Dear Stakeholders,
It has been five years since the first meeting of the Baker Institute working group that eventually became BCarbon. In our last Stakeholder meeting of 2024, we began with a reflection on our journey as an organization and our current transition from the “startup” period into a more mature phase. Our CEO, Jim Blackburn, kicked off the discussion with a thank you to our stakeholders, who have been instrumental in our progress.
Reflecting on our year in review and looking towards the year ahead, we outlined our current activities in each of our protocol areas. On the soil front, we have a major South American ranchland project incoming, as well as seed treatment projects in North America. We highlighted our work with Veteran’s Carbon Holdings, involving 24 producers spanning 188,000 acres in North Dakota, Minnesota, and Florida. The project is anticipated to grow to 1,000,000 acres in 11+ states by 2026. It uses seed coatings that enhance nutrient absorption and provide numerous co-benefits, including increased yields, enhanced availability of water-soluble nutrients, and heightened microbial activity.
On the forest carbon side, we have a large forest insetting project in the works. Methane has become very active, with 7 wells plugged under our Protocol and LOIs for 45 more. Coastal blue carbon continues to progress, and 100+ miles of shoreline are in various stages of discussion and development. Our recently announced Living Shoreline Pilot, funded by Valero, will see the construction of a stretch of living shoreline in the Galveston Bay area. This project will be discussed in greater detail at our Living Shorelines Subcommittee meeting in December. It will also be the subject of a course at Rice next spring.
Next up, Engineering Analyst Emmanuel Ellerbee provided some updates on our Small Landowner Carbon Cooperative project, which seeks to create a cooperative of small-acreage forest landowners. We recently completed a case study on the project that will be part of a Massive Online Open Course at HEC Montreal, a business school in Québec. In addition, we hosted the first meetings of the project’s Steering Committee, the group of landowners overseeing the rollout of the project.
Next up, Research and Policy Manager James FitzGerald gave updates on our Harvested Wood Protocol. This project, funded by Rice Management Corporation, is a collaboration with Larson & McGowan, Gensler, and a sawmill. It aims to harness and enhance the 30-year carbon sequestration cycle of southern pine. The protocol establishes methods for issuing Harvested Wood Credits based on carbon stored in long-lived wood products that pass through sawmill processing. The methodology focuses on maximizing carbon storage through sustainable management of the forest and efficient processing at the sawmill. Most of the protocol has been drafted, and we will be working out the remaining questions in the coming months.
Building on the themes of the RMC protocol, Rives Taylor and Suryabala Sah of Gensler presented on the green architectural standards used by architects. They talked about how the RMC protocol has the potential to bridge gaps in the architectural industry. In addition, they spoke about the standards and certifications they work with as architects, including LEED (Leadership in Energy and Environmental Design) and EPDs (Environmental Product Declarations). These systems are important to the wood chain of chain of custody from a forest to a finished building.
Director of Programs Sarah Swackhamer then provided some market and policy updates. She began with a series of updates on the activities of the Commodity Futures Trading Commission (CFTC). First, she discussed the publication of CFTC’s finalized Guidance on the disclosures required for derivative contracts based on underlying voluntary carbon credits. Key changes from the Proposed to Final Guidance are discussed in detail in the Federal Register. In addition, last month, CFTC issued 2 consent orders and a complaint against a carbon project developer for fraud and false, misleading, or inaccurate reports related to voluntary carbon credits. This is the CFTC’s most direct action to date targeting fraud in the voluntary market.
Closer to home, $134.1 million was recently awarded to TCEQ under IRA’s Methane Emission Reduction Program, to provide financial incentives for owners and operators to voluntarily plug and abandon marginal conventional wells. BCarbon submitted comments to TCEQ’s draft Well Prioritization Plan proposing collaboration with carbon crediting groups to extend the use of these funds. Additional guidance and updates will be available from TCEQ in January of 2025.
Meanwhile, debate on Article 6 has concluded in Baku at COP29. During our meeting, Sarah discussed how UN-set standards around carbon trading may impact demand and trends within the voluntary space, particularly as a recent IETA survey of 100+ companies found 83% of respondents are willing to pay higher prices for Article 6-aligned credits. Deliberations on Article 6.4, which would create a global carbon market overseen by the UN’s Article 6.4 Supervisory Body, are particularly relevant to the VCM, as the resultant registry will likely be accessible to companies and individuals as well as companies. With the Conference now concluded, we’ll be watching its aftermath closely and plan to report back in January with further updates.
Finally, we gave a brief update on the ongoing work of SBTi to revise their Corporate Net Zero Standard. These revisions may provide a pathway for carbon credit inclusion, particularly through the expansion of strategies for meeting scope 3 targets.
To close out the meeting, we previewed the launch of next month’s Stakeholder Survey, which will give you an opportunity to tell us about yourselves and what feedback you have for us. We’re interested in your ideas on communications strategy, meeting frequency, topics of interest for upcoming meetings, and whatever else you feel is important. We will be accepting thoughts on important topics to be included through today, November 25. The Survey will be sent out in December, and results will be discussed in a 2025 full-group meeting.
You can view the compiled slides from the meeting here:
Upcoming Meetings:
Living Shorelines subcommittee: December 4th, 1 PM CT
Insurance subcommittee: December 12th, 10 AM CT
Next full group meeting: February 13th, 2025, 9 AM CT
note: we are moving our first meeting of 2025 from January to February.
To be added to any meeting, please contact Sarah (Sarah.Swackhamer@BCarbon.org)
All meetings held via Zoom.
You can also access our upcoming schedule any time on our website’s events page. If you have questions, comments, ideas, or concerns, please feel free to email, call, text, or set up a Zoom.
As always, thanks for your support and input. Wishing you a wonderful Thanksgiving!
Best,
BCarbon