Carbon prices and greenhouse gases abatement from agriculture,forestry and land use in Nepal

The Agriculture, forestry and other land use (AFOLU) sector as a whole accounts for more than 80% of the total greenhouse gas (GHG) emission in Nepal. This study estimates the GHG emissions from the AFOLU sector in the business as usual (BAU) case during 2010–2050 and identifies the economically attractive countermeasures to abate GHG emissions from the sector at different carbon prices. It also estimates the carbon price elasticity of GHG abatement from the sector. The study finds that enteric fermentation processes in the livestock and emissions from agricultural soils are the two major contributors of GHG emission in AFOLU sector. It identifies no-regret abatement options in the AFOLU sector that could mitigate about 41.5% of the total GHG emission during 2016–2050 in the BAU scenario. There would be a net cumulative carbon sequestration of 16 million tonnes of carbon dioxide equivalent (MtCO₂e) at $10 per tonne of carbon dioxide equivalent (tCO₂e) during the period. Carbon price above $75/tCO₂e is not found to be much effective in achieving significant additional reduction in GHG emissions from the AFOLU sector.     

The optimal choice of residue management, crop rotations, and cost of carbon sequestration: empirical results in the Midwest US

This study investigates the cost of soil carbon sequestration in the Midwest US. The model addresses several missing components in earlier analyses: the link between the residue level choice and carbon payments, crop rotations, carbon loss when shifting from conservation to conventional tillage and the spatial pattern of carbon sequestration across different soil types. The results suggest that for $100 per metric ton of carbon, 1.5 million metric tons of carbon could be sequestered per year on the 19.9 million hectares of cropland in the study region. These estimates suggest less carbon potential than existing studies because the opportunity costs associated with conservation tillage are fairly high. Annual carbon rental payments are found to be more efficient, as expected, but for smaller programs, per hectare rental payments are not substantially more costly.     

Global forest products markets and forest sector carbon impacts of projected sea level rise

Sea level rise (SLR) is among the climate-change-related problems of greatest concern, threatening the lives and property of coastal residents and generating far-reaching economic and ecological impacts. We project that SLR will lead to an increase in the rate of new housing construction to replace destroyed structures, impact global wood products supply and demand conditions, and cause changes in global forest sector carbon mitigation potential. Findings indicate that 71 million new units will be built by 2050 to accommodate the SLR-affected global population. More than two-thirds of these new units are projected to be in Asia. The estimated extra wood products needed to build these new residential units is 1,659 million m³, assuming that all these structures would be built mainly with wood, representing a 4 % increase in total wood consumption, compared to projected reference level global wood products consumption. Increased timber removals to meet this higher construction wood demand (alternative scenario) is shown to deplete global forest carbon by 2 % by 2050 compared to the reference scenario. However, all such projected declines in forest biomass carbon could be more than offset by increased carbon sequestration in harvested wood products, avoided emissions due to substitution of wood for non-wood materials in construction, and biomass regrowth on forestland by 2050, with an estimated net emissions reduction benefit of 0.47 tCO₂e/tCO₂e of extra wood used in SLR-related new houses over 30 years. The global net emissions reduction benefit increased to 2.13 tCO₂e/tCO₂e of extra wood when price-induced changes in forest land area were included.     

A load-based CO2 cap in the power sector

Oregon's governor has proposed a load-based cap and trade programme that limits carbon dioxide (CO₂) emissions to 10% below 1990 levels by 2020. A load-based programme is different from the source-based European Union Emissions Trading Scheme (EU ETS), as it regulates emissions sources, located outside the state, that serve Oregon's electricity load. This article describes the stakeholder process that developed the legislative proposal for the load-based cap. The Oregon Clean Energy Planning Model©, a modified capacity expansion model of annual load resource balances, is used to estimate programme costs. The net present value of the climate policy to Oregon ranges from a $518 million benefit to a $414 million cost under various load growth scenarios. Programme benefits are possible under low and medium load growth because the societal returns of energy efficiency exceed its cost over the life of the programme. CO₂ allowance prices in 2017–2020 are estimated in the medium case at approximately $21 per tonne. Low energy efficiency deployment could raise allowance costs to $36, while an aggressive efficiency programme could reduce them to $13.50. Competition for Northwest renewable resources could increase allowance prices in final phase to $37, indicating the interdependence in programme design among state climate policies.     

Supply of carbon sequestration and biodiversity services from Australia's agricultural land under global change

Global agroecosystems can contribute to both climate change mitigation and biodiversity conservation, and market mechanisms provide a highly prospective means of achieving these outcomes. However, the ability of markets to motivate the supply of carbon sequestration and biodiversity services from agricultural land is uncertain, especially given the future changes in environmental, economic, and social drivers. We quantified the potential supply of these services from the intensive agricultural land of Australia from 2013 to 2050 under four global outlooks in response to a carbon price and biodiversity payment scheme. Each global outlook specified emissions pathways, climate, food demand, energy price, and carbon price modeled using the Global Integrated Assessment Model (GIAM). Using a simplified version of the Land Use Trade-Offs (LUTO) model, economic returns to agriculture, carbon plantings, and environmental plantings were calculated each year. The supply of carbon sequestration and biodiversity services was then quantified given potential land use change under each global outlook, and the sensitivity of the results to key parameters was assessed. We found that carbon supply curves were similar across global outlooks. Sharp increases in carbon sequestration supply occurred at carbon prices exceeding 50 $ tCO₂⁻¹ in 2015 and exceeding 65 $ tCO₂⁻¹ in 2050. Based on GIAM-modeled carbon prices, little carbon sequestration was expected at 2015 under any global outlook. However, at 2050 expected carbon supply under each outlook differed markedly, ranging from 0 to 189 MtCO₂ yr⁻¹. Biodiversity services of 3.32% of the maximum may be achieved in 2050 for a 1 $B investment under median scenario settings. We conclude that a carbon market can motivate supply of substantial carbon sequestration but only modest amounts of biodiversity services from agricultural land. A complementary biodiversity payment can synergistically increase the supply of biodiversity services but will not provide much additional carbon sequestration. The results were sensitive to global drivers, especially the carbon price, and the domestic drivers of adoption hurdle rate and agricultural productivity. The results can inform the design of an effective national policy and institutional portfolio addressing the dual objectives of climate change and biodiversity conservation that is robust to future uncertainty in both national and global drivers.     

Set-asides for carbon sequestration: implications for permanence and leakage

This paper examines the potential role of forest set-asides in global carbon sequestration policy. While set asides that protect forests from timber harvests and land-use conversion may alleviate concerns with permanence, and they may provide large ancillary environmental benefits, they may also lead to large leakage. This paper uses a global land use and forestry model to examine the efficiency of three crediting schemes for set-asides. The results show that if set-asides are integrated into a global forestry carbon sequestration program that includes a wide range of other management options, then 300 million hectares of land would be set-aside, and up to 128 Pg C could be sequestered in global forests by 2105. Under alternative policies that focus exclusively on set-asides, more forestland can be set-asides, up to 3.2 billion hectare, but these policies invite large leakage in the near-term, and in the long-run, they less net carbon is removed from the atmosphere. Specifically, leakage is estimated to be 47–52%, depending on the policy, and by the end of the century, up to 17% less carbon will be sequestered in all forests.     

Estimating the economic potential for agricultural soil carbon sequestration in the Central United States using an aggregate econometric-process simulation model

The purpose of this paper is to develop and apply a new method to assess economic potential for agricultural greenhouse gas mitigation. This method uses secondary economic data and conventional econometric production models, combined with estimates of soil carbon stocks derived from biophysical simulation models such as Century, to construct economic simulation models that estimate economic potential for carbon sequestration. Using this method, simulations for the central United States show that reduction in fallow and conservation tillage adoption in the wheat-pasture system could generate up to about 1.7 million MgC/yr, whereas increased adoption of conservation tillage in the corn–soy–feed system could generate up to about 6.2 million MgC/yr at a price of $200/MgC. About half of this potential could be achieved at relatively low carbon prices (in the range of $50 per ton). The model used in this analysis produced estimates of economic potential for soil carbon sequestration potential similar to results produced by much more data-intensive, field-scale models, suggesting that this simpler, aggregate modeling approach can produce credible estimates of soil carbon sequestration potential. Carbon rates were found to vary substantially over the region. Using average carbon rates for the region, the model produced carbon sequestration estimates within about 10% of those based on county-specific carbon rates, suggesting that effects of spatial heterogeneity in carbon rates may average out over a large region such as the central United States. However, the average carbon rates produced large prediction errors for individual counties, showing that estimates of carbon rates do need to be matched to the spatial scale of analysis. Transaction costs were found to have a potentially important impact on soil carbon supply at low carbon prices, particularly when carbon rates are low, but this effect diminishes as carbon prices increase. This research was supported in part by the Montana State Agricultural Experiment Station, by the EPA STAR Climate Change program and by the Consortium for the Agricultural Mitigation of Greenhouse Gases. Although the research described in this article has been funded wholly or in part by the United States Environmental Protection Agency through grant R-82874501-0 to Montana State University, it has not been subjected to the Agency’s required peer and policy review and therefore does not necessarily reflect the views of the Agency and no official endorsement should be inferred.     

Carbon dioxide sequestration: how much and when?

Carbon dioxide (CO₂) sequestration has been proposed as a key component in technological portfolios for managing anthropogenic climate change, since it may provide a faster and cheaper route to significant reductions in atmospheric CO₂ concentrations than abating CO₂ production. However, CO₂ sequestration is not a perfect substitute for CO₂ abatement because CO₂ may leak back into the atmosphere (thus imposing future climate change impacts) and because CO₂ sequestration requires energy (thus producing more CO₂ and depleting fossil fuel resources earlier). Here we use analytical and numerical models to assess the economic efficiency of CO₂ sequestration and analyze the optimal timing and extent of CO₂ sequestration. The economic efficiency factor of CO₂ sequestration can be expressed as the ratio of the marginal net benefits of sequestering CO₂ and avoiding CO₂ emissions. We derive an analytical solution for this efficiency factor for a simplified case in which we account for CO₂ leakage, discounting, the additional fossil fuel requirement of CO₂ sequestration, and the growth rate of carbon taxes. In this analytical model, the economic efficiency of CO₂ sequestration decreases as the CO₂ tax growth rate, leakage rates and energy requirements for CO₂ sequestration increase. Increasing discount rates increases the economic efficiency factor. In this simple model, short-term sequestration methods, such as afforestation, can even have negative economic efficiencies. We use a more realistic integrated-assessment model to additionally account for potentially important effects such as learning-by-doing and socio-economic inertia on optimal strategies. We measure the economic efficiency of CO₂ sequestration by the ratio of the marginal costs of CO₂ sequestration and CO₂ abatement along optimal trajectories. We show that the positive impacts of investments in CO₂ sequestration through the reduction of future marginal CO₂ sequestration costs and the alleviation of future inertia constraints can initially exceed the marginal sequestration costs. As a result, the economic efficiencies of CO₂ sequestration can exceed 100% and an optimal strategy will subsidize CO₂ sequestration that is initially more expensive than CO₂ abatement. The potential economic value of a feasible and acceptable CO₂ sequestration technology is equivalent – in the adopted utilitarian model – to a one-time investment of several percent of present gross world product. It is optimal in the chosen economic framework to sequester substantial CO₂ quantities into reservoirs with small or zero leakage, given published estimates of marginal costs and climate change impacts. The optimal CO₂ trajectories in the case of sequestration from air can approach the pre-industrial level, constituting geoengineering. Our analysis is silent on important questions (e.g., the effects of model and parametric uncertainty, the potential learning about these uncertainties, or ethical dimension of such geoengineering strategies), which need to be addressed before our findings can be translated into policy-relevant recommendations.     

An Issue of Permanence: Assessing the Effectiveness of Temporary Carbon Storage

In this paper, we present a method to quantify the effectiveness of carbon mitigation options taking into account the `permanence' of the emissions reduction. While the issue of permanence is most commonly associated with a `leaky' carbon sequestration reservoir, we argue that this is an issue that applies to just about all carbon mitigation options. The appropriate formulation of this problem is to ask `what is the value of temporary storage?' Valuing temporary storage can be represented as a familiar economic problem, with explicitly stated assumptions about carbon prices and the discount rate. To illustrate the methodology, we calculate the sequestration effectiveness for injecting CO₂ at various depths in the ocean. Analysis is performed for three limiting carbon price assumptions: constant carbon prices (assumes constant marginal damages), carbon prices rise at the discount rate (assumes efficient allocation of a cumulative emissions cap without a backstop technology), and carbon prices first rise at the discount rate but become constant after a given time (assumes introduction of a backstop technology). Our results show that the value of relatively deep ocean carbon sequestration can be nearly equivalent to permanent sequestration if marginal damages (i.e., carbon prices) remain constant or if there is a backstop technology that caps the abatement cost in the not too distant future. On the other hand, if climate damages are such as to require a fixed cumulative emissions limit and there is no backstop, then a storage option with even very slow leakage has limited value relative to a permanent storage option.     

Direct air capture of CO2 with chemicals: optimization of a two-loop hydroxide carbonate system using a countercurrent air-liquid contactor

Direct Air Capture (DAC) of CO₂ with chemicals, recently assessed in a dedicated study by the American Physical Society (APS), is further investigated with the aim of optimizing the design of the front-end section of its benchmark two-loop hydroxide-carbonate system. Two new correlations are developed that relate mass transfer and pressure drop to the air and liquid flow velocities in the countercurrent packed absorption column. These relationships enable an optimization to be performed over the parameters of the air contactor, specifically the velocities of air and liquid sorbent and the fraction of CO₂ captured. Three structured Sulzer packings are considered: Mellapak-250Y, Mellapak-500Y, and Mellapak-CC. These differ in cost and pressure drop per unit length; Mellapak-CC is new and specifically designed for CO₂ capture. Scaling laws are developed to estimate the costs of the alternative DAC systems relative to the APS benchmark, for plants capturing 1 Mt of CO₂ per year from ambient air at 500 ppm CO₂ concentration. The optimized avoided cost hardly differs across the three packing materials, ranging from $518/tCO₂ for M-CC to $568/tCO₂ for M-250Y. The $610/tCO₂ avoided cost for the APS-DAC design used M-250 Y but was not optimized; thus, optimization with the same packing lowered the avoided cost of the APS system by 7 % and improved packing lowered the avoided cost by a further 9 % The overall optimization exercise confirms that capture from air with the APS benchmark system or systems with comparable avoided costs is not a competitive mitigation strategy as long as the energy system contains high-carbon power, since implementation of Carbon Capture and Storage, substitution with low-carbon power and end-use efficiency will offer lower avoided-cost strategies.     

Competitiveness of terrestrial greenhouse gas offsets: are they a bridge to the future?

Activities to reduce net greenhouse gas emissions by biological soil or forest carbon sequestration predominantly utilize currently known, readily implementable technologies. Many other greenhouse gas emission reduction options require future technological development or must wait for turnover of capital stock. Carbon sequestration options in soils and forests, while ready to go now, generally have a finite life, allowing use until other strategies are developed. This paper reports on an investigation of the competitiveness of biological carbon sequestration from a dynamic and multiple strategy viewpoint. Key factors affecting the competitiveness of terrestrial mitigation options are land availability and cost effectiveness relative to other options including CO₂ capture and storage, energy efficiency improvements, fuel switching, and non-CO₂ greenhouse gas emission reductions. The analysis results show that, at lower CO₂ prices and in the near term, soil carbon and other agricultural/forestry options can be important bridges to the future, initially providing a substantial portion of attainable reductions in net greenhouse gas emissions, but with a limited role in later years. At higher CO₂ prices, afforestation and biofuels are more dominant among terrestrial options to offset greenhouse gas emissions. But in the longer run, allowing for capital stock turnover, options to reduce greenhouse gas emissions from the energy system and biofuels provide an increasing share of potential reductions in total US greenhouse gas emissions.     

Managing carbon-intensive materials in a decarbonizing world without a global price on carbon

Emissions from the production of iron and steel could constitute a significant share of a 2°C global emissions budget (around 19% under the IEA 2DS scenario). They need to be reduced, and this could be difficult under nationally based climate policy approaches. We compare a new set of nationally based modelling (the Deep Decarbonization Pathways Project) with best practice and technical limit benchmarks for iron and steel and cement emissions. We find that 2050 emissions from iron and steel and cement production represent an average 0.28?tCO₂ per capita in nationally based modelling results, very close to the technical limit benchmark of 0.21?tCO₂ per capita, and over 2.5 times lower than the best practice benchmark of 0.72?tCO₂ per capita. This suggests that national projections may be overly optimistic about achievable emissions reductions in the absence of global carbon pricing and an international research and development effort to develop low emissions technologies for emissions-intensive products. We also find that equal per capita emissions targets, often the basis of proposals for how global emissions budgets should be allocated, would be inadequate without global emissions trading. These results show that a nationally based global climate policy framework, as has been confirmed in the Paris Agreement, could lead to risks of overshooting global emissions targets for some countries and carbon leakage. Tailored approaches such as border taxes, sectoral emissions trading or carbon taxes, and consumption-based carbon pricing can help, but each faces difficulties. Ultimately, global efforts are needed to improve technology and material efficiency in emissions-intensive commodities manufacturing and use. Those efforts could be supported by technology standards and a globally coordinated R&D effort, and strengthened by the adoption of global emissions budgets for emissions-intensive traded goods.

Policy relevance

This article presents new empirical findings on global iron and steel and cement production in a low-carbon world economy, demonstrates the risks associated with a nationally based global climate policy framework as has been confirmed in the Paris Agreement, and analyses policy options to deal with those risks.     

Quota allocation rules in Romania assessed by a dynamic CGE model

Alternative mechanisms for EU ETS (European Union Emissions Trading Scheme) quota allocations within the Romanian economy were evaluated using a general equilibrium model within a dynamic intertemporal framework. Several distribution rules were simulated based on: the historical emissions, the least-cost approach, and the auctioning scheme with and without a preliminary selection of eligible sectors. We found that the resulting marginal abatement cost in ETS-eligible sectors is only €5.75/tCO₂ for reducing pollution by 20.7%. Such a low cost is explained by low energy prices and by substitution possibilities with low carbon content resources (nuclear and hydroelectricity). Including all sectors in the trade creates a more flexible market than in the ETS, since more reduction options are available. The ETS has high feasibility for monitoring. All eligible sectors (except refineries and metallurgy) present the lowest abatement costs in the economy. Auctioning introduces a strong carbon price signal, which reduces emission intensity but creates distortions in terms of trade and worsens the country's energy dependency. Environmental policy has modest macroeconomic results and tends to correct the resources allocation. The strong double dividend obtained under certain circumstances indicates Romania's potential for improving its energy efficiency and carbon intensity.     

Impacts of climate change on primary production and carbon sequestration of boreal Norway spruce forests: Finland as a model

The aim of this study was to estimate the potential impacts of climate change on the spatial patterns of primary production and net carbon sequestration in relation to water availability in Norway spruce (Picea abies) dominated forests throughout Finland (N 60°–N 70°). The Finnish climatic scenarios (FINADAPT) based on the A2 emission scenario were used. According to the results, the changing climate increases the ratio of evapotranspiration to precipitation in southern Finland, while it slightly decreases the ratio in northern Finland, with regionally lower and higher soil water content in the south and north respectively. During the early simulation period of 2000–2030, the primary production and net carbon sequestration are higher under the changing climate in southern Finland, due to a moderate increase in temperature and atmospheric CO₂. However, further elevated temperature and soil water stress reduces the primary production and net carbon sequestration from the middle period of 2030–2060 to the final period of 2060–2099, especially in the southernmost region. The opposite occurs in northern Finland, where the changing climate increases the primary production and net carbon sequestration over the 100-year simulation period due to higher water availability. The net carbon sequestration is probably further reduced by the stimulated ecosystem respiration (under climate warming) in southern Finland. The higher carbon loss of the ecosystem respiration probably also offset the increased primary production, resulting in the net carbon sequestration being less sensitive to the changing climate in northern Finland. Our findings suggest that future forest management should carefully consider the region-specific conditions of sites and adaptive practices to climate change for maintained or enhanced forest production and carbon sequestration.     

The contribution of forest carbon credit projects to addressing the climate change challenge

This article addresses the question of how forestry projects, given the recently improved standards for the accounting of carbon sequestration, can benefit from existing and emerging carbon markets in the world. For a long time, forestry projects have been set up for the purpose of generating carbon credits. They were surrounded by uncertainties about the permanence of carbon sequestration in trees, potential replacement of deforestation due to projects (leakage), and how and what to measure as sequestered carbon. Through experience with Joint Implementation (JI) and Clean Development Mechanism (CDM) forestry projects, albeit limited, and with forestry projects in voluntary carbon markets, considerable improvements have been made with accounting of carbon sequestration in forests, resulting in a more solid basis for carbon credit trading. The scope of selling these credits exists both in compliance markets, although currently with strong limitations, and in voluntary markets for offsetting emissions with carbon credits. Improved carbon accounting methods for forestry investments can also enhance the scope for forestry in the Nationally Determined Contributions (NDCs) that countries must prepare under the Paris Agreement.

POLICY RELEVANCE

This article identifies how forestry projects can contribute to climate change mitigation. Forestry projects have addressed a number of challenges, like reforestation, afforestation on degraded lands, and long-term sustainable forest management. An interesting new option for forestry carbon projects could be the NDCs under the Paris Agreement in December 2015. Initially, under CDM and JI, the number of forestry projects was far below that for renewable energy projects. With the adoption of the Paris Agreement, both developed and developing countries have agreed on NDCs for country-specific measures on climate change mitigation, and increased the need for investing in new measures. Over the years, considerable experience has been built up with forestry projects that fix CO₂ over a long-term period. Accounting rules are nowadays at a sufficient level for the large potential of forestry projects to deliver a reliable, additional contribution towards reducing or halting emissions from deforestation and forest degradation activities worldwide.     

A Review of Forest Carbon Sequestration Cost Studies: A Dozen Years of Research

Researchers have been analyzing the costs of carbon sequestration for approximately twelve years. The purpose of this paper is to critically review the carbon sequestration cost studies of the past dozen years that have evaluated the cost-effectiveness of the forestry option. Several conclusions emerge. While carbon sequestration cost studies all contain essentially the same components they are not comparable on their face due to the inconsistent use of terms, geographic scope, assumptions, program definitions, and methods. For example, there are at least three distinct definitions for a `ton of carbon' that in turn lead to significantly different meanings for the metric `dollars per ton of carbon'. This difference in carbon accounting further complicates comparison of studies. After adjusting for the variation among the studies, it appears that carbon sequestration may play a substantial role in a global greenhouse gas emissions abatement program. In the cost range of 10 to 150 dollars per ton of carbon it may be possible to sequester 250 to 500 million tons per year in the United States, and globally upwards of 2,000 million tons per year, for several decades. However, there are two unresolved issues that may seriously affect the contribution of carbon sequestration to a greenhouse gas mitigation program, and they will likely have counteracting effects. First, the secondary benefits of agricultural land conversion to forests may be as great as the costs. If that is the case, then the unit costs essentially disappear, making carbon sequestration a no-regrets strategy. In the other direction, if leakage is a serious issue at both the national and international levels, as suggested by some studies, then it may occur that governments will expend billions of dollars in subsidies or other forms of incentives, with little or no net gain in carbon, forests or secondary benefits. Preliminary results suggest that market interactions in carbon sequestration program analyses require considerably more attention. This is especially true for interactions between the forest and agricultural land markets and between the wood product sink and the timber markets.     

Challenges in developing effective policy for soil carbon sequestration: perspectives on additionality,leakage, and permanence

If carbon sequestration is to be a cost-effective substitute for reducing emissions then it must occur under a framework that ensures that the sequestration is additional to what would otherwise have occurred, the carbon is stored permanently, and any leakage is properly accounted for. We discuss significant challenges in meeting these requirements, including some not previously recognized. Although we focus on sequestration in soil, many of the issues covered are applicable to all types of sequestration. The common-practice method for determining additionality achieves its intention of reducing transaction costs in the short term but not in the medium to long term. Its design results in the least costly, additional abatement-measures being excluded from policy support and fails to address how, in the case of sequestration, revisions to the additionality of sequestering practices should apply not just to the future, but in theory, also retrospectively. Permanence is sometimes approximated as 100 years of sequestration. Re-release of sequestered carbon after this will not only reverse the sequestration, but may raise atmospheric carbon to higher levels than they would have been if the sequestration had never occurred. Leakage associated with sequestration practices can accumulate over time to exceed the total level of sequestration; nonetheless, adoption of such practices can be attractive to landholders, even when they are required to pay for this leakage at contemporary prices.

Policy relevance

Globally, much has been written and claimed about the ability to offset emissions with sequestration. The Australian Government plans to use sequestration to source much of the abatement required to reach its emissions targets. Designing effective policy for sequestration will be challenging politically, and will involve substantial transaction costs. Compromises in policy design intended to make sequestration attractive and reduce transaction costs can render it highly inefficient as a policy.     

Potential for forest carbon plantings to offset greenhouse emissions in Australia: economics and constraints to implementation

The theoretical potential for carbon forests to off-set greenhouse gas emissions may be high but the achievable rate is influenced by a range of economic and social factors. Economic returns (net present value, NPV) were calculated spatially across the cleared land area in Australia for ‘environmental carbon plantings’. A total of 105 scenarios were run by varying discount rate, carbon price, rate of carbon sequestration and costs for plantation establishment licenses for water interception. The area for which NPV was positive ranged from zero ha for tightly constrained scenarios to almost the whole of the cleared land (104 M ha) for lower discount rate and highest carbon price. For the most plausible assumptions for cost of establishment and commercial discount rate, no areas were identified as profitable until a carbon price of AUD$40 t CO₂ ^?1 was reached. The many practical constraints to plantation establishment mean that it will likely take decades to have significant impact on emission reductions. Every 1 M ha of carbon forests established would offset about 1.4 % of Australia’s year 2000 emissions (or 7.4 Mt CO₂ year^?1) when an average rate of sequestration per ha was reached. All studies that predict large areas of potentially profitable land for carbon forestry need to be tempered by the realities that constrain land use change. In Australia and globally, carbon plantings can be a useful activity to help mitigate emissions and restore landscapes but it should be viewed as a long-term project in which co-benefits such as biodiversity enhancement can be realised.     

Developing carbon budgets for UK agriculture, land-use, land-use change and forestry out to 2022

This paper derives a notional future carbon budget for UK agriculture, land use, land use change and forestry sectors (ALULUCF). The budget is based on a bottom-up marginal abatement cost curve (MACC) derived for a range of mitigation measures for specified adoption scenarios for the years 2012, 2017 and 2022. The results indicate that in 2022 around 6.36 MtCO₂e could be abated at negative or zero cost. Furthermore, in the same year, over 17% of agricultural GHG emissions (7.85 MtCO₂e) could be abated at a cost of less than the 2022 Shadow Price of Carbon (£34 (tCO₂e)^???1). The development of robust MACCs faces a range of methodological hurdles that complicate cost-effectiveness appraisal in ALULUCF relative to other sectors. Nevertheless, the current analysis provides an initial route map of efficient measures for mitigation in UK agriculture.     

Irrigated afforestation of the Sahara and Australian Outback to end global warming

Each year, irrigated Saharan- and Australian-desert forests could sequester amounts of atmospheric CO₂ at least equal to that from burning fossil fuels. Without any rain, to capture CO₂ produced from gasoline requires adding about $1 to the per-gallon pump-price to cover irrigation costs, using reverse osmosis (RO), desalinated, sea water. Such mature technology is economically competitive with the currently favored, untested, power-plant Carbon Capture (and deep underground, or under-ocean) Sequestration (CCS). Afforestation sequesters CO₂, mostly as easily stored wood, both from distributed sources (automotive, aviation, etc., that CCS cannot address) and from power plants. Climatological feasibility and sustainability of such irrigated forests, and their potential global impacts are explored using a general circulation model (GCM). Biogeophysical feedback is shown to stimulate considerable rainfall over these forests, reducing desalination and irrigation costs; economic value of marketed, renewable, forest biomass, further reduces costs; and separately, energy conservation also reduces the size of the required forests and therefore their total capital and operating costs. The few negative climate impacts outside of the forests are discussed, with caveats. If confirmed with other GCMs, such irrigated, subtropical afforestation probably provides the best, near-term route to complete control of green-house-gas-induced, global warming.