1. Carbon Markets and
Biochar: An Offset
Buyers Perspective
North American Biochar Conference
August 10th, 2009
Peter Weisberg
Offset Project Analyst
pweisberg@climatetrust.org
503-238-1915
2. Outline
⢠Theory of offsets
⢠How offsets could support biochar projects
⢠Methodology issues
⢠Current funding from The Climate Trust
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4. Source: The McKinsey Quarterly. 2007. âA cost curve for greenhouse gas reductions.â
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8. US Offset Market
⢠Trends
âFossil fuels will likely be capped
âFavor domestic projects over international projects
⢠Destroying methane emissions
⢠Sequestration
â Forestry
â Soil Management
â Biochar?
9. Sequestration Projects
⢠Clean Development Mechanism
â Reforestation/afforestation only
â Temporary credits
HFCs, PFCs & N2O
reduction
27%
Renewables
35%
CH4 reduction & Cement &
Coal mine/bed
20%
Supply-side EE
10%
Fuel switch
7%
Demand-side EE
1%
Afforestation &
Reforestation
0.4%
Transport
0.2%
Expected CERs Until 2012 (%) in each category
10. Outline
⢠Theory of offsets
⢠How offsets could support biochar projects
⢠Methodology issues
⢠Current funding from The Climate Trust
11. $ = CO2 Sequestered x Price
â˘Low Quality US Projects
⢠Chicago Climate Exchange: $2-$4/mt CO2
⢠High Quality US Projects
⢠Voluntary Carbon Standard: $4-$9/mt CO2
⢠California Climate Action Registry: $5-$11/mt CO2
⢠Mature International Markets
⢠EU Emissions Trading Scheme: $10-$40/mt CO2
⢠Projections for Early US Market
⢠Markey-Waxman Bill : $10-$15/mt CO2
12. GHG Reduction Reduction Size Qualify for Carbon
Finance?
Sequestration Large Yes
Fuel switch Medium Likely to be capped
Less fertilizer ď fewer
soil emissions
(N2O and CH4)
Medium/Large Hard to measure
Less fertilizer ď less
fertilizer production
Small/Medium Indirect, hard to
measure, likely to be
capped
Biochar GHG Reductions
13. Currently Methodologies
Avoidance of methane production from
biomass decay through controlled
pyrolysis
⢠Small scale
⢠No credit for carbon sequestration, butâŚ
⢠Char must be âbiologically inertâ
⢠Volatile C/Fixed C ratio lower than 50%
14. Next Step: Sequestered Carbon
Carbon Gold methodology for proposed to
the Voluntary Carbon Standard
15. Outline
⢠Theory of offsets
⢠How offsets could support biochar projects
⢠Methodology issues
⢠Current funding from The Climate Trust
16. Unresolved Methodology
Issues
⢠Recalcitrance
⢠Guarantee 100 years of permanent
sequestration
⢠Carbon Gold: Volatile C/Fixed C ratio
lower than 50%
⢠Soil monitoring
⢠What happens to char that erodes out of
the soils?
17. Unresolved Methodology
Issues
⢠Ownership â Three entities, same reduction
1. Feedstock owner
2. Pyrolysis plant
3. Land owner
⢠Carbon Gold: Credits pyrolysis plant
⢠Sequestered carbon can only be claimed once
19. Resolved Issue: Waste
Feedstocks
⢠Leakage
â Changes in emissions outside the project
itself
⢠Direct: Biomass fuel unavailable
⢠Indirect: displace current farm land for biochar
feedstock plantations ď land use change
⢠Carbon Gold: âbiomass that would otherwise
have been left to decay or been burned in an
uncontrolled mannerâ
20. Outline
⢠Theory of offsets
⢠How offsets could support biochar projects
⢠Methodology issues
⢠Current funding from The Climate Trust
21. ⢠3 Programs
⢠Oregon Program
⢠Smart Energy
⢠Colorado Carbon Fund
⢠16 projects, $8.8 million in
funding, 2.6 million tons of CO2
offset
⢠Non-profit
- Laboratory for innovative
offset projects
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23. Project Development Timeline
Proposal Due
Diligence
Contract
Negotiation Commercial
Operation
Annual
Monitoring
Upfront Payment
Annual payment
âupon deliveryâ