Harmonizing Emissions-Scoring Through Trade

Canada, the U.S. and EU are each working with different regimes aimed at reducing emissions in farming. Producers must establish foreign scoring mechanisms to maintain market access.

It’s been a wild ride in the carbon space in recent years. For a time, it looked like the markets had failed, when it came to light that early traders sold overvalued offsets discovered later to be almost worthless.

Carbon pricing in agriculture deserves paying attention to again now. Market mechanisms are sophisticated enough to alter trade flows, and improve harmonization.

Measuring the CO2-equivalency of other greenhouse gas emissions effectively communicates the true impact of synthetic fertilizers and other harsh emitters in agriculture. This transparency opens up new sources of funding for data and scores, i.e. markets for farms.