* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download "Climate Change and Agriculture: Agriculture's Role in Cap-and-Trade"
Climate change feedback wikipedia , lookup
Climate engineering wikipedia , lookup
Scientific opinion on climate change wikipedia , lookup
Climate change adaptation wikipedia , lookup
Effects of global warming on humans wikipedia , lookup
Low-carbon economy wikipedia , lookup
Climate governance wikipedia , lookup
Climate change mitigation wikipedia , lookup
Citizens' Climate Lobby wikipedia , lookup
2009 United Nations Climate Change Conference wikipedia , lookup
Emissions trading wikipedia , lookup
Climate change, industry and society wikipedia , lookup
Surveys of scientists' views on climate change wikipedia , lookup
Public opinion on global warming wikipedia , lookup
Politics of global warming wikipedia , lookup
Economics of global warming wikipedia , lookup
German Climate Action Plan 2050 wikipedia , lookup
Mitigation of global warming in Australia wikipedia , lookup
Climate change and poverty wikipedia , lookup
Views on the Kyoto Protocol wikipedia , lookup
Years of Living Dangerously wikipedia , lookup
United Nations Framework Convention on Climate Change wikipedia , lookup
IPCC Fourth Assessment Report wikipedia , lookup
Economics of climate change mitigation wikipedia , lookup
Climate change in Canada wikipedia , lookup
Climate Change and Agriculture: Agriculture’s Role in Cap-and-Trade Feeding a Hot and Hungry Planet: The Challenge of Making More Food, Fewer GHG Debbie Reed DRD Associates Washington, DC Princeton University Friday, May 1, 2009 Climate Change and Agriculture: Agriculture’s Role in Cap-and-Trade Presentation Overview: Global Climate Change…and Agriculture Cap-and-Trade…and Opportunities for Agriculture Policy Landscape: 2009-2011 Windows of Opportunity Improving our Agricultural Policies: – – Offsets are Transitional Cap-and-Trade can be Transformational Climate Change and Agriculture: Agriculture’s Role in Cap-and-Trade Presentation Overview: Global Climate Change…and Agriculture Cap and Trade…and Opportunities for Agriculture Policy Landscape: 2009-2011 Windows of Opportunity Improving our Agricultural Policies: – – Offsets are Transitional Cap-and-Trade can be Transformational Global Climate Change… If atmospheric CO2 levels are to be stabilized at reasonable concentrations by 2050 (450-650 ppm CO2), drastic reductions in emissions are required over the next 20-30 years. --IPCC Special Report on Emissions Scenarios During this critical 20-30 year period, all available emissions reductions measures must be utilized, and new energy technologies must be developed. Climate Change and Agriculture: Agriculture’s Role in Cap-and-Trade Premise WE do not have the luxury of excluding agricultural emissions reductions from GHG emissions reductions policies*; AND We should incentivize agriculture’s participation by providing full market value for emissions reductions. Climate Change and Agriculture: Agriculture’s Role in Cap-and-Trade Presentation Overview: Global Climate Change… Cap-and-Trade…and Opportunities for Agriculture Policy Landscape: 2009-2011 Windows of Opportunity Improving our Agricultural Policies: – – Offsets are Transitional Cap-and-Trade can be Transformational Cap-and-Trade…and Opportunities for Agriculture Economy-Wide, Cap-and-Trade CAP = amount of GHG that can be emitted in a year Established by policy Reduced every year (theoretically) Applies to emitters ID’d by policy Cap-and-Trade…and Opportunities for Agriculture Economy-Wide, Cap-and-Trade Allowance = legal tender, represents 1 ton GHG emissions Given/auctioned to capped entities Can be traded, sold on GHG market(s) Cap-and-Trade…and Opportunities for Agriculture Economy-Wide, Cap-and-Trade Offset = legal tender, represents 1 ton GHG reductions Given to non-capped entities for proven, verified GHG reductions Can be traded, sold on GHG market Offsets are a transitional policy Cap-and-Trade…And Opportunities for Agriculture Economy-Wide Cap-&-Trade: A New Economy CBO estimates allowances from capand-trade worth $50 B - $300 B/year Over 20 years = $300 B - $6 Trillion Cap-and-Trade…and Opportunities for Agriculture Why Offsets for Agriculture? In cap-&-trade, goal is efficiencies of scale Cap largest emitters (e.g., power plants) Smaller, diffuse, non-point sources = not efficient targets, regulated reductions are too costly Ag = non-capped sector Ag = source of offsets (emissions reductions) or some other “incentivized” emissions reductions Cap-and-Trade…and Opportunities for Agriculture The Role of U.S. Agriculture in Climate Change Mitigation: Agriculture is both a source of GHG, and a sink (GHG reservoir) As a source of GHG, agriculture contributes approximately 7% of US GHG emissions – mostly from small, diffuse, non-point sources N2O and CH4 account for the largest share of agricultural emissions (CO2 equivalent basis) Cap-and-Trade…and Opportunities for Agriculture The Role of U.S. Agriculture in Climate Change Mitigation: Reducing emissions from agricultural sources of GHG, and enhancing terrestrial/biological sinks (soil carbon sequestration) Cap-and-Trade…and Opportunities for Agriculture Agricultural Sources of Nitrous Oxide (N2O) emissions: – – Soils, Fertilizers Land application of manure Cap-and-Trade…and Opportunities for Agriculture Agricultural Sources of Methane (CH4): – – – Livestock (enteric fermentation, manure handling) Soils Rice cultivation Cap-and-Trade…and Opportunities for Agriculture Mitigation Options for Agriculture CH4 N 20 Cap-and-Trade…and Opportunities for Agriculture Mitigation Options for Agriculture ** Protecting and enhancing the soil C sink ** No-till, cover crops Crop Rotations Rangeland Management Cap-and-Trade…and Opportunities for Agriculture Q: What is the role of Agricultural Offsets in Cap-and-Trade? A: Offsets are a cost-containment measure (keep costs of cap-&-trade system lower for society, for capped entities); and, A: Soil sinks, other ag reductions have multiple ancillary benefits to society, and to agriculture: “charismatic carbon credits.” Potential CO2 Reduction Options Rapidly Deployable Minor Contributor <0.2 PgC/y Major Contributor >0.2 PgC/y Not Rapidly Deployable • Photovoltaics • Ocean fertilization • C sequestration in Agricultural soils • Improved efficiency • Industrial Non-CO2 gas abatement • Ag non-CO2 gas abatement (CH4, N2O) • Reforestation • Biomass to hydrogen • Biomass to fuel • Cessation of deforestation • Energy-efficient transport • Geologic storage • High efficiency coal technology • Large-scale solar • Next generation nuclear fission Caldeira et al. 2004. A portfolio of carbon management options, p. 103-130, In C. B. Field and M. R. Raupach, eds. The Global Carbon Cycle. Island Press, Washington, DC. Cap-and-Trade…and Opportunities for Agriculture In theory, then, a cap-and-trade system, can incentivize agricultural emissions reductions that are proven and verified via offsets credits that can be traded or sold in GHG markets…….”transformational” Policies to Address Global Climate Change…the Role of Agriculture Presentation Overview: Global Climate Change…and Agriculture Policies to Address Global Climate Change…and Opportunities for Agriculture Policy Landscape: 2009-2011 Windows of Opportunity Improving our Agricultural Policies: – Offsets are Transitional – Cap-and-Trade can be Transformational Policy Landscape: Windows of Opportunity, 2009-2011 Agriculture and Cap-and-Trade: Policy Issues, Concerns Issues, Concerns for the Sector… Economic impacts of C&T for agriculture: – – ↑,↓ Net impacts unknown Protocols: cannot be burdensome, onerous USDA jurisdiction over ag and forestry offsets programs Agriculture and Cap-and-Trade: Policy Issues, Concerns Policy Issues… Agricultural offsets important early, but protocols, categories of eligibility uncertain Measurement, monitoring, verification – – must balance costs and accuracy Discount based on uncertainty, pre-award (important for fungibility of offsets) Must protect existing C stocks, enhance the stocks, and build more Agriculture and Cap-and-Trade: Policy Issues, Concerns Policy Issues… Lack of data – particularly for non-CO2 gases: incentivize new technologies, better data collection, measurement techniques Avoid perverse outcomes – – – Reward, not punish, early actors engaged in desired activities Additionality: adjust cap? Baselines: temporal? Agriculture and Cap-and-Trade: Policy Issues, Concerns Policy Issues… Early focus on project-level activities – – Whole-farm GHG accounting systems needed Move towards landscape accounting, systems Duration of biological sinks: goal is to maximize residence time in sinks Better valuation of additional ecosystem services delivered by agricultural offset activities Improving our Agricultural Policies: C&T is Transitional, Transformational Agricultural emissions reductions are a lowcost, high-impact, readily available means of near-term, transitional GHG reductions (2) Cap-and-trade can incentivize good agricultural practices, policies: devil will be in the details (3) If ag offsets not included from the start, a huge missed opportunity: society & agriculture (4) Cap-and-trade can be “transformational” (1) -- Farm Bill 2013?