Garth Boyd, Ph.D.

Camco 

Date: March 13th, 2008

Opportunities for American Agriculture in the Voluntary 

Carbon Credit Market


Who Cares?

 International Solution to the risk of climate change:

• Kyoto Protocol

 US States, Market and Proposed National Solutions to the 

risk of climate change

• California AB 32

• Western Climate Initiative

• Chicago Climate Exchange

• Regional Greenhouse Gas Initiative (RGGI)

• Lieberman-Warner Bill

• And many, many more initiatives at the state level 
Who Cares?
GHG Emissions Cap = 100 

Metric Ton

Total Allowances = 

100

1 MT = 1 Allowance

GHG Emissions Cap

30 A

10 A

25 A

20 A

15 A

Emissions = 10 MT 25 MT 30 MT 15 MT 20 MT = 100 MT
GHG Emissions Cap & Trade

GHG Cap = 100 MT

Allowances = 100

Emissions = 15 MT 20 MT 30 MT 20 MT 15 MT = 100 MT

5 MT

10 A

+ 5 A

25 A

- 5 A

30 A

15 A

+ 5 A

20 A

- 5 A

5 A 5 A
GHG Emissions Cap & Trade and Offsets

Emissions = 15 MT 20 MT 35 MT 20 MT 15 MT = 105 MT

5MT

10 A

+ 5 A

25 A

- 5 A

30 A

+ 5 C

15 A

+ 5 A

20 A

- 5 A

5 A 5 A

GHG Cap = 100

Allowances = 100

GHG Offsets = 5

Effect:

Cap Broken

But

Credits 

from dairy 

offset 

imbalance

5 C
What is a Carbon Credit?

 A certified reduction in GHG emissions equivalent to one metric 

ton (2204 pounds) of Carbon Dioxide 

mt CO2e
Three Ways to Reduce Carbon in the Atmosphere

 Emission reduction: switch to better 

technologies with lower emissions

 Energy substitution: using more renewable 

fuels to replace fossil fuels

 Off-setting by sequestration: biotic uptakes 

from the atmosphere (e.g. tree planting)
What is the Size and Value of the Market?

 Voluntary 2006

• 23.7 million metric tons

• $91 million USD

• $4.10 Average wholesale price for a VER/carbon credit

 Compliance 2006

• 2.7 billion metric tons

• $58 billion USD

• $10.90 Average wholesale price for a CER/carbon credit
Why Voluntarily Buy Carbon Credits? 

 Corporate social responsibility/environmental ethics

 Public relations/branding

 Sales of carbon neutral products

 Anticipation of regulation
Voluntary Carbon Credit Buyers by Volume
Carbon Neutral: Type of Emissions Offset

Preferred Standard/Certification Procedures
Distribution of Project Types on the CCX
Voluntary Market

 Quality, Quality, Quality: Challenge for the Voluntary Market

 A high quality carbon credit must be:

• Real (project has happened that created it)

• Additional (beyond business-as-usual activities)

• Measurable

• Permanent (not temporarily displace emissions)

• Independently verified

• Unique (not used more than once to offset emissions)

• Transparent (public disclosure)

• Conservative (assumptions, values, procedures) 
High Quality Ag Generated Carbon Credits:

• Command higher prices

• Improve rural economies

• Avoid potentially damaging revelations that ag is getting a free 

ride by getting paid for “business as usual” farm and ranch 

management

• Promote the use of new technologies that otherwise are 

dependent on government subsidies

• Involve an unregulated (GHG’s) sector of society in solving 

climate change issues through financial incentives

• Provide numerous ancillary environmental benefits from GHG 

reduction projects
One Example - Camco Dairy Lagoon Cover Program

 Simple, reliable lagoon cover technology

• Low cost, effective

• Utilizes/improves existing facilities

• Builds on farmer’s investments in manure collection and storage

 Environmental benefits

• Air quality: greatly reduces odor, ammonia, particulate and 

greenhouse gas emissions

• Water quality (prevents storm water from entering lagoon)

 Economic benefits

• Generates carbon credits

• Provides additional farm income

• Opportunity for on-farm electricity generation and heat energy 

utilization
Why Dairy Cows? 

 Law:

12 cubic feet of biogas produced/lb of VS digested

 Proven Assumptions:

• 17 lbs of VS/day per 1375 lb lactating dairy cow

• 17 lbs VS x 50% destruction efficiency = 8.5 lbs VS

• 8.5 lbs VS x 12 cu ft/lb VS =102 cu ft biogas/cow/day

• 102 cu ft x 60% CH4in biogas = 61 cu ft/CH4/cow/day

• 61 cu ft/cow/day x 365 days/yr = 22,338 cu ft CH4/cow/year

• 21 GWP multiplier x 22,338 cu ft CH4/cow/yr = 469,098

• 469,098 x .0448 lbs/cu ft CH4 = 21,016 lbs CO2e

• 21,016 lbs/2204 lbs/mt = 9.5 mt/cow/year CO2e

 2000 cows x 9.5 = 19,000 mt CO2e/year
Free Stall Flush System
Lagoon or Holding Pond
Open-air Manure Lagoons (“baseline scenario”)

VOC, NH3, H2S, N2O, CO2, CH4

anaerobic decomposition

(bacteria)

Odor Greenhouse gases Dairy/hog barn

Lagoon

Liquid manure

Air Quality Concerns:

• Odor

• Ammonia

• Greenhouse gas emissions
Covered Manure Lagoons (emission reductions)

CO2

anaerobic digestion

Dairy/hog barn

Lagoon

Liquid manure

Biogas (CH4)

Generator/flare

Result:

• Reduced odor

• Reduced greenhouse gases

Air-tight membrane cover

CH4

CH4

CH4

Electricity
Lagoon Cover and Biogas Pipe
Camco Lagoon Cover Program - Dairy Example

 ~2,000 cow dairy

 Capital cost for installation = $200,000

 10,000 credits per site

• Average 5 metric tons of credits per cow per year

 Carbon price = $5/mt

 Amortize capital over 5 years

 Gross proceeds = $500,000 over 10 years

Figures may vary based on site specific conditions
Earth Observation System

Satellite Database 

Data Analysis

Carbon Models

Carbon Accounts

WWW

Markets

Buyers

Carbon Sellers
The Bottom Line

Global climate change issues 

= 

opportunity for Agriculture
Camco - Leaders in Carbon Market Solutions

 Camco’s business is “solutions to climate change”

• Carbon assessment and footprinting

• Carbon management 

• Project identification & evaluation

• Carbon Asset Development 

• VER asset generation

• Policy, strategy & technical advisor

 Leader in global climate change business

• 18-year legacy

• Listed on the London Stock Exchange

• Over 220 staff worldwide, operating out of 17 offices

• Across 11 countries – Austria, Bulgaria, China, Kenya, Malaysia, Russia, 

South Africa, Tanzania, UK, USA, Vietnam

 Service orientation 
Garth Boyd, Ph.D.

garth.boyd@camcoglobal.com

www.camcoglobal.com

Camco

Denver, CO

910-328-4454