Selling Carbon Credits

A New Way to Make Hay

Under Alberta’s new Green Legislation, major emitters have to cut their output of greenhouse gases. Buying “credits” from a farmer is one way they can offset their own emissions

Several years ago, after seeing neighboring farmers adopt a seeding method called no-till, an Alberta farmer spent $250,000 on new equipment to switch to the technique.

It was a success, with costs down and yields up on three sections of land. Making money from climate change was never part of this farmers thinking. But now, his no-till fields are emerging as an unlikely player in the growing market for emission credits.

No-till farming, which minimizes agitation of the soil during the planting process cuts down on the release of carbon dioxide from tilled soil and helps the soil act as a more absorbent “sink” in the air. Under Alberta’s new Green Legislation, major emitters such as companies in the oil sands and those producing electricity from coal have to cut their output of greenhouse gases. Buying “credits” from a farmer is one way they can offset their own emissions. In a effort to ensure customers that their offsets will be accepted by government, Emission Credits Corporation has focused on hard proof, assigning serial numbers to the credits. It has adopted standards under the International Standards Organization, bought insurance and works with third-party verifiers.