IMPORTANCE OF CARBON CREDIT IN LIVESTOCK PRODUCTION
Compiled, & shared by-DR. RAJESH KUMAR SINGH, (LIVESTOCK & POULTRY CONSULTANT), JAMSHEDPUR Post no 1376Dt 28/08//2019
JHARKHAND,INDIA 9431309542, rajeshsinghvet@gmail.com
Introduction
Sequestering carbon has become a topic essential to the broader conversation about how our planet might survive the escalating effects of climate change. Livestock are frequently demonized as the enemy of this process. That’s partly because raising animals for meat and dairy accounts for 5 percent of global carbon dioxide emissions; unsurprisingly, study after study—including the United Nations’ most recent, bleak climate report—affirms that humans need to reduce consumption of animal-based products in order to fend off planetary disaster.
Climate change has become a hot topic and has prompted a market for carbon credits. Interest in climate change has prompted a market for carbon credits, Learn how livestock operations produce greenhouse gases and ways to reduce emissions and benefit from carbon credits. Globally, livestock directly contributes about 9% of the total anthropogenic global greenhouse gas (GHG) emissions, and as much as 37% of anthropogenic methane, mostly from enteric fermentation by ruminants. Methane gas is the second- largest contributor to greenhouse gas emissions worldwide after carbon dioxide. An adult cow emits 80 to 110 kilograms of the gas over its lifetime. Worldwide, 1.2 billion large ruminants, including cows, produce an estimated 80 million tons of methane annually, accounting for 28 percent of global methane emissions from human-related activities, according to the US Environmental Protection Agency.
Greenhouse gases
Greenhouse gases have become newsworthy and carbon credits exist because of concerns about global warming. Several scientific studies have provided evidence that increasing concentrations of greenhouse gases have increased the earth’s average air temperature, resulting in the phenomenon termed global warming. Resulting projections suggest that the rising temperatures may produce changes in weather trends, sea levels, and land-use patterns. Collectively, these changes are examples of climate change. The phrase greenhouse gas comes from the way certain gases in the atmosphere – primarily carbon dioxide, methane, and nitrous oxide – mimic a greenhouse by trapping heat. Just like a greenhouse, these gases allow sunlight and solar energy to enter the atmosphere freely, and as the earth’s surface gives off heat, greenhouse gases trap the heat within the atmosphere. Carbon dioxide (C02) is used as the reference greenhouse gas. All other greenhouse gases are compared using carbon dioxide equivalents (C02e). For example, methane has a heat trapping potential 21 times greater than that of carbon dioxide, so 1 metric ton of methane is equal to 21 metric tons of carbon dioxide (21 C02e) when released into the atmosphere. The greenhouse gas effect of nitrous oxide is 298 times greater than that of carbon dioxide. So, even though methane and nitrous oxide gases are not as common in the atmosphere as carbon dioxide, they still have a large effect. The phrases carbon footprint and carbon credit come from the use of carbon dioxide as the reference greenhouse gas and from the growing emphasis on reducing dependence on fossil fuels, which are carbonbased materials, The phrase carbon sequestration applies to those processes that remove CO2 from the atmosphere and provide a net reduction in greenhouse gases on a long-term basis.
Role of Agriculture
According to the National Energy Information Center,
greenhouse gases have increased by about 25 percent since
large-scale industrialization began around 150 years ago.
Greenhouse gases are formed by both natural and man-made
processes. Burning fossil fuels (e.g., automobiles, home heat-
ing, utility plants) is the major man-made source of greenhouse
gases (CO2).
Agriculture as a whole is thought to contribute less than
10 percent to the projected total of greenhouse gases. The largest share of agricultural greenhouse gases are contributed by processes usually categorized as soil management. When soil organic matter (called sequestered carbon) is converted to carbon dioxide following tillage, erosion, and other soil disruptions, the CO2 is released into the air.
Livestock production mainly produces and releases greenhouse gases the following ways:
• Cattle and sheep produce methane during digestion of
feed.
• Stored manure generates methane.
• Nitrous oxide may be released from manure that is
applied to pastures and cropland.
• Respiration produces carbon dioxide.
• Carbon dioxide is released during operation of engines
and other power supplies.
Potential Impacts on Agriculture
There is some concern that public policies regulating
greenhouse gas emissions may impose new restrictions on
animal agriculture or some sort of “cow tax” on livestock
operations. Currently, agriculture is not the main target of
activists and policy makers, but producer organizations would
be wise to stay abreast of legislative efforts on this matter.
While it has become fairly clear that agriculture, includ-
ing livestock production, contributes greenhouse gases to the atmosphere, it is very likely a minor contributor.
Still, for producers interested in taking a proactive stance, there are manageable opportunities within agriculture to reduce greenhouse gas emissions.
The greatest opportunity lies in land conservation practic-
es, such as reduced-tillage farming. Within animal agriculture,
capturing methane during manure storage is certainly feasible.
Until recently, the main incentives for capturing methane were
to use it as fuel (biofuel) or to help control odor (although
methane is odorless it can be managed along with odorous gases). More often than not, costs associated with capturing and managing the methane exceeded potential revenues. This is where carbon credits come into the picture.
CARBON CREDIT
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gases with a carbon dioxide equivalent (tCO2e) equivalent to one tonne of carbon dioxide (UNCCCF 2005). 1 CARBON CREDIT ? 1 ton of CO2 or its equivalent greenhouse gas (GHG) .
What are Carbon Credits
A carbon credit is a financial instrument that represents a tonne of CO2 (carbon dioxide) removed or reduced from the atmosphere from an emission reduction project, which can be used, by governments, industry or private individuals to offset damaging carbon emissions that they are generating. Carbon credits are associated with either removing existing CO2 or CO2e emissions from the environment. Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air .
Types of Carbon Credits
1) Compliance Carbon Credits a. Certified Emission Reduction (CER) units b. Emission Reduction Unit (ERU) 2) Voluntary Carbon Credits a. Voluntary Carbon Unit (VCU) b. Verified (or Voluntary) Emissions Reduction (VER) c. Renewable Energy Certificate (REC)
KYOTO PROTOCOL
Countries that ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases, or engage in emissions trading if they maintain or increase emissions of these gases.
Features of Kyoto protocol——–
It sets legally binding targets and defines a specific time period for reaching those targets. It creates a new commodity (carbon) that can be traded through new international market-based mechanisms. It will facilitate the initials of sustainable development while providing additional support to developing nations to achieve this goal.
Clean Development Mechanism (CDM):
This mechanism allows developed (or Annex 1) nations to receive emission credits towards their own emission targets by participating in certain projects in developing (or Non-annex 1) countries. Projects must be approved by members of the Protocol and must contribute to sustainable development and greenhouse gas emission reductions in the host developing country.
Joint Implementation
This mechanism allows Annex 1 nations to receive emission credits towards their own emission targets by participating in certain projects with other Annex 1 nations. These Joint Implementation projects must be approved by all nations participating in the project, and must either reduce greenhouse gas emissions or contribute to enhanced greenhouse gas removal through emission sinks (i.e. reforestation).
Emissions Trading:
This mechanism allows Annex 1 nations to purchase emission ‘credits’ from other Annex 1 countries. Some countries will be below the emission targets assigned to them under the Protocol and, as such, will have spare emission credits. Under the emissions trading system, other nations may purchase these spare credits and use them towards their own emission targets (IPCC, 2001).
Exchanges Traded In
1) Chicago Climate Exchange. 2) European Climate Exchange 3) Nord Pool 4) Power Next 5) European Energy Exchange
INDIAN SCENARIO
India has a large potential to earn carbon credits and carbon consultancy service has a greater part to play and is going to add a new dimension to the environmental and financial services arena.
Contribution from Indian livestock ————
The total number is over 500 million heads, Contribution is more than the vehicles, and Indian cattle are emitting more CH4, Estimates: 1994 – 9 Mt/yr, 2007 – 11.75 Mt/yr. This production is expected to rise since the meat and milk production is to be increased to meet the human demands. India and China together contribute to $5 billion of the global carbon trade estimated at $30billion.One of the leading generators of CERs (Certified Emission Reductions) through CDM (Clean Development Mechanism). India has also bagged the world’s largest carbon credit project which will prevent 40 million tons of carbon entering the atmosphere annually. Estimates are – one third of the total CDM projects registered with UNFCCC are from India. India claims 31% of the total world carbon credit trade (Swamy et al.,2006).
Carbon Trading In India————
Multi Commodity Exchange (MCX) has launched futures trading in carbon credits in India with the help of Chicago Climate Exchange in 2005. Asia’s first commodity exchange trading in carbon. India has already generated over 72 million units of carbon credits.
Carbon Credit Traders In India————-
Grasim Industries Ltd.
Indus Technical & Financial Consultants Ltd
Rajasthan Renewable Energy Corporation Reliance Energy Ltd.
Tata Motors Limited Tata Steel Limited
Tata Power Company Limited
Blue Star Energy Services Inc.
Role of livestock———-
Livestock production mainly produces and releases greenhouse gases the following ways: Cattle and sheep produce methane during digestion of feed. Stored manure generates methane, Nitrous oxide may be released from manure that is applied to pastures and cropland, Respiration produces carbon dioxide. Carbon dioxide is released during operation of engines and other power supplies (Powers et al., 2009).
Opportunities for Livestock Producers to earn carbon credit———–
On livestock operations, the two main sources of green-house gases are the animals themselves and the manure the animals generate. From Animals Carbon dioxide releases through respiration and Methane releases through enteric fermentation. However, relatively few changes can be made to reduce these emissions. Improve performance efficiency through Breeding (e.g. Pigs 3% reduction in GHG per yr) Direct manipulation of digestion Replace fibre with starch Ionophores / essential oils Manipulation of rumen microbes Methane inhibiting antibiotics, higher quality feed Management and engineering Storage Timing and method of N applications
Manure-
Handling manure as a solid material results in relatively low methane, Meanwhile handling manure as a liquid low nitrous oxide emissions (Powers et al.,2009).
Manure storage and treatment systems——-
Use a cover to collect the gases generated during storage and treat or burn the gas so that emitting co2 instead of methane their Carbon credit achieved.
Rangeland management————
Improved rangeland management and restoration activities like Rotational grazing, intensive grazing will help in reducing emission.
Food production——
Here producer can receive carbon credit through conservation tillage that intern minimizes soil disturbances may increase soil organic matter levels .
How to Get Carbon Credits for Your Operation.—————
The carbon credit market has relatively few buyers and many sellers, as with many agricultural markets. Aggregators play a critical role in organizing and delivering larger quantities of sequestered carbon for marketing as carbon credits. Aggregators are organizations (nonprofit or for-profit) that work with producers to determine: a. the qualifying amount of carbon credits, b. The practices necessary to achieve that potential, c. How to verify that carbon sequestration or offsetting is occurring, and d. How to aggregate carbon credits and market them to buyers. As part of the agreement to sell carbon credits, greenhouse gas reduction must be verified periodically by an approved verifier who reviews records, gas flow measurements, and operational procedures. Producers are required to maintain documentation and their operations may be inspected to ensure compliance the price received for carbon credits will vary depending on the market and the trading fees agreed upon with your aggregator.
Advantages of carbon credit ———
Technology transfer from developed to developing countries, Better technology for company, Can change country’s financial situation, Development of cleaner technologies, Environmental benefits, Good alternative option for investment and Helps in developing extra income Helps in developing extra income.
Disadvantages————
Gives false sense of pollution, It is not regulated, Developed countries purchase CER’s rather than finding new ways to reduce emissions, lack of a comprehensive and structured international system.
Conclusion
Carbon credit helps in Promote and disseminates technologies that deliver positive benefits as production intensifies in livestock production.there will be scope for National Inventories of GHG that will extend to developing countries by the way of better methodology. This Promote win-win mitigation and among competition may build.Urgent need to develop suitable institutional and policy frameworks, at local, national and international levels for the suggested changes to occur
