The contents of this page are no longer available.Alberta Carbon Offset Market Shows an Increase in 2008 Government of Alberta, Alberta Agriculture and Rural Development Government of Alberta, Alberta Agriculture and Rural Development, Policy and Environment, Environmental Stewardship, Agri-Environmental Management, Land Use Government of Alberta, Alberta Agriculture and Rural Development 2009-05-20 2009-11-06 Soil/Water/Air`Air`Greenhouse Gases A review of progress in registered carbon offsets sold by agricultural operations since 2007 resulting in financial gain in the agricultural community eng news publication 2009-05-20 Cereal Producer;Forage Producer;Land Managers;Oilseed Producer;Producers (Crops) www1 newslett agnw 2009-11-20
 

Alberta Carbon Offset Market Shows an Increase in 2008

 
  From the May 25, 2009 Issue of Agri-News
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“It is important to remember that management practices that producers began in Alberta as early as 2002 can be used to apply for offsets as long as the management practice can be verified and it complies to Alberta Government approved protocol,” says Kerrianne Koehler-Munro, climate change program planner with Alberta Agriculture and Rural Development, Edmonton.

The amendment to the Specified Gas Emitters Regulation (SGER) came into effect on July 1, 2007, and the following six months marked the first compliance period. The second compliance period was the 2008 calendar year. Alberta facilities that produce more than 100,000 tonnes of carbon dioxide equivalence (CO2e – all greenhouse gases represented in a common unit) per year have to reduce their emission intensity by 12 per cent annually. They had until March 31, 2009, to file their accounts and settlements with the regulator, Alberta Environment for the 2008 compliance period.

“These Alberta facilities have three options to meet their reduction: pay into the Tech Fund at $15/tonne of CO2e; trade Emission Performance Credits and/or; purchase offset credits from approved voluntary projects in Alberta,” says Koehler-Munro. “These first two compliance periods have shown that the market is developing and there has been an increase in demand for the carbon offsets, and that’s good news for producers who have offset credits to sell.”

This past year there has been an increase of offsets registered and retired compared to the six months of compliance in 2007. In 2008, there were 25 projects registered, totaling 3.5 million tonnes CO2e, compared to seven projects in 2007. Ten of the 25 projects in 2008 were agriculture tillage (minimal and no-till) projects.

“In the year and a half timeframe of these two compliance periods, approximately five million tonnes of offsets were registered and approximately 1.5 million tonnes, or 30 per cent, came from agriculture tillage offsets. There is no price discovery in this market; however, it has been suggested that the offsets sold between $11 and $13.50 per tonne this past year. A rough estimate of value at $11 a tonne would equal approximately $11 million being paid back to the agriculture sector in 2008. This suggests that agriculture is in the market and can, and is, receiving financial gain from this new intangible commodity.”

More information on the carbon offset market is available online at www.carbonoffsetsolutions.ca or www.agriculture.alberta.ca

Contact:
Kerrianne Koehler-Munro
kerrianne.koehler-munro@gov.ab.ca
780-427-3628
 
 
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For more information about the content of this document, contact Kerrianne Koehler-Munro.
This document is maintained by Rita Splawinski.
This information published to the web on May 20, 2009.