Carbon Credits:
We have appointed experts to deal with this but I will do my best to
provide you with a simple explanation. As I understand it, it all
started with global warming and amongst other things, countries in
remote parts of the world cutting down pristine forest to sell wood
and cultivate food crops. The world was shocked but these countries
complained that the West have factories with global reach emitting
thousands of tons of harmful gasses on a daily basis making millions
of dollars while they on the other hand had to retain their forests
in poverty while providing clean oxygen.
The world acknowledged this, got together in a
place called Kyoto in Japan and came up with the idea of Carbon
Credits under a plan referred to as the Clean Development Mechanism
(CDM). This plan aimed to promote sustainable development in
developing countries as well as to help industrialized countries
(Annex I Parties) to achieve compliance with their Carbon Emission
Reduction (CER). Industrialized countries could thus invest in
emission-saving projects in developing countries and gain credit for
the savings achieved through the generation of Carbon Emission
Credits so that they could comply and contribute to their own
emission reduction targets.
It was therefore decided that if a country
produced more Carbon Dioxide (CO2) than it could absorb, it would be
required to purchase absorption ability from another using Carbon
Credits as the currency. In other words a ‘forest country ‘ could
sell off large quantities of emission reductions (Green House Gas
Offsets or Carbon Credits) to an ‘offending country’ towards the
purpose of neutralizing planet warming carbon dioxide emissions of
the world as a whole.
Carbon Credits or Green House Gas Offsets may
thus be referred to as marketable Certificates that represent
reductions in gases that contribute to the warming of the
atmosphere.
-
One Carbon Credit is equal to 1 Ton of
Carbon Dioxide. This is referred to as the Carbon Dioxide
Equivalent. (CO2e)
- Two mature trees generally offset about 1
metric ton of Carbon Dioxide.
- One Carbon Credit is worth between US $10
and US $40 per credit.
Please Note that planting trees will absorb
Carbon Dioxide in the atmosphere
BUT NOT IF THEY ARE:
1. Cut down – No longer CO2 efficient.
2. Cut down and burnt –
Creates CO2
3. Planted and then harvested – The CO2 is not stored within
them.
4. Planted and then ploughed – The stored CO2 escapes.
As a matter of interest, less Carbon
Credits may need to be purchased by an ‘offending country’ if it can
reduce fuel consumption, utilize more efficient methods of power
generation, leave forests to stand or plant borders around fields.
This is hardly the case with industrialized nations but who knows
‘wonders never cease to exist’
Jatropha is commonly respected as a Carbon
Credit generating tree as it recycles 100% of the CO2 emissions
produced by burning the biodiesel made from it. It lives for over 50
years producing a renewable, sustainable source of clean energy.
There is only a certain amount of feedstock
available in New Zealand that can be derived from local resources
such as tallow. The use of edible crops such as wheat are not an eco
friendly biofuel option to fossil fuels. By this I mean if you
consider the aforementioned interpretation of Green House Gas
Offsets, planting and ploughing wheat to make biodiesel leaves a
large carbon footprint and serves only as an alternative to oil from
the fossil fuels rather than a planet preserving benefit. Besides
the bread price becomes linked to the fuel price which could result
in the need for a bread subsidy to feed the hungry and so on.
Jatropha can be used almost as is to run a diesel engine. Just
remember the feedstock and the alcohol used to manufacture biodiesel
must be sourced from a renewable source if to be considered truly
renewable.
In Conclusion:
The CO2 emission of Jatropha oil is considered
to be almost zero. For this reason, a Jatropha plantation has all
the requirements of an energy crop within the CMD and is thus
eligible for attracting payment for Carbon Credits.
.Government
Subsidies: In my opinion Farmers in New Zealand have
unintentionally been left out of the biodiesel developmental trend.
It is hoped that with the introduction of Jatropha, you the Farmer
will benefit by planting Jatropha and that the Government will take
the lead by supporting your endeavors with some sort of
subsidization that will further mutual goals.
There are no
Government Subsidies at this stage. We are hoping that the
Government will come forward to assist. This could either be at the
level of Central Government, The Minister of Energy, The Energy and
Efficiency Conservation Authority (EECA), or other Government bodies
directly involved in the promotion of biofuel in New Zealand.
In some countries
the subsidy for biofuel crops are now greater than food crops. For
example, Italy’s subsidy is 22 euros per 100 kilos of biofuel
feedstock - Andrew Gillanders Grains Council Conference
Grains Chairman’s Speech June 2007. There are, however, many ways
that the New Zealand Government or other Government Authorities
could assist. Some suggestions would be to
follow Italy’s example or to
make land available.