Post on 01-Feb-2016
description
M-AGG Phase 2 Report:Agriculture Sector Greenhouse Gas Quantification Protocol Benchmarking
Davis, California
Keith Driver, V.P. OperationsBlue Source Canada ULC
June 2010
Outline
• About Blue Source
• M-AGG Phase 2 Objectives
• Activities and Deliverables
• Protocol Basics
• Applicable Programs and Markets
• Protocol Listing
• Criteria for Benchmarking
• Protocol Evaluation
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About Blue Source
3 | Blue Source | A Leading Climate Change Portfolio
‹#› | Blue Source | A Leading Climate Change Portfolio C
About Blue Source
Two primary businesses
• Carbon Credit Portfolio100-200M tonne portfolioOver 20 project types in 48 states and CanadaFederal and state carbon advocacy leadershipDeveloped the first protocols in numerous carbon
categories
• Carbon Infrastructure Investment $500 million of dollars project equity (additional $500
million callable)Management team has developed, owned and/or operated
all of the anthropogenic CO2 pipelines in North AmericaBlended engineering, finance and transactional skills
Blue Source has built the largest portfolio of North American emission reduction credits and projects.
About Blue Source
In addition we have a staff of North America’s foremost experts on carbon reduction and sequestration project
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M-AGG Phase 2 Objectives
Activities and Deliverables
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M-AGG Phase 2 Objectives
• Build on recognition of agriculture sector role in carbon markets
• Acknowledge that protocols are key market access infrastructure
• Drive early action and market development
• Benchmarking exercise to take stock of current protocols• Draw attention to the breadth and depth of current works• Share learnings from historic protocol development efforts• Highlight key issues for agriculture sector protocol development• Provide some guidance for what is market-ready
This is not designed to be critical review.Pioneers get the arrows. Settlers get the land.
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Activities and Deliverables
• Develop criteria for benchmarking• C-AGG Principles and others (Offset Quality Initiative)• Regulatory and programmatic guidance
• Review each of the protocols from M-AGG phase 1• Limited to work in the public domain• Compilation into benchmarking matrix
• Communicate results and follow discussion• M-AGG Workshops• Upcoming communication events
• Revisions to draft report prior to final publication
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Protocol Basics
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Making Carbon a Commodity
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Project Documentation
Project Documentation
Validation and Registration
Validation and Registration
Monitoring and Verification
Monitoring and Verification Offset IssuanceOffset Issuance
• Project / Baseline Description
• Monitoring Plan and Methodology
• GHG emission calculation
• Project / Baseline Description
• Monitoring Plan and Methodology
• GHG emission calculation
• Review• Approve• Registration
• Review• Approve• Registration
• Implement• Monitor• Verify
• Implement• Monitor• Verify
• Issuance of tradable units
• Issuance of tradable units
Driven by Reporting Guidance
Transparency
Market Oversight
3rd Party Verification
Monitoring Requirements
Tradable Commodity
Qua
ntifi
catio
n P
roto
cols
Protocol Essential Elements
• Protocol Standards and Approaches• Move toward ISO 14064 pt II
• Streamlined life cycle assessment (project/baseline)• Evaluation of all potential baseline scenarios• Identification of controlled, related and affected GHG emissions • Deciding which GHG sources and sinks are material
• Scientific Rigour• Grounding in peer-reviewed literature• Building on national / international best practice guidance
• Particular challenge for areas of emerging science
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Quantification Protocols:
identifying preferred methodologies to
quantify GHG reductions/removals
Protocol Development Requires…..
Protocol Essential Elements
• Scoping and Applicability• Acknowledge variety of scales of Ag sector projects
• Standardization of quantification approaches
• Define baseline condition• Project specific• Performance standard
• Functional equivalence of project and baseline conditions
• Quantification Element Requirements• Address inherent variability across landscapes• Manage the measurement vs. modeling balance
• Ensure rigour of emission reduction assessment• False positives/false negatives and accuracy/precision
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Protocol Essential Elements
• Regulatory and Programmatic Guidance• Scope of the review/system• Regulatory coverage• Additionality criteria• Permanence rules• Leakage assessments
• Guidance for Validation and Verification• Streamline and de-risk these processes
• Protocol Development and Review Processes• Program specific with little overlap• Stakeholder engagement key (technical and constituency)
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Applicable Programs and Markets
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Key North American Climate Change Initiatives
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NB
NB
NB
NB
Western Climate Initiative
Regional GHG Initiative
Midwestern GHG Reduction Accord
AB Specified Gas Emitters Regulation
SK Bill 126
Canada’s Regulatory Framework
Senate Bill (American Power Act)
Available Protocol Review and Approval Programs
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• Some programs are industry-led
• Some programs are regulatory-based
• Cross-pollination and acceptance is possible
• Differences in approval processes
• Differences in scope
Diversity in scope, coverage, timeline, cost and outcome.
Protocol Listing
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Reviewed Protocols
• Climate Action Reserve
• Greenhouse Gas Services
• Regional Greenhouse Gas Initiative
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Forest Project Protocol
Livestock Project Protocol
Livestock Manure
AfforestationManure
Management
Reviewed Protocols
• Chicago Climate Exchange
• Voluntary Carbon Standard
• Clean Development Mechanism
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Forestry Carbon
Agricultural Methane
Afforestation/Reforestation
Manure Management
Offset Fertilizer with
Legumes
Tillage and Grassland
Rangeland Soil Carbon
Sustainable Agriculture Land Mgmt
Reviewed Protocols
• Alberta Offset System
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Days on Feed for Beef
Dairy Operations
Edible Oils for Beef
Tillage Management
Nitrogen Emission
Reduction*
Energy Efficiency
Pork Feed and Manure
ManagementBeef Lifecycle Biogas
Criteria for Benchmarking(Building from Phase 1)
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Protocol Review Criteria
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Protocol Review Criteria
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Protocol Review Criteria
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Protocol Review Criteria
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Results of Benchmarking
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Results of Benchmarking - CAR
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• Science Based
• Quantifiable
• Additionality• Performance-based approach
• Permanence• Mandated approach
• GHG Accounting• De-minimus exclusion of GHG in livestock
• Scalability• Limited disclosure on SSR interrelationships
• Engagement and Review• Transparency of process • Broad vs. technical stakeholder coverage• CARB oversight or otherwise
Forest Project Protocol
Livestock Project Protocol
Results of Benchmarking - GHGs
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• Science Based
• Quantifiable • Exclusion of N2O
• Additionality
• Permanence
• GHG Accounting• De-minimus exclusion of GHG
• Scalability
• Engagement and Review• Private protocol • Only final version of protocol is available
Livestock Manure
Results of Benchmarking - RGGI
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• Science Based• Limited transparency as short-form
• Quantifiable • Limit guidance provided
• Additionality• Limited transparency on performance standard
• Permanence• Partial for afforestation – conservation easement
• GHG Accounting• Limited detail and transparency given short-form
• Scalability• Limited disclosure of SSRs and inter-linkages
• Engagement and Review• Only final version published• Standard is codified as part of program
Afforestation
Manure Management
Results of Benchmarking - CCX
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• Science Based• Uncertain – lack of transparency
• Quantifiable • Limited coverage of GHGs
• Additionality• Tillage / Rangeland can be continuation of practice
• Permanence• Limited term to liability – where applicable
• GHG Accounting• Limited guidance and transparency at times
• Scalability• Limited disclosure of SSRs and inter-linkages
• Engagement and Review• Voluntary program• Only final version available• Limited transparency to review process
Forestry Carbon
Agricultural Methane
Tillage and Grassland
Rangeland Soil Carbon
Results of Benchmarking - VCS
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• Science Based
• Quantifiable
• Additionality
• Permanence• Programmatic guidance
• GHG Accounting• Reliance on models to address in SALM
• Scalability• Limited disclosure of SSRs and inter-linkages
• Engagement and Review• Only final version published / under review• Double validation process - limited pool of experts• CDM / CAR approval possible
Afforestation/Reforestation
Sustainable Agriculture Land Mgmt
Results of Benchmarking - CDM
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• Science Based
• Quantifiable
• Additionality
• Permanence
• GHG Accounting
• Scalability• Limited disclosure of SSRs and inter-linkages
• Engagement and Review• Only final version published
Manure Management
Offset Fertilizer with
Legumes
Results of Benchmarking - AOS
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• Science Based
• Quantifiable • EE Protocol provides limited guidance
• Additionality
• Permanence
• GHG Accounting• Leakage not always documented
• Scalability• Emission factors and baselines need
adjustment for regional factors
• Engagement and Review• NERP still undergoing review (with others)
Days on Feed for
Beef
Dairy Operations
Edible Oils for Beef
Tillage Management
Nitrogen Emission
Reduction*
Energy Efficiency
Pork Feed and Manure Management
Beef Lifecycle
Biogas
Conclusions and Next Steps
• Protocol benchmarking process• ‘Lessons-learned’ from all programs / systems• Gaps across the range of agriculture operations and activities• Significant opportunities for coalescing efforts • Need to integrate science
• Seeking input on criteria, review results, documentation• Revise documentation to incorporate stakeholder views• Further stakeholder engagement
• Highlight opportunities for further protocol development• Bring together groups working on similar project types• Encourage follow-on work in the public domain
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Moving to Three Streams of Activity
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Path
to C
arbo
n M
arke
t
Info
rmin
g Pol
icy D
evel
opm
ent
T-AGG
M-AGG
P-AGG?
C-AGG
Contact Information
Keith Driver, M.Sc., P.Eng., MBAVP, Operations
Blue Source Canada ULC
KeithD@BlueSourceCan.comwww.BlueSourceCan.com
403.262.3026
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