5.6. How will you manage the release of carbon from the soil in case of a loss event?

We declare a ‘loss event’ when a release of carbon from the farm’s soils occurs. This will need to:

  • be unforeseen in the management plan (i.e. planned cultivation is allowed);
  • be the result of management decisions and not weather events;
  • account for more than 5% of the emission reductions and sequestration achieved by you in the programme at that time.

If a loss event occurs:

  • Farmers will not have to return money already received;
  • Instead, a “buffer” is set up from the first year: 20% of generated certificates are placed in this buffer each year and cannot be sold;
  • In the event of a “loss event”, certificates from the buffer will be used to cover the carbon release;
  • The farmer will have to contribute the same number of certificates to the buffer again in future years before carbon payments resume;
  • If no losses are incurred, after 10 years the certificates in the buffer are sold and farmers will receive their payments.

5.5. Can I sell my carbon certificates myself?

No. The carbon certificates generated during the programme will be exclusively for sale via Soil Capital. Farmers are not allowed to sell or transfer carbon certificates to third parties but can refer potential buyers to Soil Capital.

5.4. Who will buy my carbon certificates?

Companies (both food and non-food companies) that want to support more responsible agriculture, whom we access through our sales partner South Pole. We do not sell the right to pollute: companies cannot claim carbon neutrality or offsetting through this mechanism. Our preference is to sell certificates to food companies; by buying your certificates, companies that also buy your crops can demonstrate that their supply chain emissions have been reduced.

5.3. Why do you withhold 20% of my certificates each year for 10 years?

We retain this percentage for 10 years in the buffer. The buffer serves as a mechanism to compensate for potential carbon losses (release) during the programme and to give reassurance on the permanence of carbon storage that your certificates represent to buyers. Each time a loss is confirmed during an audit, a corresponding number of certificates will be removed (cancelled) from the buffer to compensate for the loss. Certificates that are placed in the buffer will not be sold until the end of the 10th season after these certificates were generated.

5.2. What price are my Soil Capital Carbon certificates sold for / what will be my earning?

  • You will be paid a minimum of £23 per carbon certificate. 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.
  • The price of carbon certificates changes each year in line with the market, so your income will be adjusted each year.
  • Forecasts indicate that the price of carbon certificates will rise, but we cannot guarantee this. What we do guarantee is that for each certificate sold, you will never be paid less than £23 per carbon certificate based on the 1.2 GBP-EUR exchange rate. This is the floor price we have set ourselves.