FAQ
What are Carbon Offset credits?
Carbon credits are a new financial commodity representing certified reductions in the emission or accumulation of greenhouse gases in the atmosphere. Man-made greenhouse gases, produced from industrial, agricultural, and municipal sources, include carbon dioxide, methane, nitrous oxide and several other chemical compounds.
How are Carbon Offset credits created?
Carbon credits can be created from agricultural, waste management and renewable energy projects that reduce greenhouse gas emissions. By implementing appropriate practices and technologies according to specific protocols, reductions in greenhouse gas emissions can be monitored, documented, independently verified, and registered to be sold as certified, tradable carbon credits.
Is Reduced Tillage the only approved protocol for generating Offsets?
No. There are several others approved including Afforestation, Beef Feeding, Beef Lifecycle, Biomass Combustion, Landfill Gas, Pork Operations, and others. Other opportunities are still in the Draft stage. Reduced Tillage is just our initial entry point into this market as agriculture is our strength.
How does the Tillage System Management Protocol work within Agri-Trend Aggregation Inc. (“ATAI”)?
The producer will sign a contract with ATAI with which he/she should be comfortable after review with an authorized ATAI representative.
An Offset Project Plan will be constructed including field management practices from your farm.
Project implementation will include data entry into MySCP Netware™. MySCP™ is the Data Management Platform used by ATAI to store and manage the data from your farm to fulfill the requirements of the Tillage protocol. The data, which the producer owns, will be entered and secured within MySCP Netware™ by an authorized ATAI representative. The tonnes of CO2e generated per acre resulting from actions taken on or after January 1, 2002 until the present will be determined according to the appropriate coefficients, practices utilised, and a total for your enterprise will be calculated.
A detailed report will be generated to fulfill the requirements of a verification report for submission to an independent, credible 3rd party who will issue a Verification Statement referring to the submitted offsets as eligible or ineligible for sale.
ATAI will market the offsets at the most advantageous price possible for the benefit of the producer and ATAI.
Where can I sell my Carbon Offsets?
Anywhere there is a market that recognises your offset - for example, the Chicago Climate Exchange (”CCX”) or to an Alberta large final emitter.
Am I allowed to till?
Yes & no. In Alberta, discretionary tillage of up to 10% is allowed. This means that up to 10% of the surface area of an individual field may be cultivated to address specific management issues. If your intent is to sell offsets on the Chicago Climate Exchange however, the tillage protocols are different, and tillage is not allowed. For clarification, speak with an Agri-Trend Aggregator.
Can the Large Final Emitters in Alberta buy their Offsets anywhere?
No, the legislation dictates that in this regulated market, they can only utilise offsets generated within the province of Alberta.
Will the Alberta system expand into the rest of Canada?
It may. Other jurisdictions, both provincial and federal, are exploring the Alberta model with a great deal of interest.
Can I use higher coefficients to determine my Offset generation than the default coefficients within the protocol?
Not at this time. There is research being done which will eventually lead to a “Flexibility Mechanism” which will allow for customized coefficients to be used in Offset calculations. The final determination is many months away.
How do I know you will get the most money for my credits?
ATAI and the producer are sharing in the proceeds of the sale. Therefore, it is in our best interest to maximize the value of the offsets.
I heard these are worth up to $15 a tonne while some are only worth $3-4 a tonne?
Only one trading system is regulated and that is Alberta which will obviously command higher values than a voluntary system such as the CCX.
When do I get paid?
Shortly after the sale is made.
Is native pasture eligible?
No. At this time, only annual seeded crops fit under the Tillage Protocol.
Who will keep my records secure and confidential for 7 years?
ATAI has this capability. We are not certain about other Aggregation companies.
Who owns my data?
The producer.
Who gets the credits on rented land?
The Landlord and the Lessee must make that determination and have a signed agreement (proof of ownership) for the Aggregator prior to submission for verification.
What are the fees?
70% of the sale proceeds will be returned to the producer or his designate.
