The Inflation Reduction Act (IRA) is incentivizing the agriculture industry to turn their crops and wastes into renewable energy through biofuel. With $140 billion tax credits, renewable energy projects are eligible for financial support in the form of loans, grants, and other incentives to move away from fossil fuels. Biofuel producers are eligible to receive corresponding renewable energy certificates or carbon credits in accordance with how much carbon their project reduces or removes. One of the biggest projects that IRA supports is Gevo, a biofuel producer operating in Colorado that will produce aviation fuel from processing corn crops. Gevo’s plant will be eligible for a clean fuel tax credit and additional tax credits for capturing and storing CO2, as well as generating carbon credits. The agriculture industry is also responsible for a significant portion of greenhouse gas emissions, and farms focusing on producing energy from clean and renewable sources can significantly reduce these emissions. Crop growers also have a role to play in keeping carbon locked in the soil, which can earn them carbon credits. Soil carbon credits have been becoming popular in the US voluntary carbon market, but quality issues have arisen due to a lack of global standards for measuring changes in soil carbon stocks. The Integrity Council for the Voluntary Carbon Market has recently released its Core Carbon Principles to set global standards for high-quality carbon credits based on climate, environmental, and social factors, bringing credibility and integrity to soil carbon and other types of credits.
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It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...
