At the end of May, the Biden Administration published the Joint Policy Statement and Principles on Voluntary Carbon Markets. Farm CPA Paul Neiffer joined the AgriTalk podcast to break down the details of this 12-page document and what the ag industry needs to know.
According to Neiffer, part of the publication’s purpose is to steer companies toward more reliable methods of using carbon.
“You have these large, publicly traded companies that have been greenwashing. They’ve been trying to help the climate, so they go out and buy these credits that really aren’t very valid,” he says. “They’re trying to state the goals for these companies should not be to buy these carbon credits. Their goal really should be to fix their own carbon footprint in their own company and in their supply chain.”
Overall, he says the publication isn’t quite a policy, but more of a statement encouraging companies to clean up their supply chains.
When it comes to farmers, Neiffer believes the ag industry should begin focusing more on 45z tax credits and carbon intensity scores rather than carbon credits.
“It seems to be implying if you’ve already done a great job of reducing your carbon footprint, you’re not going to get a payment because you can’t really reduce your carbon footprint any further,” he says. “Whereas if you’re a farmer that maybe hasn’t done a great job [of reducing your carbon footprint], we’ll give you a payment because we can see in that case where we can reduce your footprint.”
For those who still intend to purchase carbon credits, the second half of the policy statement made an effort to create standards for program participation and make sure there is transparency, identification and documentation.
“They want to make sure it’s legit if you’re buying this carbon credit that you’re actually removing carbon dioxide from the atmosphere,” Neiffer says.
To hear more from Neiffer, listen to this episode of AgriTalk.
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