皇家华人

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Where do I get started with net zero?

The best place to start is with our ‘We’re in for net zero’ pledge. You can see what other members have pledged, and by joining in the #Pledge2040 campaign you will help the sector reach its 2040 ambition.

Just starting your net zero journey? The Farm Status Indicator is your introduction to carbon footprinting. The tool isn't a comprehensive carbon calculator, but it aims to provide a quick and easy guide to the practical measures you can put in place on your farm to reduce your agricultural greenhouse gas emissions.

How do I go about a GHG footprint?

We recommend that you consider carrying out a GHG footprint to establish a baseline so you can benchmark farm business performance, and plan to repeat this every few years.

Defra are working on research looking at inconsistencies between the calculators which should provide more assurance in the results.

How do I get the value from net zero measures I make?

Many downstream customers are increasingly declaring net zero ambitions and look to their supply chain emissions which make up part of their total emissions. It is incumbent on all business in all sectors to reduce GHG emissions, so every part of the value chain needs to make changes to reduce emissions. It will eventually be seen as business as usual, like welfare standards.

皇家华人is working to ensure that farmers can share in this carbon value, although at present there is no premium paid for low carbon produce.

What should I consider when looking at carbon offsetting?

EnZero, with the NFU, is carrying out a three month rapid market assessment project on carbon offsetting to explore the market opportunities for members and the NFU’s potential role in assisting members.

Tell me more about trading carbon...

Currently, to be in a position to trade carbon, members need to verify that projects: 
•    comply with emerging measurement, reporting and verification (MRV) standards of GHG quantification
•    are publicly registered and independently verified
•    have management plans over their lifetime  

Existing national verification:
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These are the mechanisms to open up funding for ecosystem benefits which give reassurance to buyers to invest in woodland creation and peatland restoration projects and land managers have clear standards to follow. A soil carbon code is under development.

What do I need to consider when approached by offset service companies?

There are a few things you'll need to think about:
•    Maintenance – carbon offsetting is long term so maintenance over years must be factored in.
•    Verification – as above.
•    Business implications – check the impacts on all parts of the business.
•    Be cautious – check advice and contracts.

There are other independent MRV standards working in the voluntary offset market; Verra and Gold Standard are the leading issuers. The voluntary carbon market is aimed at the corporates wishing to offset.

What about the Sustainable Farming Incentive?

Defra has expressed that within the Sustainable Farming Incentive (SFI) it does not want double funding of land under more than one scheme and they would like to see this extended to private market for the delivery of public goods on the same land. 皇家华人is working to clarify the situation.

What should I do if I am asked to sign a contract for carbon credit certification?

If the overall service that is being offered is something that you are interested in, then you should read any proposed contract (sometimes referred to as ‘terms and conditions’) very carefully to make sure you are clear what your obligations are, what you will be receiving, and any relevant price implications. 

It is also important to note that as these contracts are private agreements, it is not clear whether this could lead to the exclusion of land or activities that are part of this type of agreement from future support through Environmental Land Management schemes (ELM) or other publicly funded support schemes; it is normal practice not to use public money to fund activity that is paid for through another route. There are also provisions in the Environment Bill which may have an impact on carbon trading activities, so it is important for you to consider these aspects before agreeing to any new contract, and to seek professional advice. 

What do I need to look for in contracts?

In addition to the above, the key things to look out for in any contract are the following basic terms:

• Who are you contracting with? Is it worth conducting a credit check on the company? Who is responsible for any payment and on what terms?
• What? What are you agreeing to supply? What are you getting in return? 
• Where? Where on your farm will any change in production practices be required? Is this left to your discretion? Is there a minimum area required?
• When? When will you get your certification? What is the trigger for receipt? When do you have to pay any fees?
• How? How will your emissions reductions be calculated? How will you obtain payment once you have received the relevant certification? How much do you have to pay for the certification and when do you have to make that payment?

As with any new contract, it is highly advisable to seek independent legal advice to make sure that you understand what you are signing up to. This is even more important for a contract in a novel area, or for a contract for a service that is more complex than simply buying and selling physical goods. 

And finally, what do we mean by productivity? 

Productivity is not necessarily about increased production. We use the definition ‘using fewer inputs to produce the same or more output’, in other words this is about resource use efficiency. For net zero, the use of fewer inputs would mean reduced GHG emissions. You can watch our NFU Live session: The Path to Productivity again here.