Ag Policy Blog

Chevrolet Buys CO2 Credits from Working Ranch Grasslands

Todd Neeley
By  Todd Neeley , DTN Staff Reporter
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The work by prairie pothole ranchers to maintain grasslands in North Dakota is being used by a General Motors company to improve its carbon footprint, in a new partnership USDA announced Monday that led to the purchase of 40,000 tons of carbon dioxide reduction credits.

A USDA grant was used to create the program that creates a market for carbon credits.

Chevrolet's first voluntary purchase of third-party verified carbon credits was undertaken to reduce 8 million tons of carbon dioxide from being emitted. The Detroit Free Press reported Monday that GM plans to spend about $40 million to make the CO2 reductions. USDA's Natural Resources Conservation Service awarded $161,000 through a conservation innovation grant to Ducks Unlimited in 2011 to develop a methodology used to quantify the carbon stored in the soil by avoiding grassland conversions.

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According to a USDA news release this is how the credit system works:

-Landowners voluntarily place lands in a "perpetual easement" while retaining rights to work the land. The Detroit Free Press reported Monday that the program includes about 11,000 acres on 11 ranches.

-The carbon storage benefits are quantified, verified and formally registered resulting in carbon credits.

-Carbon credits are made available to entities interested in purchasing carbon offsets. Landowners receive compensation for the carbon credits generated on their lands.

"The amount of carbon dioxide removed from our atmosphere by Chevrolet's purchase of carbon credits equals the amount that would be reduced by taking more than 5,000 cars off the road," U.S. Agriculture Secretary Tom Vilsack said in a statement. "This public-private partnership demonstrates how much can be achieved with a modest federal investment and a strong commitment to cut carbon pollution."

Public-private partnerships to enhance U.S. carbon sinks such as forests, grasslands, wetlands and coastal areas, are a part of the Obama administration's efforts to prepare communities for the impacts of climate change and enhance the nation's climate resilience. In October the administration announced a climate and natural resources priority agenda that represents a commitment across the federal government to support resilience of natural resources. The administration's agenda identifies a suite of actions the federal government will take to enhance the resilience of America's natural resources.

"While assessments on the future of agriculture and forestry show that climate change holds these and other challenges in the years ahead, American producers are longtime leaders in innovation, risk management and adaptation," USDA said in a news release. "USDA has supported these efforts for more than a century. Now USDA is developing new tools to help rural America create climate solutions and play a role in President Obama's comprehensive effort to reduce carbon pollution."

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Comments

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Jay Mcginnis
11/25/2014 | 9:51 PM CST
How much are you paying to dump carbon in the atmosphere?????
CRAIG MOORE
11/25/2014 | 5:46 PM CST
Jay, how much are you paying into highway fund when you are out driving that electric car? And I am not going to get into your hypothetical rants of "well, what about". Clinton started the ball rolling and that is all I said. Don't put words out there "well what about Bush" junk all the time. Try to stay on point.
Jay Mcginnis
11/25/2014 | 7:38 AM CST
Are you asking us to hand in our guns now Bruce? Your comment sounds very liberal.
Bruce Hanson
11/24/2014 | 6:40 AM CST
The comments on this blog are a microcosm of what's wrong with our country........ Hey, learn to play together. :)
Jay Mcginnis
11/22/2014 | 7:05 AM CST
That was 8 years into the Bush administration Craig,,,, so why is it offensive that Bush was blamed for the Iraq war and economical down turn back at 1 year in the Obama administration but Clinton can be blamed for derivative market 8 years after Bush was in office????? Kind of double standard if this is the case. Also I never said to run trucks and tractors on PV solar but lots of cars can be converted and lots of coal replaced with solar right now as it actually is going on.
CRAIG MOORE
11/21/2014 | 9:49 AM CST
Jay, didn't you get $362,000 in commodity subsidies over a 15 year period? What did you do to deserve that? And why do you never mention all the trucks and tractors that DON"T run on sunshine? And it was the deregulation of the derivative market that caused the collapse. You know, the bill Bill Clinton signed in 1999 that came to roost in 2007.
Jay Mcginnis
11/21/2014 | 6:08 AM CST
Well Gordon whatever state you call it it is working great for me, never have I made as much money, my health care is cheaper and just as good, I kept my Dr and things are so much better then when Bush was in office! I am not worrying about my bank folding, all my electricity and utilities are renewable energy, car is electric from non-poluting sources,,, things are just much better. Maybe you guys need to change your habits or work a little harder if things are so bad? I love my hope and change, it has worked very well for me and I am proud that this president took us from a collapsing economy to where we are now.
GORDON KEYES
11/20/2014 | 8:41 PM CST
No just middle class, but I am not envious of anyone who is richer than I am nor do I expect the Govt. to take away from someone else and give it to me for some dopey liberal idea of fairness. That is not how it works. One reason they are probably richer is they probably paid a lot more attention in school instead of looking out the window. We have a president billed as one of the smartest people in the world and is failing miserably at it. Socialism and collectivism only make everyone equally miserable this has been proven everywhere.
Don Thompson
11/20/2014 | 12:26 PM CST
Gordon, Your implication that GM and Solyndra represent government failures does require reexamination by anyone truly interested in the successes and failures of such programs. It is true that during the Obama tenure the rich have gotten richer and to a lesser extent the poor have increased worth too. I am just glad we have moved in that direction instead of the other. The policies of the incoming Congress would support a continuation of this direction so if you are in the top financial half - congratulations. Your anger towards the current state of our nation and your political affiliations are baffling since they seem to work in opposite direction.
GORDON KEYES
11/19/2014 | 8:49 PM CST
Face it your liberal president has turned out to be nothing but liar who is now a laughingstock. Black people got screwed big time the man they put so much hope in turns out to be a dictatorial narcissist who is now going to do nothing but punish the American people anyway he can. Obama s policies could do nothing but make the rich richer and poor poorer there is just no other way it could turn out.
Jay Mcginnis
11/19/2014 | 5:05 PM CST
There are many more reasons not to build the pipeline in fact Obama is waiting for the environmental impact study and then will probably ok it, its the GOP that wants to defy the LAW and not wait for the mandatory environmental impact study. I am sure it will go through but you know maybe for a farmer who doesn't need irrigation I should be for it, after all once the aquifers are poisoned grain will be worth much more? Of course Rush and Hanity will blame that on Obama for not enforcing environmental laws if that happens! Don is so right, Cap and trade and "Obama care" (aka "Romney care) were devised by the GOP but that was before it was hijacked by the part of tea. So maybe you guys should be careful for what you wish for? Oh and does Crony Capitalism include Haliburten, Exxon and BIG COAL?
GORDON KEYES
11/19/2014 | 9:33 AM CST
Not building the XL pipeline will not keep China from using more oil that is one of the goofiest reason for not building it I have ever heard . JAY I would stay away from subatomic particles if I were some of that stuff will affect your thinking. Cap and Trade is nothing but a power and money grab by a government that is out of control . Sending your money to the govt. and letting them tell you live, what temperature to keep your home and what kind of vehicle to drive and how many miles per gallon it must get no thanks not interested. There is nothing in cap and trade that will benefit the private citizen all benefits will go to the govt. then El Presidente can spread it around to the people who please him. Crony Capitalism GM GE Solyndra and the list goes on and on.
Don Thompson
11/19/2014 | 7:53 AM CST
Cap and Trade is another joint public/private program with its political beginnings in the early 1980's during the time of Reagan and expanded under GHWBush. (Smithsonian mag). Now, as with ACA, when used by the other side of the political aisle, it is an anathema to the always boisterous opposition since they can see no benefit from its application locally or internationally. Bonnie, I believe I understand how someone with a brain could see the benefits. Maybe you would explain how someone without fails to see any benefits.
Jay Mcginnis
11/19/2014 | 7:43 AM CST
Oh really Bonnie? For me things are so much better then when Bush was in office, sounds like you listen to much to hate radio. My bank account is much larger, nice illusion! Things are far better with a stock market at 17,000 over 5,000 but dream on for the good ole days! As for Curts concern about China's GHG emissions NOT building the Canadian XL pipeline will keep them from expanding oil use. As for Gordon Keys, Obama won the last election so is president and has use of the powers of that office, I am sure that the new Senate will be able to show off their insanity in the next 2 years, maybe get through "Cat in the Hat", "Horton Hears a Who" and other favorite readings of Ted Cruz all in time to unload the clown car full of GOP presidential hopefuls. SO I agree with you Bonnie,,,, how can anyone with a brain think the GOP has a benefit, after all there is still science and reality to deal with, carbon is real even though you can't see it, there are subatomic particles that are increasing in our atmosphere from burning fossil fuels. Climate change is real and no matter who wins what election it will continue.
Bonnie Dukowitz
11/19/2014 | 4:53 AM CST
How in the world, Jay, can anyone with a brain think these type of deals are a net benefit? Look at the end result rather than getting stuck on the first impulse based on a predetermined illusion.
W Lee Deutsche
11/18/2014 | 3:04 PM CST
MORE USEFUL USE OF A PUBLIC PRIVATE PARTNERSHIP WE HAVE IN EASTERN WILL COUNTY. WE HAVE EFFORTS TO "take"FARMLAND TO BUILD AN AIRPORT via PUBLIC PRIVATE PARTNERSHIP.
CRAIG MOORE
11/18/2014 | 12:31 PM CST
Yea Jay, tell us how your savior god has made a great treaty with the Chinese to where they get another 16 years before they have to START reducing their INCREASE of global killing gases while we double our decreases. Lordy, you are a rip. And how does a company help reduce air pollution by buying credits while still putting out the same amount of pollution.
GORDON KEYES
11/18/2014 | 10:31 AM CST
Barak Obama has been rejected in the last election and will do everything in his power to punish the American people with any agency he can find to sooth his gigantic ego. He will have an ongoing hissy fit for the next 2 years , much like the ramblings of Jay. You can lie only so long and people will eventually find out. The trouble Obama and the Democrats have is they say all of their lies on video and will always have it out there. They then throw a fit when they are found out. It really fun to watch.
Jay Mcginnis
11/18/2014 | 8:12 AM CST
What else would we expect from the party of dirty air and dirty water? As stated in the above 3 posts who cares about the environment as long as corporations make the most they can,,,, OH for the good old days of Bush when there war no regulations, bank failures, stock market of 5000 and falling, even my health insurance was $1100 more per year then and farm income was way down from this! Take us back dear GOP to the dream days of Iraq wars, 911 and anthrax! I can't stand this liberal socialist nation run by a Muslim terrorist who won't show his birth certificate!!!! LET US POLLUTE and live like good Christians!
tom vogel
11/18/2014 | 8:03 AM CST
"I have sighted the enemy...and he is we." The whole notion of carbon credits is as stated above by Curt and Bonnie. How low will our nation's mentality go before we wake up?
Curt Zingula
11/18/2014 | 7:16 AM CST
Smoke and mirrors - its not a reduction unless the Ranch was intending to plow under the grasslands! Here we are with an organic movement underway that wants to replace herbicides with tillage (CO2 release from tillage only one of many environmental setbacks) and the best we can do is give Chevy a break. Where's the MSM's outrage over B.O.'s deal with China? (like I have to ask!) B.O. will make the U.S. greatly reduce GHG while China, the world's worst GHG offender, gets to double their output and then cap it in 2030.
Bonnie Dukowitz
11/17/2014 | 6:13 PM CST
The whole package, bull! Give government motors corporation permission to pollute.