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Climate ChangeClimate ChangeFarm Impacts andFarm Impacts and
Farm SolutionsFarm Solutions
North American-European Union ConferenceNorth American-European Union ConferenceNorth American PerspectiveNorth American Perspective
Don McCabeDon McCabeOctober 21, 2009October 21, 2009
Presentation OutlinePresentation Outline Farm Gate ImpactFarm Gate Impact
Canadian Farm SolutionsCanadian Farm Solutions
Canada’s Federal ApproachCanada’s Federal Approach
Canada’s Provincial ApproachCanada’s Provincial Approach
U.S. PoliticsU.S. Politics
Global WorkGlobal Work
The Canadian BiosphereThe Canadian Biosphere
Ag Sector ImpactsAg Sector Impacts(Why care?)(Why care?)
Increased costs for electricity, Increased costs for electricity, chemicals, fuel, fertilizer, lime chemicals, fuel, fertilizer, lime (largest increases any sector will (largest increases any sector will face)face)
Voluntary opportunity for ag to Voluntary opportunity for ag to establish a new revenue streamestablish a new revenue stream
Global competition and eventual Global competition and eventual harmonization harmonization
Same analysis in United StatesSame analysis in United States
Presentation OutlinePresentation Outline Farm Gate ImpactFarm Gate Impact
Canadian Farm SolutionsCanadian Farm Solutions
Canada’s Federal ApproachCanada’s Federal Approach
Canada’s Provincial ApproachCanada’s Provincial Approach
U.S. PoliticsU.S. Politics
Global WorkGlobal Work
Management ToolsManagement ToolsFor GovernmentFor Government
Cap & Trade with OffsetsCap & Trade with OffsetsNew revenue stream to offset costs for New revenue stream to offset costs for
farmersfarmers
Carbon TaxCarbon TaxAdded cost with no deferral for a Added cost with no deferral for a
primary sectorprimary sector
Canadian AgricultureCanadian Agriculture10% the Problem, 20% the solution!10% the Problem, 20% the solution!
Two SolutionsTwo Solutions
Emission Emission ReductionsReductions
Adoption of Adoption of technology and technology and management that management that reduce GHG reduce GHG emissionsemissions
Permanent in Permanent in naturenature
Emission RemovalsEmission Removals Carbon SinksCarbon Sinks Created and Created and
maintained by maintained by managementmanagement
Not permanent, but Not permanent, but reversible (handled reversible (handled in current protocols)in current protocols)
C sequestration as a Commodity
Sell Credits
Maintenance Liability
Repurchase
Credits
Tillage ProtocolTillage Protocol• Variables required based on farm location / dominant soil Variables required based on farm location / dominant soil
zone:zone:• Reduction Factor / Sequestration Factor For Relevant Till Practice in Reduction Factor / Sequestration Factor For Relevant Till Practice in
Relevant Area and Geographic ZoneRelevant Area and Geographic Zone
Map of Soil Zones
RegionRegionTillage Tillage ChangeChange
10 year CO2E10 year CO2E
(t CO2E / ha)(t CO2E / ha)
EnergyEnergy
(t CO2E / ha)(t CO2E / ha)
EastEast
FT to NTFT to NT 0.250.25 0.16490.1649
FT to RTFT to RT 0.200.20 0.11860.1186
RT to NTRT to NT 0.080.08 0.04630.0463
NT to FTNT to FT -0.25-0.25 -0.1649-0.1649
RT to FTRT to FT -0.20-0.20 -0.1186-0.1186
NT to RTNT to RT -0.08-0.08 -0.0463-0.0463
EastEast
CentralCentral
FT to NTFT to NT 0.410.41 0.16490.1649
FT to RTFT to RT 0.160.16 0.11860.1186
RT to NTRT to NT 0.260.26 0.04630.0463
NT to FTNT to FT -0.41-0.41 -0.1649-0.1649
RT to FTRT to FT -0.16-0.16 -0.1186-0.1186
NT to RTNT to RT -0.26-0.26 -0.0463-0.0463
Ag Policy NeedsAg Policy Needs
Ownership of creditsOwnership of credits Credit value retention Credit value retention Protocol development (research Protocol development (research
needed or available)needed or available) Communication to farmers and Communication to farmers and
societysociety Added voice to policy development Added voice to policy development
Eligible Project TypesEligible Project Types AgriculturalAgricultural
Beef Feeding – Edible OilsBeef Feeding – Edible Oils Beef – Days on FeedBeef – Days on Feed Beef – Age at SlaughterBeef – Age at Slaughter Anaerobic DigestorsAnaerobic Digestors Pork – Manure and FeedingPork – Manure and Feeding TillageTillage
Energy EfficiencyEnergy Efficiency Energy EfficiencyEnergy Efficiency Waste Heat RecoveryWaste Heat Recovery Buildings (Residential and Buildings (Residential and
Industrial/Commercial)Industrial/Commercial) ForestryForestry
AfforestationAfforestation Forest Management Forest Management
(CCAR)(CCAR) Fossil Fuel Based EnergyFossil Fuel Based Energy
Fuel SwitchingFuel Switching Geological SequestrationGeological Sequestration
Acid Gas InjectionAcid Gas Injection Enhanced Oil RecoveryEnhanced Oil Recovery
Methane ManagementMethane Management Landfill Gas Landfill Gas Coal Bed/Mine/Ventilation MethaneCoal Bed/Mine/Ventilation Methane CompostingComposting Aerobic Landfill BioreactorAerobic Landfill Bioreactor Wastewater TreatmentWastewater Treatment
Renewable EnergyRenewable Energy Wind, Solar, Small HydroWind, Solar, Small Hydro Biomass to EnergyBiomass to Energy District HeatingDistrict Heating
TransportationTransportation Road RehabilitationRoad Rehabilitation Modal ShiftingModal Shifting
Waste ManagementWaste Management Reusing flared well gasReusing flared well gas Non-incineration thermal waste Non-incineration thermal waste
managementmanagement OtherOther
NN22O abatementO abatement BiofuelsBiofuels
Prioritization Needed
Eligible Project TypesEligible Project Types AgriculturalAgricultural
Beef Feeding – Edible OilsBeef Feeding – Edible Oils Beef – Days on FeedBeef – Days on Feed Beef – Age at SlaughterBeef – Age at Slaughter Anaerobic DigestorsAnaerobic Digestors Pork – Manure and FeedingPork – Manure and Feeding TillageTillage
Energy EfficiencyEnergy Efficiency Energy EfficiencyEnergy Efficiency Waste Heat RecoveryWaste Heat Recovery Buildings (Residential and Buildings (Residential and
Industrial/Commercial)Industrial/Commercial) ForestryForestry
AfforestationAfforestation Forest Management Forest Management
(CCAR)(CCAR) Fossil Fuel Based EnergyFossil Fuel Based Energy
Fuel SwitchingFuel Switching Geological SequestrationGeological Sequestration
Acid Gas InjectionAcid Gas Injection Enhanced Oil RecoveryEnhanced Oil Recovery
Methane ManagementMethane Management Landfill Gas Landfill Gas Coal Bed/Mine/Ventilation MethaneCoal Bed/Mine/Ventilation Methane CompostingComposting Aerobic Landfill BioreactorAerobic Landfill Bioreactor Wastewater TreatmentWastewater Treatment
Renewable EnergyRenewable Energy Wind, Solar, Small HydroWind, Solar, Small Hydro Biomass to EnergyBiomass to Energy District HeatingDistrict Heating
TransportationTransportation Road RehabilitationRoad Rehabilitation Modal ShiftingModal Shifting
Waste ManagementWaste Management Reusing flared well gasReusing flared well gas Non-incineration thermal waste Non-incineration thermal waste
managementmanagement OtherOther
NN22O abatementO abatement BiofuelsBiofuels
Prioritization Needed
Presentation OutlinePresentation Outline Farm Gate ImpactFarm Gate Impact
Canadian Farm SolutionsCanadian Farm Solutions
Canada’s Federal ApproachCanada’s Federal Approach
Canada’s Provincial ApproachCanada’s Provincial Approach
U.S. PoliticsU.S. Politics
Global WorkGlobal Work
Federal PositionFederal Position(Oct 6, 2009; Cdn Council of Chief Executives)(Oct 6, 2009; Cdn Council of Chief Executives)
20% reduction from 2006 levels by 202020% reduction from 2006 levels by 2020 North American economy integration requires North American economy integration requires
harmonizationharmonization
““We will set up our own cap and trade We will set up our own cap and trade market……..easily integrated into North American market……..easily integrated into North American Market.”Market.”
“…“….we’ll phase in measures…in alignment with .we’ll phase in measures…in alignment with the development of the proposed U.S. system.”the development of the proposed U.S. system.”
Fruitful global discussions at CopenhagenFruitful global discussions at Copenhagen
Eligible Project TypesEligible Project Types AgriculturalAgricultural
Beef Feeding – Edible OilsBeef Feeding – Edible Oils Beef – Days on FeedBeef – Days on Feed Beef – Age at SlaughterBeef – Age at Slaughter Anaerobic DigestorsAnaerobic Digestors Pork – Manure and FeedingPork – Manure and Feeding TillageTillage
Energy EfficiencyEnergy Efficiency Energy EfficiencyEnergy Efficiency Waste Heat RecoveryWaste Heat Recovery Buildings (Residential and Buildings (Residential and
Industrial/Commercial)Industrial/Commercial) ForestryForestry
AfforestationAfforestation Forest Management Forest Management
(CCAR)(CCAR) Fossil Fuel Based EnergyFossil Fuel Based Energy
Fuel SwitchingFuel Switching Geological SequestrationGeological Sequestration
Acid Gas InjectionAcid Gas Injection Enhanced Oil RecoveryEnhanced Oil Recovery
Methane ManagementMethane Management Landfill GasLandfill Gas Coal Bed/Mine/Ventilation MethaneCoal Bed/Mine/Ventilation Methane CompostingComposting Aerobic Landfill BioreactorAerobic Landfill Bioreactor Wastewater TreatmentWastewater Treatment
Renewable EnergyRenewable Energy Wind, Wind, Solar, Small HydroSolar, Small Hydro Biomass to EnergyBiomass to Energy District HeatingDistrict Heating
TransportationTransportation Road RehabilitationRoad Rehabilitation Modal ShiftingModal Shifting
Waste ManagementWaste Management Reusing flared well gasReusing flared well gas Non-incineration thermal waste Non-incineration thermal waste
managementmanagement OtherOther
NN22O abatementO abatement BiofuelsBiofuels
Presentation OutlinePresentation Outline Farm Gate ImpactFarm Gate Impact
Canadian Farm SolutionsCanadian Farm Solutions
Canada’s Federal ApproachCanada’s Federal Approach
Canada’s Provincial ApproachCanada’s Provincial Approach
U.S. PoliticsU.S. Politics
Global WorkGlobal Work
Provincial ResponsesProvincial Responses
British ColumbiaBritish Columbia Carbon tax effective July 1, 2008Carbon tax effective July 1, 2008
Increase from 2.4 to 3.6cents/l of gas 07/01/09Increase from 2.4 to 3.6cents/l of gas 07/01/09 currently requesting offsets currently requesting offsets member of Western Climate Initiative member of Western Climate Initiative
(WCI)(WCI) WCI participants include 7 western U.S. WCI participants include 7 western U.S.
States and some Canadian provincesStates and some Canadian provinces
Provincial ResponsesProvincial Responses
AlbertaAlberta legislation in effect requiring an legislation in effect requiring an
intensity based reduction of 12% intensity based reduction of 12% starting July 1, 2007 by firms starting July 1, 2007 by firms emitting more than 100,000 tonnes emitting more than 100,000 tonnes of GHG’s/yrof GHG’s/yr
compliance by internal reductions, compliance by internal reductions, $15/MT to tech fund, and offsets$15/MT to tech fund, and offsets
Provincial ResponsesProvincial Responses
AlbertaAlberta Recent update workshop on progress of Recent update workshop on progress of
system held June 22system held June 22 5 million tonnes of offsets created mid 5 million tonnes of offsets created mid
2007 to end of 2008 (1.5 million from soil 2007 to end of 2008 (1.5 million from soil tillage)tillage)
Alberta government will look at raising Alberta government will look at raising tech fund cost, more protocols, and lower tech fund cost, more protocols, and lower limit of emissions for compliance in the limit of emissions for compliance in the futurefuture
Provincial ResponsesProvincial Responses
OntarioOntario Newest member of WCINewest member of WCI Consultation on a cap and trade system Consultation on a cap and trade system
for Ontario recently heldfor Ontario recently held Offsets recognizedOffsets recognized Coal fired electricity plants gone by 2014Coal fired electricity plants gone by 2014 Green Energy Act (credits?)Green Energy Act (credits?) Currently exploring ag credits with pilotsCurrently exploring ag credits with pilots
Presentation OutlinePresentation Outline Farm Gate ImpactFarm Gate Impact
Canadian Farm SolutionsCanadian Farm Solutions
Canada’s Federal ApproachCanada’s Federal Approach
Canada’s Provincial ApproachCanada’s Provincial Approach
U.S. PoliticsU.S. Politics
Global WorkGlobal Work
Canada U.S. Policy GroupsCanada U.S. Policy Groups
Western Climate Initiative (WCI)Western Climate Initiative (WCI)
Midwest Greenhouse Gas Regional Midwest Greenhouse Gas Regional Accord (MGGRA)Accord (MGGRA)
Regional Greenhouse Gas Initiative Regional Greenhouse Gas Initiative (RGGI)(RGGI)
Comparison with Other SystemsComparison with Other SystemsWaxman Markey – US EPA AnalysisWaxman Markey – US EPA Analysis
24EPA Analysis of H.R. 2454, Total GHG Emissions & Sources of Abatement
June 23 2009
Comparison with Other SystemsComparison with Other SystemsWaxman Markey US Coverage & Waxman Markey US Coverage &
OffsetsOffsets
25
Offset PotentialOffset Potential
U.S. PoliticsU.S. Politics
A north of the border perspective!A north of the border perspective! Obama wants a cap and trade Obama wants a cap and trade
systemsystem Waxman Markey is through CongressWaxman Markey is through Congress Senate needs its bill and is usually Senate needs its bill and is usually
farm friendlyfarm friendly Final say in the Senate is 60 for Final say in the Senate is 60 for
domestic, 66 for internationaldomestic, 66 for international
Presentation OutlinePresentation Outline Farm Gate ImpactFarm Gate Impact
Canadian Farm SolutionsCanadian Farm Solutions
Canada’s Federal ApproachCanada’s Federal Approach
Canada’s Provincial ApproachCanada’s Provincial Approach
U.S. PoliticsU.S. Politics
Global WorkGlobal Work
Soil Carbon OffsetsSoil Carbon Offsets Soil carbon as an offset is recognized Soil carbon as an offset is recognized
across compliance systems (Alberta, across compliance systems (Alberta, Canada ?, WCI (7 states, 4 provinces)) Canada ?, WCI (7 states, 4 provinces))
Further expansion across the global Further expansion across the global market is necessary (Daniel Martino market is necessary (Daniel Martino Winnipeg March 16)Winnipeg March 16)
Bonn, Germany Ag workshop April 4Bonn, Germany Ag workshop April 4 Copenhagen IFAP Workshop May 27Copenhagen IFAP Workshop May 27 Copenhagen Talks DecemberCopenhagen Talks December
IPCC 2007: Agricultural IPCC 2007: Agricultural production fallsproduction falls
UNDP, 2007
Capturing Canada’s Green Capturing Canada’s Green
Advantage: Biosphere SolutionsAdvantage: Biosphere Solutions
CO2
Fossil Fuels
Biomass
(N2O, CH4)
SEQUESTER Atmospheric C & solar energy into biomass.
REDUCE CH4 & N2O associated with biosphere management
ADAPT biosphere to changing climate & atmosphere
…
… the improved management and use of our biological cycles to provide environmental values, energy, chemicals and materials (the Bioeconomy) in addition to food, feed and fibre.
COMPLEMENT fossil energy (&
chemicals, materials) with biomass
Capturing Capturing “The World’s”“The World’s” Green Green
Advantage: Biosphere SolutionsAdvantage: Biosphere Solutions
CO2
Fossil Fuels
Biomass
(N2O, CH4)
SEQUESTER Atmospheric C & solar energy into biomass.
REDUCE CH4 & N2O associated with biosphere management
ADAPT biosphere to changing climate & atmosphere
…
… the improved management and use of our biological cycles to provide environmental values, energy, chemicals and materials (the Bioeconomy) in addition to food, feed and fibre.
COMPLEMENT fossil energy (&
chemicals, materials) with biomass
Thank youThank you
Questions?Questions?
Don McCabeDon McCabedon.mccabe@ofa.on.cadon.mccabe@ofa.on.ca
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