Carbon Offset Programs
Current market greenhouse gas (GHG) reduction and trading systems include a full portfolio of offset projects. Tradable contracts are issued to aggregators of eligible projects on the basis of sequestration, destruction or reduction of GHG emissions.
The following programs are supported by KarbonEx Corp's management team to assist our clients in reaching the full potential of their operations.
Forestry Carbon | Rangeland Soil-Carbon | Agricultural Soil-Carbon | Agricultural Methane | Landfill Methane | Renewable Energy
Forestry Carbon
Sequestering, or "holding," carbon helps reduce carbon dioxide, which is one of several greenhouse gases contributing to the warming of the atmosphere.Trees are excellent at taking atmospheric carbon dioxide (CO2) and converting it to a sequestered, stable form. New tree plantings can sequester up to seven tons of carbon dioxide per acre during optimal growth phases. Credits sequestered from forested land are referred to as Exchange Forestry Offsets, or XFOs.
The CCX is a leader and innovator in developing simple, standardized rules for issuing Carbon Financial Instrument ® (CFITM) contracts for forest carbon sequestration. Eligible projects on CCX may exist under all four of the mitigation measures outlined by the Intergovernmental Panel on Climate Change (IPCC):
- Maintaining or increasing forest area: reducing deforestation and degradation
- Maintaining or increasing forest area: afforestation/reforestation
- Forest management to increase stand- and landscape-level carbon density
- Increasing off-site carbon stocks in wood products and enhancing product and fuel substitution
Forest Carbon Offset Project Categories
- Afforestation: the planting of new forest on lands, which historically, have not contained forests.
- Long-Lived Wood: harvested wood that has existed for long period of time, in which it has served as a carbon sink.
- Managed Forest Projects: projects that sustainably manage forests such that the growth in carbon stocks exceeds the harvest.
Rangeland Soil-Carbon
Growth and sustainability of carbon credits now allow land owners to register and sell carbon credits from agricultural practices. Carbon credits created in rangeland are called Exchange Soil Offsets (XSOs).This emerging market is a new revenue opportunity for land owners with continuously no-tilled fields and newly established grasslands. Carbon sequestration in soil and biomass will be recognized on the CCX through credits generated by offset projects that are registered and verified on the Exchange.
KarbonEx Corp is able to exploit standardized CCX programs in order to create carbon credits for agricultural carbon emission reductions for improved rangeland management.
Basic Program Specifications:
- Minimum 5 year contractual commitment.
- Non-degraded rangeland managed to increase carbon sequestration through grazing land management that employs sustainable stocking rates, rotational grazing and seasonal use in eligible locations.
- Restoration of previously degraded rangeland through adoption of sustainable stocking rates, rotational grazing and seasonal use grazing practices initiated on or after January 1, 1999.
- Projects must take place within designated land resource regions.
- Offsets are issued at standard rates depending on project type and location.
- Rates vary from 0.12 to 0.52 metric tons of CO2 per acre per year.
- All projects must be independently verified.
Agricultural Soil-Carbon
Eligible agricultural soil carbon sequestration projects include continuous conservation tillage and grass planting.Basic Program Specifications:
- Conservation tillage: Minimum five year contractual commitment (2006-2010) to continuous no-till, strip till or ridge till on enrolled acres.
- Grass planting: projects initiated on or after January 1, 1999 may qualify.
- Carbon sequestration projects must be enrolled through KarbonEx Corp or an Offset Aggregator.
- All projects must be independently verified.
Agricultural Methane
Research shows on-farm methane digesters drastically reduce methane emissions into the environment. Methane is 20 times more potent as a greenhouse gas compared to carbon dioxide. Capturing and destroying methane helps the environment by reducing air emissions while generating useful energy that doesn't rely on fossil fuels.Agricultural methane collection and combustion at livestock operations may be eligible for carbon credits. Eligible systems include covered anaerobic digesters, complete-mix, plug flow digesters, as well as covered lagoons. Methane digestion may be referred to as Exchange Methane Offsets, or XMOs.
Basic Program Specifications:
- Methane collection/combustion projects activated on or after January 1, 1999 may qualify.
- Project proponents need to demonstrate clear ownership rights of the emission reductions from the destruction of methane.
- Selling energy to a third party or using gas for onsite energy use does not preclude project from receiving credit, provided ownership of greenhouse gas attributes has been retained.
- Methane collection projects that include electricity generation may also qualify for Emission Offsets from Renewable Energy based on displaced emissions.
- All projects must be independently verified.
Landfill Methane
Eligible Landfill methane capture and combustion projects sequestration may be eligible for carbon credit authorization.Basic Program Specifications:
- Eligible landfills are those not required to collect methane by law (e.g., U.S. New Source Performance Standards).
- Methane offset projects placed into service on or after January 1, 1999 may qualify.
- Project proponent must demonstrate clear ownership rights of the emission reductions from the destruction of methane.
- Selling energy to a third party or using gas for onsite energy use does not preclude project from receiving credit, provided ownership of GHG attributes has been retained.
- Methane collection projects that include electricity generation may also qualify for Emission Offsets from Renewable Energy based on displaced emissions.
- All projects must be third party verified.
Renewable Energy
Eligible renewable energy projects on the basis of displacement of CO2 emissions associated with fossil fuel based electricity may be eligible for carbon credit conversion. Eligible renewable energy projects include wind, solar, hydropower and biofuel that are not being used to meet obligations established by state or local mandates.Basic Program Specifications:
- Renewable energy systems activated on or after January 1, 1999 may qualify..
- Project proponents need to demonstrate clear ownership rights to the environmental attributes associated with the renewable energy production.
- The energy generated cannot be sold as "green".
- Environmental attributes, such as renewable energy credits (RECs) generated by qualifying systems must be surrendered to and retired by CCX in order to prevent double counting.
- All projects must be independently verified.
