Emission Credits Corporation (ECC), an agricultural aggregator of sequestered carbon offsets produced exclusively from farmland in Alberta, announced today that the company has entered into a partnership with World Energy Solutions, a U.S. provider of online exchanges for energy and environmental commodities. ECC plans to auction off 500,000 tonnes of carbon reduction offsets on World Energy's World Green Exchange online auction platform.

This announcement comes on the heels of ECC's recent statement announcing the successful sale of approximately 400,000 tonnes of agricultural-based emission reduction offsets to TransAlta Corporation. The Alberta-based power generator purchased the offsets to comply with the Alberta Climate Change and Emission Management Act, which came into effect July 1, 2007.

ECC is Alberta's largest agricultural aggregator of sequestered carbon offsets produced exclusively from farmland in Alberta. "This is the beginning of an exciting value-added revenue opportunity for the farm communities of Alberta using their best farm environmental practices," ECC president Marjorie Malinowski said in a previous statement. "We look forward to partnering with World Energy to bring more carbon offset supply to the market and help emitters meet their emission reduction obligations," she added.

What are offset credits?

Offset credits are instruments created by government that represent one tonne of greenhouse gases reduced from the atmosphere. They are created by an emission reduction action taken by an individual or company and verified independently in accordance with a government-approved protocol. They can be bought or sold, and retired upon delivery by the owner to meet government emission reduction compliance targets.

Who are the buyers?

All Alberta facilities that emit more than 100,000 tonnes of greenhouse gases a year are called Large Final Emitters (LFE's) and are required to reduce their emission intensity by 12 per cent of baseline under the Act (effective March 31st, 2008) and an additional 2 percent per year thereafter.

How does the Alberta Offset System work?

Large Final Emitters have three ways to meet these targets.

• They can reduce actual GHG emissions (this is done with the implementation of new equipment and much of it will occur as new technology is implemented which will take time to develop and test).
• They can pay into the Alberta government Technology Fund (a $15.00 per CO(2)e (per GHG Tonne) fee that is to be used to encourage the development of new GHG technology)
• They can purchase offsets from Aggregators such as Emission Credits Corporation who are able to demonstrate real, quantified and audited GHG initiatives (for this to happen protocols, verification, registration and clearing systems are required).

How much do buyers need?

Currently information suggests the need to satisfy the requirements of Large Final Emitters in Alberta is in excess of 20 million tonnes, annually. Large Final Emitters want to purchase in volumes of at least 100,000 tonnes of CO2e, which means that most farmers within the province would be excluded from participation if they could not contract with an Aggregator. The Carbon Offset Supply Association of Alberta ("COSAA") is the organization that represents about fifteen aggregators in Alberta. Each aggregator has its own business plan, using unique contracting and program methods.

How can farmers participate?

Agriculture has a tremendous opportunity to accelerate the adoption of technology or make changes in best management practices that will enhance the GHG strategies of both the Province and Federal Governments. ECC believes the key to helping Canada meets its targeted obligations is through a development of a market-based structure within a federal policy framework that encourages the adoption of soil-based GHG reductions and removal initiatives. Farmers can make changes in practices faster that most other industries who have large facilities with complex equipment and technologies. Agriculture can use the soil carbon sequestration and farming practices that will help the environment by creating Offset Credits (Carbon Offsets?) that are used by industry to meet their obligations. However, in order for the Offset Program to be successful, more protocols are necessary to meet the growing demand. We encourage governments to recognize that Agriculture can provide immediate opportunities for large reductions that help the environment now if the incentive for farmers encourages continued environmental best management practices.

Emission Credits Corporation created the opportunity for generating carbon offsets from the direct and indirect reductions of greenhouse gas (GHG) emissions that implement no-till and reduced till soil sequestration systems on agricultural lands, along with their own suite of custom protocols that they have developed and submitted to the Alberta Government for approval. We are currently working towards increasing the opportunities for farmers to collectively participate with us in the offset trading market.

As a member of COSSA, Emission Credits Corporation is working hard to help expedite the approval of a broad range of protocols that would encourage agricultural producers to adopt practices and technologies that would reduce GHG emissions and increase the rate of GHG removals. We share the belief of the other members of COSSA that we need to encourage a domestic and international trading system that will ensure maximum liquidity and international recognition for the carbon sequestration offsets produced through Agriculture.

"We're pleased the Alberta Government adopted security for the Large Final Emitters by including an assurance factor in their protocol development," added Malinowski. "This Assurance Factor goes a long way to provide the additional confidence necessary for Large Final Emitters. Carbon Offsets produced from carbon sequestration is extremely safe since it relies on science and research collected over the past forty years right here in Western Canada."

Emission Credits Corporation goes one step further in risk management by mitigating risk for their clients through an insurance policy with Lloyd's of London. This means that clients are protected from a Large Final Emitter requesting a refund.

"We will continue to build on our initial success and increase our carbon offset supply to meet the growing demand for top quality, science-based offsets for the compliance market in Alberta," Malinowski said.

About Emission Credits Corporation

Emission Credits Corporation is a privately owned Corporation operating primarily in the Province of Alberta. It gathers and quantifies carbon offsets produced through agricultural activity on behalf of its farmer/suppliers through its copy-written aggregation program.

Organization name: Emission Credits Corporation
Phone: .
Country: Canada