The Agriculture Department could help drive more participation in voluntary carbon markets through technical assistance and outreach, according to a report released by the agency on Monday.
The report, mandated by Congress in a 2022 spending bill, says carbon markets are not getting high rates of participation from producers, despite high rates of awareness. The agency, citing a Trust in Food survey, says producer concerns about return on investment, upfront costs, data collection, compensation for preexisting practices, permanence requirements, issues of scale and confusion surrounding programs all present challenges to widespread carbon market participation.
The USDA report says reducing costs associated with implementing carbon projects, like those generated from quantification or verification, could lead to greater participation and higher profits. Providing upfront financing for practice implementation could also help drive interest, the report says.
The agency said USDA's Natural Resources Conservation Service could also help by providing additional technical assistance and resources for farmers looking to navigate carbon markets.
The report also said the creation of a Greenhouse Gas Technical Assistance Provider and Third-Party Verification Program could allow the agency to serve as a “trusted authority for a range of relevant carbon market information.” This program would collect and provide resources on the market structures and quantification requirements of several U.S.-based agriculture and forestry carbon credit programs.
“Given the current concerns and inconsistencies with carbon market programs, the Program can help provide context and increased certainty around qualified market actors and expected market outcomes,” the report said.
The 2022 omnibus spending bill included the Growing Climate Solutions Act, which authorizes USDA to set up parameters for third-party verification of carbon sequestration practices. The bill was a major priority of Senate Ag Committee Chair Debbie Stabenow, D-Mich., and received broad bipartisan support in the Senate before changes at the behest of her House counterpart, Chairman Glenn “GT” Thompson, R-Pa.
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USDA is now considering whether to establish the program, according to a press release. The agency said in the report that the program would merely focus on education and providing market information and would not “impede or constrict existing markets.”
The Food and Agriculture Climate Alliance — a broad coalition of agricultural and environmental organizations — said it was “encouraged” by the release of the report and the continued implementation of the GCSA, “a top priority for FACA last Congress.”
“Voluntary carbon markets offer an opportunity for farmers, ranchers and forest owners to be compensated for reducing their environmental footprint,” the group said in a statement. “FACA continues to support the establishment of a USDA program to ensure producers have access to reliable information and resources.”
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