Ross Kenyon’s Post

Thoughtful article discussing problems with agricultural carbon credit additionality and durability. Perhaps it is worth making a comparison with utility demand side management programs. If a building owner installs improved HVAC controls, the improved efficiency will be realized for a decade or more. But a grower makes management decisions every single year. A cover crop might not be viable next year due to weather. Pest pressure in 2026 might require some tillage. Maybe after experimenting with cover crops a few years, a grower decides this practice doesn’t pencil out? A crediting system built around grower decision-making has to incentivize on an annual basis. In terms of additionality, this means that even if a grower has practiced minimum tillage the past three years, there are benefits to incentivizing reduced tillage this year. Durability will come from a more general shift in practices across entire regions. Just as utility demand side management programs spurred the development and adoption of more efficient HVAC and lighting systems, carbon crediting programs can shift agricultural practices. I realize carbon markets don’t work this way at present. But to really move the needle, these programs and projects need to better align with the realities of agriculture.

The current standards that dictate financial additionality for soil organic carbon (SOC) credits could be hampering the adoption and expansion of regenerative agriculture practices. How can this framework be improved? In this new blog post, Nori’s CEO, Matt Trudeau, and Director of Methodology, Rick Berg, explain how the standards and ratings around financial additionality (and durability) for soil organic carbon credits can evolve to better support farmers and help scale the carbon removal industry. With these shifts, we can lower the barrier to entry for farmers looking to switch from conventional to regenerative farming practices, scale carbon sequestration via regenerative agriculture, and advance a key climate change solution. Read the full blog here: https://hubs.li/Q02v5c970

This is a really thoughtful piece on additionality and how our current views on this topic may negatively impact the adoption of regenerative agricultural practices across a broader set of participants. By insisting on not rewarding the early movers we may be undermining the potential to transform the entire sector, which raises the question - What exactly are we trying to achieve, and are we missing the forest for the trees? I am working on a report that will unpack some of these issues and provide some suggestions on a way forward. Certainly the thinking in this piece helps frame the challenge. Thx for putting this together Matt and the team at Nori.

"Spend $2,500,000 to upgrade your farm and maybe you will see revenue from future carbon credit sales". This model of do-first-get-paid-later has become the norm in the carbon markets, and while it might make sense for some project types, it just doesn't work for farmers, who are already barely making ends meet. In fact, more than 50% of US farms are operating at a net-income loss. So much of the current #vcm guidelines take a one-size-fits-all approach and the cracks are starting to show. This approach punishes those who did the right thing (e.g. regenerative farming) before they knew they could profit, and creates an almost insurmountable barrier to entry for new market participants. Why does this matter? In 2023 the world removed 4.5 million tonnes of CO2. Sounds like a lot, right? Sure, until you put that number against the more than 10 billion tonnes of CO2 we will need to remove in order to mitigate climate change (enter doom and gloom headlines). Here's an idea. What if the primary function of VCM guidelines was to scale quality CO2 removal, full stop. Shouldn't that be the real goal here? 🤔

When I first encountered 'financial additionality' as a concept applied to carbon removal credits it intuitively seemed to compound the "cold start problem" of building a new market. Why manufacture an unnecessary obstacle to liquidity before you've even started? My intuition was confirmed after the Nori supply and methodology team took me through the economics of American farming. I wanted to understand the obstacles and risks preventing farmers from adopting regenerative practices, and entering the voluntary carbon market (#VCM); only about 13.5 million acres of the 900 million acres of arable land in the US is regeneratively farmed. In this blog post Rick Berg and I make the case for why the academic concept of financial additionality doesn't make sense in practice if our end goal is to achieve systemic change to regenerative practices in agriculture, and to harness the potential of soil as a store of carbon by helping farmers generate revenue from the VCM.

With over 60% of all EU soils estimated to be degraded, we must act swiftly to chart a course toward a more sustainable agriculture. At McCain, we passionately advocate for regenerative agriculture as a key proven and versatile solution and have embraced it, committing to 100% potatoes coming from reg ag practices by 2030. For this solution to be scaled, we need the EU to urgently support its deployment through a robust regulatory framework, incentives and support. #RegenerativeAg #SustainableFuture https://lnkd.in/gdm8c2xw

🗣✏️ Regenerative agriculture is an approach to farming that focuses on revitalizing and strengthening the health of the land and its ecosystems by prioritizing practices that promote soil health, biodiversity, and carbon sequestration while reducing the reliance on synthetic chemical pesticides and fertilizers. The economic and environmental incentives, along with the clear connection between the quality of food and our health, all point to a bright future for regenerative farming. https://lnkd.in/d9HyFK4b

Regenerative agriculture, an outcomes based approach to agroecological food and fiber production! "In a review of 229 peer-reviewed articles and 25 practitioner websites, Newton et al. (2020) found that the most common description of regenerative agriculture was outcome-based, namely the outcome of improving soil health including soil organic matter, mentioned by 86% of practitioners ... Sixty-four percent of practitioners mentioned increased soil carbon sequestration specifically (Newton et al., 2020)." From a new paper on the diversity of outcomes that result from regenerative agricultural practices by Harvard. Hence- we need to measure these outcomes. Agrology, a Public Benefit Corporation is here to help. We provide rapid feedback on the impact of regenerative practices by measuring carbon changes in the gas phase (ie: CO2 gas flux). This provides an incredible window into how your practices are improving (or degrading) microbial activity and the carbon cycle. Reach out if you would like to learn more https://lnkd.in/gti4SZHh

Agricarbon's innovative approach to soil carbon measurement and Regenerate Outcomes’ carbon credit generation is the focus of a recent article in Direct Driller Magazine. Our MRV methods, rooted in scientific accuracy and cost-effectiveness, evidences the changes made by projects producing high-value carbon credits, which in turn, supports the transition to regenerative agriculture. Working this way, with businesses like Regenerate Outcomes, is set to promote sustainable farming practices in the UK. This initiative, underpinned by the Verra Carbon Standard (and in partnership with Understanding Ag, LLC - Experts in Regenerative Ag and 3LM, Land and Livestock Management for Life), aims to create sustainable, long-term value for farmers. Looking ahead, Regenerate Outcomes anticipates selling its first batch of verified carbon credits in 2024/25, marking a significant step towards resilient, productive, and biodiversity-enhancing agriculture in the UK. Read more about the journey and the promising future of soil carbon as a revenue stream below. #regenerativeagriculture #soilcarbon #carbonoffsets #carboncredits #soil #ghgprotocol #agriculture #farming https://lnkd.in/dax7X_em

FOODCHAIN ID AND RESEED ANNOUNCE NEW SOIL CARBON METHODOLOGY THAT REWARDS FARMERS FOR BOTH SOIL ORGANIC CARBON MAINTENANCE AND REMOVAL OF EMISSIONS The Soil Carbon Methodology rewards farmers not only for maintaining existing soil organic carbon built through sustainable farming practices, but also for the removal and storage of additional carbon dioxide emissions by soils. The Soil Carbon Methodology is the first program on the market to offer these two key benefits, while also making voluntary carbon markets accessible for vulnerable and small farmers to scale agriculture climate initiatives worldwide. #sustainability #sustainableagriculture #sustainableag #foodchainid #reseed FoodChain ID ReSeed.farm https://lnkd.in/gTEFAmbm