Carbon Credits for Dummies
From A Composter’s Perspective
Overview and
the New CAR Protocol
What is the deal
with carbon credits, anyway?
Source #1 Emits 10
Source #2 Emits 10
But the standard drops
from 10 to 8!
#1 spends $10 and drops
emissions to 7.
#2 spends $10 and can only
get to 9!!!
For #2 to get to 8 would cost $20.
TOO EXPENSIVE!
But #1 sells 1 to #2
for only $10.
SUCH A DEAL!
Everyone wins!
• #1 is rewarded $10 for doing better than
they had to.
• #2 can afford to pay $10 more and keep
operating.
• The air benefits as if both met the standard.
How does this get the air cleaner
over time?
• Standards will get lower.
• Fewer credits will be available.
• Credits will get more expensive.
In the future, #1 and #2 will have
to choose between:
1. Upgrade plant and operations to meet new
standards.
2. Buy credits at the market price to meet the
standard.
3. Close.
What is the deal with composting
and carbon credits?
Landfills are Typically Anaerobic.
Organics (Anaerobic)
Methane (CH4) +
A little Carbon Dioxide (CO2) + Nitrous
Oxide (N2O)
Well managed composting is
Aerobic.
Organics (Aerobic)
Carbon Dioxide (CO2) +
A little Methane (CH4) + Nitrous Oxide (N2O)
Methane (CH4)
… is a really, really bad Green House Gas
(GHG).
Carbon Dioxide (CO2)
… is a less bad GHG.
So if you divert organics from a
landfill to composting, you
reduce GHG emissions and
... you may be able to generate and sell
Carbon Credits (tons of CO2e)
economically.
Several Registries and Protocols
to Choose From
others
Some are flexible and project
specific; others are not.
All require this.
Eligible projects must be:
1.
2.
3.
4.
Voluntary
Real
Additional
Verifiable
CAR
What composting is eligible?
• Only food waste and food-soiled nonrecyclable paper
• Only commercial and residential food
waste
• Non-industrial (no agricultural or food
processing)
CAR
What composting is eligible?
• Not other organics like green waste or
biosolids diverted from landfills (like
CCX)
• Not financial additionality (like VCS)
• Not project expansions (like VCS)
CAR Eligibility
• Start Date – Submit <6 months before
start date
• Location – U.S., territories & tribal
areas
• Performance Standard
• Eligible feed stocks (MSW food waste,
soiled paper, grocery store waste if
diverted from LF or new)
• BMP (time, temperature, turning)
CAR Eligibility
• Legal Requirement Test (Voluntary)
• Regulatory Compliance Test
Quantifying Emissions
• “Baseline Emissions” = what would have
been emitted if the organics were landfilled
• Assumed to decrease over time as more of
the landfill is covered and more CH4 is
recovered
Quantifying Emissions
Baseline GHG Emissions
- Composting GHG Emissions
GHG Reduction*
* In tons CO2 equivalents
Calculation must consider all
sources, sinks and reservoirs.
• Source – releases GHG to atmosphere
• Sink – removes GHG from atmosphere
• Reservoir – stores or accumulates GHG
Biogenic GHG does not count.
Anthropogenic GHG does count.
CAR uses standard, default
calculations for:
• Landfill GHG generation and emissions,
&
• Compost GHG generation and
emissions.
• And, CAR requires that the
eligible (food waste) portion of
the feedstock be measured.
Conclusions
1. Composting food waste and other
organics could be a source of C-Credits.
2. C-Credits could be of significant value
and improve economic viability.
3. There are several registries and
protocols to consider.
4. Each project should consider the
benefits and costs of each before
proceeding.
Risa Weinberger & Associates, Inc.
Risa Weinberger, P.E.
risa@risawassoc.com
214-340-8478