[Terrapreta] Economics of biochar

Tom Miles tmiles at trmiles.com
Sun Dec 30 18:03:37 CST 2007


Rick,

 

I believe that in the US the end user (farmer) is the primary beneficiary of
the carbon credits. The credits are brokered by a third party such as the
Climate Trust (http://www.climatetrust.org )in a similar structure to the
UNFCCC CDM procedure with third party verification. The farmer can assign
the rights to the producer by agreement.  

 

Tom

 

Who receives the benefits - a good question Could it not be a bit simpler
that your explanation in the first para below?
- the original producer of the biochar could sell the carbon offsets to
intermediaries like Climate Care, and the physical biochar to actual users,
like farmers (perhaps). The actual users of the may benefit by getting
access to biochar at cheaper prices, because its production could be cross
subsidised by the charcoal producer's income from carbon offsets. 

I dont think selling the offsets down the supply chain along with the actual
biochar would be a good idea, because when the holder of the offsets wants
to sell them they would have more difficulty verifying details of how it was
originally generated. 

But in the case of past research on biochar, these offset rights may have
effectively been passed on, rather than sold by the original producer of the
biochar. 

Your estimate of the value of a CO2  credit for biochar at $100/ton is
interesting. It represents a significant fraction of the biochar production
cost quoted for Best Energies in a earlier posting today by Michael

regards, rick, late at night, need to sign off now... 

regards, rick

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