Yes. If you are not yet sequestering carbon overall, you can generate carbon certificates (and therefore payments) by reducing your emissions and increasing your storage each year compared to your own personal baseline.
- Your potential earnings depend on your practices, context and efforts throughout the programme. It is therefore difficult for us to simulate your specific potential gains before you enrol. The baseline analysis already gives you an idea of your potential gains for the following year. A simulation tool will soon be available on our website to allow you to simulate your earnings before enrolment;
- Although it depends on your practices, it is not uncommon to store between 0.5 and 2 tonnes of carbon per hectare per year or to improve your carbon profile by 0.5 to 1 tonne of carbon per hectare per year. We make it a point to ensure that you earn a minimum income of £23 per tonne sold. In fact, we make a floor price commitment of €27.50 per certificate, which is £23 at a GBP-EUR exchange rate of 1.2; future prices are subject to the prevailing exchange rate at that time;
- A 200 ha farm that stores 1 tonne of carbon per ha per year would generate a net gain of at least £22,640 over the course of the programme, as per the below table.
|Minimum income per certificate||£23||£23||£23||£23||£23||£23||£23||£23||£23||£23|
|Certificates per hectare (carbon stored + 0.25 t/ha)||1.25||1.25||1.25||1.25||1.25|
|Min. Net gains||-£980||£3,620||£3,620||£3,620||£3,620||£3,620||£1,104||£1,104||£1,104||£1,104||£1,104|
- We do not make this guarantee. What we do guarantee is that each certificate sold earns the farmer at least £23. This is based on our floor price commitment of €27.50 per certificate, which is £23 at a GBP-EUR exchange rate of 1.2. Future prices are subject to the prevailing exchange rate at that time. What’s more, we guarantee that you will always receive about 70% of the final sales price, however high that sales price rises.
- We do also have a limited number of agreements that allow us to guarantee the sale of certificates for some farmers, thanks to the multi-year commitments already made by some companies;
- Typically, certificates will be generated and sold annually by our partner, South Pole. They are experts in the carbon markets, having mobilised finance for over 700 projects worldwide from their 18 global offices and network of corporate partners. There is every indication that demand for these certificates is currently outstripping supply. As an example, when we launched the programme, we had already pre-sold €500,000 worth of certificates that would be generated in the following years;
- Note also that 20% of all certificates generated will not be sold that year. They must be held in a buffer and will be sold 10 years later if you meet the loss prevention criteria.
If you start the programme sequestering carbon overall, each year we certify your GHG emission reductions and the carbon you have stored against a standard baseline for your region. In France, our approved methodology has concluded that this baseline is the same throughout the country: +250 Kg CO2e per hectare. This value represents the average amount of carbon that would be released from the soil per year if a regenerative farm reverted to current practices typical of the region today. So, if you are sequestering carbon, your certificates will be generated by comparing your sequestration to a fixed baseline of +250 Kg CO2e per hectare. We are in the process of assessing the regional baselines in the UK but do not expect major differences.
You will be paid each year during the carbon certificate crediting period (i.e. in years 1, 2, 3, 4 and 5) after the delivery of your mySoilCapital monitoring report.