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The administration should find the courage to reverse course and acknowledge that carbon offsets are a dangerous and damaging distraction.
As U.S. President Joe Biden seeks to regain American leadership in the global fight against climate change, his administration has embraced using “carbon offsets” in international carbon markets.
Acknowledging widespread criticism of the reliability of these offsets, on May 28, the administration issued a “Voluntary Carbon Markets Joint Policy Statement” signed by the secretaries of the Treasury, Agriculture, and Energy, among other officials. However, nothing in the statement overcomes the inherent flaws that make carbon offsets a dangerous distraction.
The urgency of the climate crisis means that the planet does not have time to engage in illusory market-based trading schemes that pretend to counterbalance—rather than actually reduce—greenhouse gases emissions.
The Administration’s Policy Statement lays out a set of aspirational “principles” for certification of carbon credits to allegedly ensure they “meet credible atmospheric integrity standards and represent real decarbonization”:
• Additional. The activity would not have occurred in the absence of the incentives of the crediting mechanism and is not required by law or regulation.
• Unique. One credit corresponds to only one tonne of carbon dioxide (or its equivalent) reduced or removed from the atmosphere and is not double-issued.
• Real and Quantifiable. Claimed emissions reductions or removals represent genuine atmospheric impact that is determined in a transparent and replicable manner using robust, credible methodologies. Relevant activities are designed to prevent emissions from occurring, being shifted, or intensifying beyond their boundaries as a result of the activity (‘leakage’).
• Validation and verification. Activity design is validated, and results are verified, by a qualified, accredited, independent third party.
• Permanence of greenhouse gas benefits. The emissions removed or reduced will be kept out of the atmosphere for a specified period of time during which any credited results that are released back into the atmosphere are fully remediated.
• Robust baselines. Baselines for emissions reduction and removal activities are based on rigorous methodologies that avoid over-crediting, prioritizing the use of performance benchmarks…
However, this list of goals highlights why reliance on carbon credits has only produced illusory benefits and counterproductive results.
The Biden administration is not proposing enforcement mechanisms that would ensure these core qualities are reflected in international credit transactions, because such mechanisms do not exist. Without enforcement these “guardrails” are merely a wish list, tantamount to a store combatting shoplifting only by putting up signs that say, “Do Not Steal.”
It is also clear that the amount of money these carbon markets are poised to generate, bolstered by Biden administration support, is enormous. The temptation to game a multi-billion-dollar system that has no enforceable rules is overwhelming and will help keep us addicted to business-as-usual emissions.
At the same time, the urgency of the climate crisis means that the planet does not have time to engage in illusory market-based trading schemes that pretend to counterbalance—rather than actually reduce—greenhouse gases emissions.
Experts who have studied carbon offsets, like Barbara Haya at University of California, Berkeley, have found they are inherently flawed for a host of reasons and cannot be reformed. A clear indication that carbon offsets are unfixable is that virtually all carbon offset projects created to date are built on activities that were already happening, for reasons other than the generally low and volatile price of offset payments. And, to date, no one has even proposed a reliable way to distinguish those activities that would have happened anyway. In addition, since carbon offsets must be based on activities that are not legally required, they create a perverse incentive to delay appropriate regulation.
With forest projects, these problems are compounded by their impermanence, which is heightened by warming-accelerated wildfires. In addition, the integrity of forest projects is easily undercut by demand shifting. If one forest is preserved but demand for wood is not reduced, another forest will be cut.
Together, these factors highlight that the administration’s wish list of guardrails is completely out of touch with the reality of carbon offsets. As California is discovering, reliance upon its highly touted carbon credit market is resulting in far more emissions than an effective regulatory program.
The administration should find the courage to reverse course and acknowledge that carbon offsets are a dangerous and damaging distraction. Offsets undermine our ability to adopt effective strategies to achieve our climate goals. These include ending fossil fuel subsidies and supporting enforceable regulations. Other key provisions would be transparent polluter-pays carbon pricing, programs to ensure energy affordability during a transition away from fossil fuels, public investments in clean energy transmission and transit, and international agreements with easily measurable results. Effective U.S. leadership would mean developing a national climate law worthy of the moment and building public support for its enactment. This country’s environmental laws have transformed our nation and been influential elsewhere. They should be our inspiration.
We understand that carbon credits seductively offer to harness powerful market forces and raise money for climate-positive projects. However, this siren’s call has all the integrity of a Ponzi scheme. In short, as the U.S. has repeatedly experienced, meaningful reductions in pollution require the inescapable hard work of designing programs with reliably measurable outcomes and enforcing them.
There are better responses to the climate crisis that also treat rural people and our land, air, and water with respect.
There has been much media hype about manure digesters and how they will “solve” climate change by capturing and burning methane from confined animal feeding operations or CAFOs—aka factory farms. Billions in taxpayer handouts and other incentives through pollution offset trading markets are encouraging factory farms to expand and profit from their waste stream. Some economists now speculate that factory farms are earning more from making methane than milk!
A recent Friends of the Earth and Socially Responsible Agriculture Project report
goes even further, suggesting that if the U.S. really wanted to reduce it’s agricultural contribution towards greenhouse gases, it would make more sense for regulators to phase out or split up CAFOs and shift taxpayer support towards smaller grass-based livestock operations instead.
Sadly, the misguided notion of manure digesters as a “solution” to the climate crisis is nothing new. Back in 2009 at the United Nations Climate Change Conference in Copenhagen, I almost fell off my chair when then-U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that manure digesters on factory farms were going to be a key part of former President Barack Obama’s climate change agenda. He later admitted that less than 10% of dairy farms (ie CAFOs) would be large enough to qualify for these USDA digester grants—another example of how federal policies support industrial agribusiness to the detriment of smaller farmers.
Intentional factory farm production and subsequent “climate smart” combustion of methane is not only oxymoronic, but will undermine the future prospect of life here on Earth.
This manure digester building binge has ramped up even more under President Joe Biden—with Vilsack once again back at the helm of the USDA. The latest Instititue for Agriculture and Trade Policy report critiquing the Environmental Quality Incentive Program (EQIP) reveals just how much of this popular USDA effort has been hijacked by a small elite number of CAFOs, to the detriment of the majority of farmers who have their EQIP applications declined. Encouraging livestock grazing is NOT front and center among “climate smart” practices promoted under EQIP and the Natural Resources Conservation Service—that star role is held by waste lagoons and manure digesters.
A typical CAFO digester for 2000 dairy cows costs over $2 million, with EQIP covering up to $400,000. But there are many other funds available, such as through the Rural Energy for America Program (REAP), which bankrolled $78 million for digesters in the last decade. The recent Inflation Reduction Act (IRA) added another $250 million to EQIP, along with another $2 billion for REAP, including a brand new 30% tax credit for all new digesters built.
The current trough of taxpayer funding for the manure methane industrial complex is long and deep, but there is even more potential revenue to be milked. In Wisconsin alone there are now 15 manure digesters getting money for their methane offsetting of 1.3 million carbon credits available through the California Cap and Trade System. How does this work? Build a methane digester in Wisconsin, claim that by burning off this really bad methane it is equal to reducing the impact of so many tons of carbon dioxide emitted in California, and then get a bonus check for that hard offset work! The value of one carbon credit on the California market as of April 2023 was $28.66.
The problem with this taxpayer mandated and subsidized “cap and trade” system is that it does not necessarily reduce overall greenhouse gas emissions—it just moves pollution around (and the atmosphere doesn’t care about your zipcode). Worse yet, if your offset claims prove to be bogus and corrupt, the climate crisis ends up much worse. This was exactly the case when Midwest activists alerted California officials that some of the Wisconsin CAFOs claiming methane offset credits were really engaged in wire fraud, since their digesters were either broken or not effectively functioning to capture methane as claimed. More details can be found in the SRAP expose of this 21st century Ponzi style scheme. Along with many allies, Family Farm Defenders has been diligently opposing such corporatized pollution trading mechanisms through the Alliance Against Farm Bill Offsets, whether they involve offsets for carbon sequestration pipelines, manure digesters, or “no-till” GMO monocultures.
My gut reaction 15 years ago to Vilsack’s manure digester panacea to global climate change remains true today—why pay to fix a problem that doesn’t even need to exist? Countless studies have shown that the most cost effective, eco-friendly, and often quite profitable form of animal husbandry—including dairying—is managed rotational grazing. If animals are just allowed to enjoy pasture outside (as they prefer and are meant to do by mother nature) and then also allowed to deposit their manure in a healthy perennial ecosystem, one does not end up with a methane crisis. It is only when one decides to confine thousands of animals in a warehouse, offer them nothing but TMR to consume (with dubious components like feather meal and ethanol leftovers), liquefy millions of gallons of their manure, and then store it in massive anaerobic lagoons, that one creates a pollutant 80+ times worse than carbon dioxide.
Sure, one can always capture and burn the methane that doesn’t leak from a CAFO digester to make electricity or run a vehicle (which means more greenhouse gas pollution), but you still have the leftover sludge (aka digestate) to deal with. This is loaded with nitrates, phosphorous, and—depending upon what other waste gets dumped into the digester—PFAS, pharmaceuticals, agrochemicals, heavy metals—which will then seep into the ground and became part of runoff, contributing to tainted wells, beach closures, toxic fish, the list goes on and on. Besides methane, there are other toxic CAFO gases—such as hydrogen sulfide, ammonia, and nitrous oxide—that cause chronic headaches for neighboring residents and hurt anyone else downwind.
And let’s not forget the ever present danger of methane explosions and lagoon ruptures. When a massive lagoon leaked on a hog factory farm in Wayne County, North Carolina, in May 2022, spilling into the nearby Nahunta Swamp, it was revealed that hundreds of rotting pigs, along with deli meat and discarded hotdogs, were part of the digester feedstock to make the methane being sold to Duke Energy. Closer to home, just ask anyone who lives near Waunakee, Wisconsin, what it was like to have a poorly designed and managed digester both explode and also leak 400,000+ gallons of fresh manure into Lake Mendota about a decade ago. This single disaster set back Yahara Watershed cleanup efforts for years. It would have been so much cheaper, simpler, and less disastrous for Wisconsin state and Dane County taxpayers to have promoted composting instead (which some better CAFOs actually do, without lagoons).
In November 2022 Kari Lydersen wrote a disturbing investigation, chronicling the many risks to farm workers from factory farms and their manure digesters. She tells one story of Bob Baenziger, Jr., retired Army veteran and former offshore oil rig diver, who died in 2021 as a hired contractor trying to fix a broken cable in an Iowa manure digester. Drowning in such a squalid pool is something straight out of Dante’s Inferno. The same year Samuel Antonio Padilla Castro, a Honduran immigrant, was working a 12-hour shift at the Fair Oaks Farm in Indiana when his clothing was caught in manure handling equipment, strangling him to death. His death left behind a widow, three children, and a token $10,500 Occupational Safety and Health Administration fine. Austin Frerick’s profile of the McCloskey family, which owns Fair Oaks Farm, in his new book, Barons, reveals more of the underbelly of this “Dairy Disneyland,” including their role as digester cheerleaders. Another Fair Oaks tourist and digester advocate he mentions is Tom Vilsack.
Our current “get big or get out” farm policy does not have much time or interest in agroecological approaches for healthier food that also ensure food sovereignty. Instead, corporate agribusiness is allowed to manipulate commodity markets—driving out what little competition exists from smaller farmers and local processors. The political allies of the food giants then ensure that taxpayers help underwrite the largest industrialized operations left standing, since they are the easiest to vertically integrate into the dominant oligopoly structure. Is it any surprise to see agribusiness lobbyists and their academic apologists now touting manure digesters as “climate smart” just in time for Earth Day and pushing for pollution trading offset schemes within the 2024 Farm Bill?
Thankfully, there are better responses to the climate crisis that also treat rural people and our land, air, and water with respect. Existing federal initiatives such as the Conservation Reserve Program could be expanded to better direct payments to farmers who are already doing so much responsible land and climate stewardship—without carbon offset peddlers skimming 25% off the top. The EQIP and REAP programs need to be overhauled to severely limit or even eliminate CAFO lagoon and digester grants and earmark more towards smaller grass-based diversified operations instead. This is the gist behind the EQIP Reform Act, introduced by Sen. Cory Booker (D-N.J.) and Rep. Mike Lee (R-Utah) last year as part of the Farm Bill debate.
More generally, factory farms must be treated as a pollution point source, subject to all the monitoring, regulation, and liability required for any other industrial operation. Why should CAFOs evade the common sense oversight that other businesses respect? Defending local control also remains critical. Last year grassroots activists in St. Croix County were able to push back and shut down a massive digester proposal near New Richmond, Wisconsin, being aggressively promoted by Nature Energy, a Shell Oil subsidiary. Thousands of folks recently responded to a statewide action alert successfully demanding that Wisconsin Gov. Tony Evers veto CAFO industry-crafted preemption legislation that would have hamstrung the right to pass ordinances that would restrict their manure digesters and other rural mal-development projects. Democratic direct action can get the goods!
NASA space probes have revealed that there is a massive ocean of liquid methane on Titan, one of the moons circling Saturn. There is also not any life that we know of on Titan… Intentional factory farm production and subsequent “climate smart” combustion of methane is not only oxymoronic, but will undermine the future prospect of life here on Earth. Farmers can feed the world and the cool the planet—without the false promise of manure digesters.
"Carbon offset trading is reckless and irresponsible," said one campaigner.
A coalition of climate groups had a message for world leaders on Monday, Finance Day at the United Nations Climate Change Conference: "Stop carbon offsetting now!"
The conference, COP28, is hosted in Dubai by the United Arab Emirates—which, as the coalition highlighted in a joint statement, is set to "hold numerous promotional thematic events," despite two decades of negative impacts from carbon offset schemes.
"Carbon offset trading is reckless and irresponsible," declared Jutta Kill of the World Rainforest Movement—part of the coalition that includes ETC Group, Focus on the Global South, GRAIN, Indigenous Environmental Network, Just Transition Alliance, and the Oakland Institute.
"Throughout 2023, academic research, media, and civil society investigations have exposed how these projects routinely generate phantom offsets and result in land grabbing and human and Indigenous rights violations," the organizations noted, pointing to "the forced relocation of Ogiek Peoples in Kenya's Mau Forest" and "extensive sexual abuse at a Kenyan offset project."
"Over the past months, Kenya, along with Liberia, Tanzania, Zambia, and Zimbabwe, have signed deals with Dubai-based Blue Carbon
covering a total of over 24 million hectares of community lands," the coalition continued. "Carbon offset project developers, standards bodies, auditors, and credit providers have pocketed millions from churning out carbon credits that have failed to reduce emissions and exacerbated the climate crisis."
One "damning" probe from September found that nearly 80% of the top carbon offset schemes be deemed "likely junk or worthless." Another study from that month, focused on Reducing Emissions from Deforestation and Forest Degradation (REDD+) projects, similarly concluded that reductions were dramatically exaggerated.
"At COP28, world leaders and climate negotiators need to recognize once and for all that carbon markets are a failed source of climate finance. They are volatile and unstable, marked by fraud, incapable of reducing emissions, and actually harm communities," Oakland Institute executive director Anuradha Mittal said Monday.
The coalition pointed out that in addition to impacts such as relocations and abuse, "these projects, many of which are repackaged as so-called 'nature-based solutions' or 'natural climate solutions' or, when done at coastal and marine areas, as 'blue carbon,' have also drawn peasant and Indigenous communities into costly and complicated legal battles in their effort to affirm their rights and reclaim community territories and in their fights to resist the projects."
The Kichwa communities in the Peruvian Amazon, Dayak communities in Indonesia, and Aka Indigenous communities and Bantu farmers in the Republic of Congo's Bateke Plateau are among those negatively affected by carbon offsetting schemes.
"Over 20 years of history with offsets have resulted in the rights of Indigenous peoples being violated, increased land grabbing, and disproportionate impacts on Indigenous environmental defenders," stressed Indigenous Environmental Network executive director Tom Goldtooth. "The false solutions will become a crime against humanity and Mother Earth."
GRAIN's Devlin Kuyek said that "they prop up a system that has enabled corporate polluters and rich countries to delay action and profit from the crisis. Whether unregulated or with a U.N. seal of approval, carbon offsetting in all its shapes and forms, including REDD or so-called 'nature-based solutions' and 'blue carbon,' is a fraud that must be immediately scrapped."
The coalition asserted that rather than carbon offsetting, "what is urgently needed is renewed focus on keeping fossil fuels in the ground and commitments to real climate action based on equity and justice."
As Friends of the Earth International's Kirtana Chandrasekaran put it: "What we need are real emissions reductions and real climate finance. Anything less is failure."
The coalition's demands contrasted sharply with Sunday comments from Sultan Ahmed Al Jaber, COP28 president and Abu Dhabi National Oil Company CEO, who claimed there is "no science" behind the push to rapidly phase out planet-heating fossil fuels—which one leading expert said "dismisses decades of work" by global scientists.
Going into COP28, a U.N. analysis warned that countries' currently implemented policies put the world on track for 3°C of warming by 2100, or double the Paris agreement's 1.5°C target. Already, the planet has warmed about 1.1°C relative to preindustrial levels.
Even though the international community is way off track in terms of meeting its climate goals, Bronwen Tucker, global public finance lead at Oil Change International, pointed out Monday that "on Finance Day at COP28, instead of rich country governments committing to pay their fair share for a fossil fuel phaseout, they tried to shirk their responsibilities."
The biggest historical contributor to planet-heating pollution, the United States, and foundation partners on Sunday announced the Energy Transition Alliance. Rachel Cleetus, the policy director and a lead economist for the Union of Concerned Scientists' Climate and Energy Program, said the offset initiative "is still very much a work-in-progress, and the details shared thus far raise a fair degree of skepticism about its ability to meaningfully contribute to addressing the climate crisis."
"Richer nations and large corporations should have no claim over monetizing the scarce remaining carbon budget and yet this program is premised on that unjust idea," Cleetus added. "At COP28, the primary focus should be on securing an agreement among nations for a fast, fair fossil fuel phaseout and ramping up public finance."