SOIL
CARBON AND CLIMATE CHANGE NEWS From Kansas State University's: Consortium for Agricultural Soils Mitigation of Greenhouse Gases (CASMGS) http://www.oznet.ksu.edu/ctec
Charles W. Rice, K-State Soil Microbiology, National CASMGS Coordinator (785) 532-7217 cwrice@ksu.edu Kent McMay, K-State Soil and Water Conservation Specialist (785) 532-5776 kmcvay@ksu.edu Steve L. Watson, CASMGS Communications (785) 532-7105 swatson@oznet.ksu.edu
March 4, 2003 No. 15
This week's issue:
Science: * Woods Hole Oceanographic Institution Links Sea-Based Methane To Warming
Kansas: * Carbon Credit Pilot Project In Kansas
National: * Energy Company Enters Into CO2 Offset Agreement * Conference On Corporate Strategies To Address Climate Change Issues
International: * U.K Energy Policy Questioned
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Woods hole oceanographic institution Links Sea-Based Methane to Warming
Researchers at the Woods Hole Oceanographic Institution (WHOI) recently released a new report that identifies a direct link between methane reservoirs found in coastal marine sediments and the global carbon cycle. According to the WHOI scientists, molecular fossils derived from methane-consuming bacteria found in sediments off the coast of California and deposited 12,000 to 70,000 years ago indicate that "large quantities of methane were emitted repeatedly from the seafloor during warmer phases of the last ice age."
"The large amounts of methane presumably released during one event about 44,000 years ago suggest a mechanism different from those underlying the emissions at warmer periods, [that is] slow decomposition of methane hydrate triggered by warming of bottom water," said WHOI researcher Kai-Uwe Hinrichs. "The sudden release of these enormous quantities of methane was probably caused by landslides and melting of the methane hydrate."
WHOI said the researchers examined fossil remnants of bacteria that would have only flourished under high concentrations of methane, including one that "provided evidence for an abrupt, catastrophic release of methane, presumably trapped as hydrate below the sea floor."
"Although this research tells us something about the amount of methane consumed by bacteria in the ocean, it doesn't tell us anything about methane emissions into the atmosphere," said Hinrichs. "But one thing is for sure, our results clearly show that relatively minor environmental changes can have a major impact on sensitive coastal regions with yet unknown consequences for climate and biota."
For more details, check the website at: www.whoi.edu
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CARBON CREDIT PILot project in kansas
The first generation carbon credit trading pilot project is gearing up to begin this summer, and agricultural producers in Kansas will be eligible to participate.
Michael Walsh, senior vice president of Chicago Climate Exchange, explained the current status of the project at the February 28, 2003 meeting of the Kansas Coalition for Carbon Management at the Kansas Farm Bureau headquarters in Manhattan.
The Chicago Climate Exchange (CCX) is a voluntary pilot greenhouse gas trading program for emission sources and offset project, primarily in the U.S. Some of the entities involved in establishing the CCX include DuPont, Motorola, Ford Motor Company, International Paper, American Electric Power, MeadWestvaco, Waste Management Inc., Equity Office Products, Baxter, STMicroelectronics, the City of Chicago, Manitoba Hydro, Stora Enso, and Temple-Inland, Walsh says.
CCX is working out the final details of the project now, but the basic elements are set. For Kansas producers, the program will initially pay for contracted acres of no-till and grass plantings.
The rates of carbon sequestration that the payments will be based upon are: * Continuous no till: 0.5 metric tons CO2/acre/year * Grasses planted after 1-1-99: 0.75 metric tons CO2/acre/year
These assumed carbon sequestration rates will be applied to all land under contract throughout the entire project area (which covers parts of Kansas, Oklahoma, Nebraska, South Dakota, Minnesota, Wisconsin, Iowa, Missouri, Illinois, Indiana, Ohio, Michigan, and the Mississippi River delta in Arkansas, Louisiana, Tennessee, and Mississippi). For example, no-till ground in eastern South Dakota will be assumed to sequester carbon at the same rate as no-till ground in western Ohio.
For no-till payments, producers will enter a contract to keep the same field in no-till for four consecutive years, starting in the summer of 2003 and ending in 2006. Those who are renting or leasing ground will have to guarantee that they have an agreement to continue farming the ground for the entire 4-year period.
Fields that are currently in no-till, as well as those being converted to no-till, are eligible. Only producers in the eastern half of Kansas are eligible to sign up no-till ground in this first pilot project. Subsequent phases of the project will likely include no-till acres in the western half of Kansas as well, Walsh explains. Soybeans can be grown on the ground only two of the four years, at most.
As it’s currently drafted, producers would enter no-till fields under contract in 250-acre units. The payment rate isn’t established yet, but Walsh expects the payment to range from $0.50 to $2.00 per acre for no-till ground.
One or more aggregators in Kansas will collate 100 250-acre units into a 25,000-acre batch. The CCX will deal directly only with the aggregator(s), not with individual producers. The aggregator will likely be a large organization such as the Kansas Farm Bureau, Agriliance, or one or more large co-ops or other agribusiness, Walsh says. Producers will deal directly with the aggregator for matters of contract compliance and payment.
Compliance will be monitored by independent verifiers. This will likely involve field visits and photographic records.
Certain grass plantings in Kansas will also be eligible to enter the pilot project, Walsh says. The contract area for grass plantings includes nearly all of Kansas. The grass must have been seeded no earlier than 1999, however. In other words, current grasslands that were seeded in 1998 or any year previous to that would not be eligible. Payment rates for newly seeded grassland will probably range from $0.75 to $3.00 per acre.
Agricultural methane collection/combustion systems installed after January 1, 1999 can also qualify for the pilot project. Offsets will be issued at the rate of 18.2 mtons CO2 per ton of methane combusted. Projects with greater than 10,000 mtons CO2 per year can register directly with CCX. Those with lesser amounts can register with an aggregator.
CCX will operate as a typical commodity trading exchange, which involves daily trading and the involvement of both speculators and those directly involved in the production or sequestering of CO2. Trading on the CCX will be conducted under the oversight of the National Association of Securities Dealers (NASD). There will be daily settlement of transactions. Producers under contract will be paid annually.
Obviously, there are some important details yet to be finalized. Who will be the aggregator(s) in Kansas? When can you sign up for a contract? When will the payment rate be finalized?
We will keep you up to date on this program and answer these questions for you in this newsletter just as soon as the final details are known.
In the meantime, you can check the CCX website at: http://www.co2e.com
-- Steve Watson <swatson@oznet.ksu.edu>
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Energy Company Enters Into CO2 Offset Agreement
Green Mountain Energy Company (GMEC) recently announced it has reached an agreement with The Climate Trust to reduce the climate impacts of GMEC's business operations. Under the agreement, GMEC said it will work with The Climate Trust to support energy-efficiency programs in Portland, OR that will "offset a portion of carbon dioxide (CO2) emissions resulting from [GMEC's] nationwide business activities."
GMEC said the agreement was made possible through The Climate Trust's "Giving to Protect the Climate" program, which provides businesses the opportunity to make a donation to help "expand The Climate Trust's portfolio of greenhouse gas emissions reduction projects."
The Climate Trust said the funds provided by GMEC will prevent the emission of approximately 1,200 tons of CO2 emissions, or about half of the company's estimated CO2 emissions in 2001.
For more details, see: www.climatetrust.org
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Conference On Corporate Strategies To Address Climate Change Issues
Infocast will host a conference on corporate strategies for most effectively addressing climate change, titled "Managing the Risks of Climate Change," March 24 through 26 at the Sheraton World Resort in Orlando, FL. According to the company, the meeting will focus on such issues as managing carbon dioxide (CO2) risk, assessing carbon risk exposure, taking advantage of internal responses and external reduction opportunities, and developing a corporate-wide greenhouse gas (GHG) reduction strategy.
Infocast said the event will open on March 24 with an afternoon pre-conference workshop hosted by ICF Consulting director Steven Fine and managing director Craig Ebert titled "Maximizing the Value of Your Company's Climate Actions." During the workshop, Fine and Ebert will discuss how to understand existing and proposed GHG initiatives, determine an appropriate baseline, assess direct and indirect emission impacts, ensure acceptable monitoring and verification procedures, establish legal entitlement to emission reduction benefits and design an appropriate information management system.
On the first full day of the conference, Ebert will present a session on dealing with potential carbon restraints, while Emissions Marketing Association president Daniel Chartier will provide an update on the status of carbon regulations. Additional sessions during the day will examine the pros and cons of reporting emissions reductions, gap analysis, developing an internal corporate-wide GHG inventory and internal mitigation strategies.
The second day of the meeting will feature a case study for developing a GHG strategy presented by TransAlta Corporation carbon market initiative manager of acquisitions Rochelle Pancoast, as well as sessions on external GHG reduction options and the risks and opportunities associated with GHG offsets.
Contact: Infocast, 818-888-4444, website: www.infocastinc.com
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u.k. energy policy questioned
London, England-based lobbying organization the Energy Intensive Users Group (EIUG) recently voiced concern that rising energy prices in the United Kingdom (U.K.) "could damage competitiveness unless other economies follow similar policy routes." According to EIUG, the U.K. government's recent energy report indicates that electricity prices are set to rise by up to 25 percent, and natural gas prices by up to 30 percent, by 2020 as a result of the government's proposed policy measures on emissions trading, renewable energy and energy efficiency.
While EIUG said it supports the government report's emphasis on market solutions, "both to ensure security of supply and in providing economic mechanisms to reduce [carbon dioxide (CO2)] emissions," the group maintains that "the big dilemma for energy policy remains how to achieve a low carbon economy without damaging competitiveness, given that international agreement may not be forthcoming."
Additionally, EIUG noted that many "competitor economies...currently show no serious commitment to decarbonize," and that if the U.K. and other European Union states "press ahead unilaterally, the effect of higher energy prices on industries located in Europe...could be devastating."
Contact: EIUG, website http://www.eiug.org.uk.
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MEETINGS OF INTEREST Note: All dates are 2003 unless otherwise noted.
March 24-26 Managing the Risks of Climate Change Orlando, FL See: www.infocastinc.com
April 22-24 The Earth Technologies Forum: Conference on Climate Change and Ozone Protection Washington, D.C. For more information, contact the conference planners at (703) 807-4052
May 5-8 National Energy Technology Laboratory (NETL) Second National Conference on Carbon Sequestration Washington, DC See: http://www.netl.doe.gov/publications/proceedings/01/carbon_seq/carbon_seq01.html#Papers
May 27-30 The Fourteenth Global Warming International Conference & Expo (GWXIV) Boston, Massachusetts For more information, contact Global Warming International at (630) 910-1551
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