Frequently Asked Questions About Carbon Management
1. What Exactly Is Carbon Management?
Carbon management is the process of managing, and minimising over time, carbon emissions (and the total carbon footprint) of a farm or group of farmers. It requires measurement (or evaluation) of carbon emissions at a point in time and proactive management, to reduce them. Methods of measurement and evaluation are being refined, and are now available to farmers and groups or an entire supply chain.
2. Does This Mean An Organic Farming Future?
Some organic farming practices are more environmentally sustainable, but organic livestock and manures still produce emissions. It is also claimed that organic farming would not be sufficiently productive to feed the world's growing population. The optimal solution cannot be considered simply in terms of organic or non-organic.
3. What is Carbon Trading?
‘Carbon trading’ involves the trading of permits to emit carbon dioxide (and other greenhouse gases, calculated in tonnes of carbon dioxide equivalent, tCO2e).
Participating companies are allocated permits (allowances), in tonnes of the relevant emission (carbon dioxide equivalent). A company that emits less than its allocation of allowances can sell its surplus allowances. Companies may emit in excess of their allocation of allowances by purchasing additional allowances.
To date, emissions trading covers heavy industries and power generation. Agriculture is currently excluded, but Defra has indicated that consideration may be given to a carbon trading scheme for the land based industries. This might operate through a system of carbon accounts and allowances for individual businesses that would take into account net emissions, or sequestrations, values.
At current values, carbon trade for individual farmers would not be significant, but this may change in the future. In the meantime, there are cost benefits to be gained by farmers from using their inputs more efficiently, which will help reduce carbon emissions.
4. How Can Farmers Manage Carbon Emissions?
We see three main strands of carbon management on which farmers can take action. All provide opportunities to contribute to farm profitability:
- a. Fuel efficiency to reduce consumption
- b. Production of energy crops to replace fossil fuels
- c. Managing wastes (including manures and composts) to reduce impact
5. What Are The Opportunities for Co-operation?
Co-operation will be essential in enabling agriculture to effectively manage carbon emissions, and has many proven and potential applications. All these solutions contribute to value and profits;
- a. Using machinery rings, or joint venture farming, to increase efficiency of machinery and fuel use
- b. Membership of a professional marketing group that interfaces with a group of farmers and the rest of the supply chain to meet customers' demands and help manage the total chain carbon footprint
- c. Group production and marketing of renewable fuel crops, and development of supply chains
- d. Group investment in electricity, heat, or biofuel production to add value
- e. Group approach to research and development, and innovation
6. Are We Behind Europe?
The UK has some way to go to catch up with other parts of Europe and the world. There are many examples of successful and long established co-op heat and power plants, biogas plants, wind farms, and bio-ethanol and bio-diesel plants, in other countries.
Scandinavia, Germany, Austria and Switzerland have many successful co-ops. The USA is rapidly expanding its farmer co-op bio-ethanol and bio-diesel output, whilst the first such developments have started in the UK (see case studies page).
A critical factor in the Scandinavian countries was a proactive policy, implemented in the wake of the oil crisis of the 1980s, to reduce dependence on oil. This created a market for renewable energy in its various forms, and growers responded to the opportunity. The policy environment in the UK has introduced some incentives for renewables (including a target of 5% 'renewable' fuel inclusion in road fuel by 2010), and more incentives are expected over time.
7. How Do Farmers Start to Address Carbon Management?
It's not really so different to developing any other commercial opportunity. If you are a farmer or grower and want to consider the opportunities from a group perspective, or you are a director, member, potential member or manager of an established co-op or group, then get in touch with us. We will be able to discuss your commercial opportunities drawing on our knowledge and experience within the UK and Europe. We can assist with market and technical research and development of your proposition, help create a group and supply chain, and identify sources of grant support.