Following is a summary of changes the Alberta Government has confirmed regarding Carbon Credits. These changes will come into effect January 1, 2012, and they will have an effect on the tillage protocol and the net price you will receive:
1. The historic credits from 2002 to 2011 will not be accepted after January 1, 2012 for use for the 2012 compliance year or thereafter.
This means that farmers will not be able to sell any historic credits for the years 2002 to 2011 which have not been aggregated before 2012. However, farmers can still have their credits aggregated for those years now, and can still sell them to emitters to be used against those emitter’s compliance requirements for the 2011 compliance year, which ends December 31, 2011. Emitters will still be able to purchase 2002 to 2011 historic credits up to March 31, 2012 for the 2011 compliance year.
2. As of January 1, 2012, projects will have to be verified to a level of ‘reasonableness’.
This essentially means more costs for verification than we have now, another reason to use up the historic credits right away.
3. NO price increase is being contemplated at the present time above the $15/tonne level.
This means that those farmers that have been waiting for a price increase will likely not see a price increase BEFORE the historic years of 2002 to 2011 are eliminated.
4. We are anticipating that the credit/acre will decrease by about 1/3 after 2012.
The tillage protocol is up for review after 2012 and the crediting rate will go down. Another good reason to use up what you can now.
Series VIII Applications (for existing Alberta producers) are available now.
For more information or to sign up for the Carbon Credit Program, contact your DynAgra Business Development Specialist today.