climate change farm impacts and farm solutions north american-european union conference north...

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

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

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

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


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


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


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

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


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

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 [email protected]@ofa.on.ca

climate change farm impacts and farm solutions north american-european union conference north...

Documents

edible oilsbeef days

feedbeef age

small hydrobiomass

increased costs

relevant area

offsetsnew revenue stream

eventual harmonization

societyadded voice