Agricultural Protocols within the Alberta Offset System

Tom Goddard, Agriculture & Rural Development

June 17, 2010, Washington DC

Alberta Overview

Energy: 86% of emissions in Alberta• Most electricity generated from coal• Oil and natural gas• Oilsands represent 13% of total global

reserves, less than 10 % of global emissions, 18% of Allberta’s emissions

Agriculture: 8% of emissions in Alberta• Rainfall 300 to 450 mm (12 to 18 in) • Average temperatures of – 24 0C

in Jan to 24 0C in July (-11 to 75 0F) • 53 M ac farmland• 1/3 of Canada’s agricultural land• Small grains, oil seed, pulses• 40% of Canada’s beef, $ 1.8 M exported in ‘08• Irrigation - potatoes, sugar beets, sp crops

2006

2020

Alberta’s GHG emissions in the Canadian context

Carbon Market Context: Canada and AB

1997 – National Table GHG Reduction – Agricultural Sinks 1990’s – National collaboration GHG research 2002 / 3 – Alberta initiated Climate Change Action Plan

– Specified Gas Emitters Regulation (SGER)– Applies to all facilities producing over 100,000 t CO2e per year – Required to report average emission intensities– Pork Protocol

2007 – Alberta amended SGER legislation to require mandatory emission intensity reductions of 12% per year - Applies to 103 facilities3 options:

i. Reduce emissions, trade performance creditsii. Pay Climate Change Emissions

Management Corporation at $15 / T CO2e i. Purchase offsets

Oil Sands18%

Power Plants48%

Forest Products

0.5%

Other12%

Gas Plants8%

Heavy Oil7%

Chemicals7%

Profile of AB companies emitting more than 100,000 T CO2e / yr

Alberta Approach

• Long term issue – Need to start with practical, achievable objectives

• Policy certainty for industry– Large investments being made now – expensive to retrofit,

investment is for 40 years+• Implementation of new technology will be a big part of the

long-term solution.– Linked to our unique role as North America’s energy supplier

• Market instruments - bridge gap between current emissions and long-term solutions.

• All Albertans must be part of the solution• Requires strategic and focused investment in transformational

changes (technology, behavioral)• Remain globally competitive

Alberta Government Approved Protocols

– Offset must be quantifiable, real, verifiable– ISO 14064-2 compliant– Science-based– Rigorous technical review – Internationally compatible – Streamlined use– Transparent and consistent – Verifiable by independent 3rd party– Reduced costs and administration– Provides certainty for investors – GHG tonnes reduced– Of 28 protocols currently approved, 10 are agricultural

Alberta Protocol Development ProcessCheck Carbon Offset Solutions website for

draft protocols, protocols under development

Develop & compile Technical Seed Document(s) (TSD) for protocol foundation

Prepare Technical Protocol Plan (TPP)

Submit TPP & TSDs to Alberta Government for review

Provide feedback to protocol developers – 60 days*

Adapt into Alberta protocol format (Standardization)

1st round of reviews – expert technical reviewNo sustained objections, then move forward.

2nd round of reviews – broader stakeholder reviewNo sustained objection, then move forward

3rd round of reviews – posting for public review30 days

Finalization of protocol & review of public comments by Alberta Environment**

Government approval & posting of protocol

2-10mo

4-6mo

10-30days

1-2mo

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2

3

4

5

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7

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9

10

11

Protocol Developer

Alberta Government

Protocol Developer

Coordination by Climate Change Central (C3)

“All parties involved”

Alberta Government

Agricultural Protocol Topics and Stages

Approved: Reduced Tillage Pork Beef - Days on Feed Beef – Lifecycle Beef - Edible Oils Energy Efficiency Afforestation Biomass Biogas Dairy

National in scope

In Review: • Summerfallow• Beef - Residual Feed Intake • Nitrous Oxide Emission

Reduction

Developing: • Conversion to Perennials• Pasture Management• Wetlands Restoration and

Preservation • Covered Manure Storage

Reduced Tillage Protocol

• Applies to annual crops

• Equipment definition

• - Geometry – opener width / spacing

• Dry Prairie versus Parkland boundary

• Soil C sequestration coefficient, N20 and energy coefficients drawn from research compiled for Canada’s GHG Inventory Methodologies (Tier II)

• Discounted baseline adjustment allocates incremental rates of new carbon sequestered to early adopters

• Soil C sequestration coefficient also discounted for:

– Risk of reversals using probability of reversal (10 – 12%)

– Assurance based on tonnes registered, now 0.4 Mt CO2e

• Revised every 5 years as new research informs

Zones of soil carbon change coefficients

Experiences Implementing Reduced Tillage Protocol

Successes • Relatively easy to apply, large interest and uptake

• 3.2 M T CO2e registered since July 1, 2007

• 41% of all offsets used for compliance in 2009

• 15% of total GHG reductions required by SGER

• Range from $ 8 – $ 12 / T CO2e in ’09 to $10 - $14 in ‘10

Challenges• Guidance – practical use of protocol, e.g. crop yr vs calendar yr

• Ownership – must be specified in contracts

• Verification – types of farm records vs digital data

Opportunities• Supports continuous improvement, accelerated practice change

• Knowledge is transferrable to other environmental attributes that need verification data, e.g. certification, footprinting

Manure as Soil Amendment, Injection

Fuel Use Efficiency, Irrigation Swath Grazing Crop Nitrogen Use EfficiencyBiofibresOther …. Beef LCA “hotspots”?

Future Protocol Possibilities