Agriculture holds great potential for carbon sequestration with good soil management and land-use practices, however, farmers face considerable barriers to entering a carbon market. Uncertainty in measurement and accounting, high transaction costs, and many other hurdles serve to bar farmers’ access to this potentially lucrative market.

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      Agriculture Greenhouse Gas Mitigation in the U.S. Publications

      The   Nicholas Institute for the Environment at Duke University issued two   papers in September on agricultural greenhouse gases. One, Greenhouse Gas Mitigation Potential of   Agricultural Land Management Activities in the U.S.: A Synthesis of   Literature, serves as an appendix to   the reports (U.S. Overview, Soil Carbon Management, and Nitrous Oxide   Emission Reduction) from the Technical Working Group on Agricultural   Greenhouse Gases (T-AGG). It provides information and comparison of the   greenhouse gas (GHG) mitigation potential of more than 40 agricultural   land management activities in the U.S.  In this document, research and   models are used to estimate the GHG mitigation potential and other   climate change impacts of field studies conducted throughout the United   States.


      A second document, Assessing Greenhouse Gas Mitigation Opportunities and   Implementation Strategies for Agricultural Land Management in the United   States, is currently   in draft form. This assessment is geared toward the feasibility of GHG   mitigation based on the technical information uncovered. The goal is to   provide a plan for including agricultural practices into government or   market-based accounting programs. The document includes comparisons of   the mitigation potential for agricultural management practices and   offers ideas for future research needs. Other   components of a carbon market scheme are provided, as well, in order to   best assist legislative bodies, government agencies, carbon market   registries or certifiers, and agricultural industry representatives.

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      Carbon Farming Handbook

      The Carbon Farming Handbook provides background on carbon in agricultural systems, as well as a guide on how to incorporate this knowledge into farming practices. Carbon Farming, as defined here, is essentially good soil management, including incorporating compost, maintaining ground cover, and fostering active soil microbes. The book also documents payment and trading resources, and advises farmers on how to enter a carbon market. The author, Michael Kiely, is a wool farmer in New South Wales and first convened the Carbon Coalition and Soil Carbon Authority. To learn more, click here.

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      Reducing Emissions through Agroforestry

      The World Agroforestry Centre released a research summary on agroforestry schemes within the REDD framework, describing them as beneficial interventions for African countries. The report provides guidelines and recommendations for pursuing REDD projects. It also stresses the need to garner the political support to set up these projects, provide people with seeds and training, and develop ways to scale up agroforestry projects to have substantial impacts on climate change mitigation.

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      Food Security through Additional Income Generation

      The Environmental Law Centre at the Internation Union for Conservation of Nature (IUCN) outlined the key activities from a recent stakeholders’ consultation held by the Food and Agriculture Organization of the United Nations (FAO). Over the course of the meeting, participants discussed how payment schemes for ecosystem services can enhance food security and addressed information on legal frameworks. Through this consultation, participants stressed the need for a common language and consistent terminology, as well as a clear definition of payment for environmental services (PES) and its role in achieving food security. The article highlighted additional feedback presented in the consultation, including the role of PES in development, the larger policy framework, and sustainability endeavors.

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      "Climate Smart" Agriculture: Policies, Practices and Financing for Food Security, Adaptation and Mitigation

      new report produced by the Food and Agriculture Organization of the United Nations discusses ways to address climate change adaptation and mitigation in agricultural landscapes. It outlines principles of sustainable production intensification, proper nutrient management, efficient harvesting and processing, and diversification to spread risk and increase resilience. Part of the report touches upon institutions and policies necessary to ensure maintained food security and agro-ecosystem integrity in the face of climate change. Financing mechanisms are a big part of this, with commentary and examples of payment for ecosystem services (sections 2.6.4 and 3.5.2).

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      » Tools

      Greenhouse Gas Calculator Connects Farming Practices with Carbon Credits

      This calculator, developed by W.K. Kellogg Biological Station researchers, allows farmers in the USA to determine the amount of greenhouse gases emitted or stored on their farm. The simple web-based application accounts for the types of crops, yields, tillage practices, and nitrogen fertilizer rates. Using localized USDA statistics, the calculator provides data on both carbon and nitrogen based gases. For more information, click here.

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      Quantifying N2O Emissions Reductions in US Agricultural Crops through Nitrogen Fertilizer Rate Reduction

      Michigan State University has developed a straightforward methodology for calculating nitrous oxide emissions reductions from alterations to farmers’ fertilizer application. The process employs IPCC tier 1 default emission factors, and it varies depending on the state in question. This methodology is a short to medium term solution to reducing N2O pollution and a precursor to the more complex modeling approaches under development.

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      New Guidelines Broaden Opportunities for Livestock Operations from Reducing GHG Emissions

      The Climate Action Reserve (CAR) has released updated guidelines for the involvement of livestock operations in carbon markets. Version 3.0 of the Livestock Project Protocol recognizes carbon crediting for capture of methane from manure and converting it to energy via biogas digesters. All livestock operations participating require third-party verification to be included in CAR’s registery of credits. A set of scoping meetings this month will focus on project types and gather feedback to inform current and develop new protocols for agricultural projects that sequester greenhouse gases.

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      Conserving Habitat Through the Federal Farm Bill: A Guide for Land Trusts and Land Owners

      Defenders of Wildlife and Potomac Conservancy issued this publication as a resource for landowners on the incentives in place with the 2008 United States Farm Bill. It is a step-through guide on choosing which conservation program makes the most sense for a farmer’s needs and how to proceed with applying for a specific program. Most of the Farm Bill programs center around wildlife and habitat protection, but several target water quality and nutrient management. 

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      Science and Technology

      Indonesia May Let Palm Oil Growers Collect CO2 Credits

      This Reuters article touches upon one of the concerns associated with the Reducing Emissions from Deforestation and Degradation (REDD) Framework as it comes up for discussion again at the climate change talks in Cancun this December. Indonesia may propose including palm oil plantations in the classification of forest, whereas others argue supporting palm oil trees with a carbon payment scheme would lead to further deforestation and monoculture plantations. 

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      Announcements and Opportunities

      Agriculture and Carbon Markets: Making Carbon Count, 10th June (California, USA), 17th June (District of Columbia, USA), and 4th - 5th October (Illinois, USA) 2010

      This set of workshops aimed to draw connections between agriculture sector, carbon market, research, policy, and investment stakeholders looking to develop carbon markets in which agriculture can play a role. Presentations, preliminary material, and reports on quantifying greenhouse gases in the agricultural sector and integrating the industry into burgeoning carbon markets are available on the workshop website

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      Carbon Farming Conference, 27th - 28th October 2010, New South Wales, Australia

      As part of Carbon Farming Week, this conference and exposition serves to familiarize farmers with the potential for carbon credits and management options they can incorporate into their own practices to generate these credits. The two-day conference included speakers on carbon and nitrogen emissions offsetting and market solutions. To visit the conference website, click here

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      Soil Carbon Coalition: Soil Carbon Challenge or World Carbon Cup

      Soil Carbon Coalition has introduced a competition to document how fast carbon can be converted into organic matter. Through a longer-term monitoring scheme, the SCC is trying to gather data from land managers across the globe to build a case for the role of soil in sequestering carbon.

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      Quivira Conference: The Carbon Ranch: Fighting Climate Change through Food and Stewardship, 10th - 12th November 2010, Albequerque, New Mexico, USA.

      This conference hosted by the Quivira Coalition, focuses on carbon sequestration strategies, with particular attention paid to food production systems. EcoAgriculture Partners’ Sara Scherr will be giving a presentation on mitigating climate change through food and land use. There is another presentation by Dr. Bill Chameides of Duke’s Nicholas School of the Environment, on carbon markets. 

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      A Community on Ecosystem Services Conference, 6th - 9th December 2010, Phoenix, Arizon, USA

      The conference presents a range of information on environmental valuation and accounting, with highlights of ecosystem services projects taking place around the world. While there are no sessions specifically on agriculture, it looks like many of the talks will touch upon that sector. To visit the conference website, click here.

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