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					Farm Economics & Environmental Benefits of
    The Cool Farm Tool & Carbon Credits

           November 2012 – Accra, Ghana

                   Andre Eitner
                  The Cool Farm Tool
• Developed By Unilever & the Sustainable Food
• Management Tool for Farmers and Advisor to
  manage inputs, outputs and environmental
                       Group Exercise
• Let’s decide on one major African annual & one
  perennial crop
• Let’s build a hypothetical farm
  –   Size
  –   Yield
  –   NPK Inputs
  –   Etc.
• Afterwards we can model certain management
  changes (composting, tillage, forestation)
                    The Concept of Carbon
• Underlying principle:
  – You get rewarded for emission reductions
  – Per ton of C02 reduced, you get one credit
  – These credits can be sold to the industry or other
    market participants
• Reality is quite complex
• Project Development is very expensive & Cool
  Farm Tool can help to identify potential to
                     Example in Kenya
• Project with 60.000 small-scale farmers
• Swedish NGO and local partners designed and
  implement this project
• Farmers will be taught how to adapt
  sustainable farming practices like agroforestry,
  composting, low tillage and others
• Goal: Sequestration of Carbon on Farm and
  Reduction of Emissions from Fertilizer etc.
                    Example in Kenya
• Approx. 4 tons of carbon sequestered per
• Project will reduce emissions by more than 1
  Million tons of C02 = 1 Million Credits
• Price Range: 3-15 $ per credit
• These Credits are sold on the market to
  finance the work of the project
• Farmers main benefit is training
• These Projects are:
  – Difficult to plan, to implement and to certify
  – If it works, they work really well and can
    contribute to development
• Get Advise from Trusted partners (GIZ, SMI,
  IFDC, others) to avoid expensive failure
                 Thank You

29/11/2012     8

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