Nitrogen fertilizer reduction for Dianchi

Lake in ChinaSean Penrith

Executive Director

Problem Statement Farming practices in Kunming are polluting Dianchi Lake

55% of the lake's fish population has been killed off by pollution

The lake water is rated Grade V (the worst grade) which makes the water unfit for agricultural or industrial uses

Problem Statement

Nitrogen is the key input to global agriculture and China uses over 1/3 of total nitrogen fertilizer produced Can be produced using either coal or natural gas; China uses mostly coal

Less than 50% of nitrogen is absorbed by plants

Unabsorbed nitrogen damages the environment Water pollution (ground and surface water)

Air pollution (Greenhouse Gas Emissions)

Nutrient management can help!

Nutrient Management Overview

Step 1: Farmers apply lessnitrogen fertilizers to theirfields

Step 2: Credits are generated fromthe resulting emission reductions

Step 3: Credits can be sold on the market and revenue returned to the farmer

Practices that reduce emissions

Reduction in application rate

Cover cropping

Injection into soil

Changing type of fertilizer

Changing timing of applications

Benefits of Carbon Trading

A cleaner lake

More revenue for farmers

Credits to comply with ETS

Reduce GHGs in atmosphere

Generation of Credits

The process is cyclical; the successful sale of credits causes more farmers to want to participate

Scale

Depends primarily on the credits per acre of a project

In the US, this is very low (usually less than 1 credit per acre)

Therefore it is important to be able to aggregate many fields together to make the project attractive to buyers

Data Needs

Based on nitrogen reduction methodologies based on the US corn belt (adaptation needed for Kunming pilot)

Each growing season is one year of the project

Projects need 5 years of historical data to establish a baseline condition

Key inputs needed:

Amount of nitrogen applied (baseline and project)

Nitrogen rate of fertilizer (baseline and project)

Precipitation and evapotranspiration data

Questions

Has NDRC approved any methodologies for nitrogen management on farms?

What crops are grown most often in Kunming?

Is anyone collecting data on nitrogen fertilizers being applied?

Who advises farmers on nutrient management practices?

How do applicable incentive programs interact with nutrient management practices?

The market

7 pilot trading schemes each allow offsets for 5-10% of compliance

National ETS to be launched in 2016

Offset projects allowed are based on CDM methodologies and focus primarily on renewable energy, fuel switching and capture/destruction of methane and other short lived pollutants

Thank you!

65 SW Yamhill St. Suite 400, Portland Oregon, U.S.A.

Ph. 503-238-1918 ext. 202

spenrith@climatetrust.org

www.climatetrust.org