Tag Archives: greenhouse gases and forests

A Breach Too Far: 413 PPM

The abundance of heat-trapping greenhouse gases in the atmosphere once again reached a new record in 2021, with the annual rate of increase above the 2011-2020 average. That trend has continued in 2021, according to the World Meteorological Organization (WMO) Greenhouse Gas Bulletin.

Concentration of carbon dioxide (CO2), the most important greenhouse gas, reached 413.2 parts per million in 2020 and is 149% of the pre-industrial level. Methane (CH4) is 262% and nitrous oxide (N2O)  is 123% of the levels in 1750 when human activities started disrupting Earth’s natural equilibrium.

Roughly half of the CO2 emitted by human activities today remains in the atmosphere. The other half is taken up by oceans and land ecosystems. The Bulletin flagged concern that the ability of land ecosystems and oceans to act as “sinks” may become less effective in future, thus reducing their ability to absorb carbon dioxide and act as a buffer against larger temperature increase…Such changes are already happening, for example, transition of the part of Amazonia from a carbon sink to a carbon source

The Bulletin shows that from 1990 to 2020, radiative forcing – the warming effect on our climate – by long-lived greenhouse gases increased by 47%, with CO2 accounting for about 80% of this increase…The amount of CO2 in the atmosphere breached the milestone of 400 parts per million in 2015. And just five years later, it exceeded 413 ppm. 

“Carbon dioxide remains in the atmosphere for centuries and in the ocean for even longer. The last time the Earth experienced a comparable concentration of CO2 was 3-5 million years ago, when the temperature was 2-3°C warmer and sea level was 10-20 meters higher than now. But there weren’t 7.8 billion people then,” said Prof. Taalas.

Excerpt from Greenhouse Gas Bulletin: Another Year Another Record, WMO, Oct. 25, 2021

Buy Carbon Stored in Trees and Leave it There

For much of human history, the way to make money from a tree was to chop it down. Now, with companies rushing to offset their carbon emissions, there is value in leaving them standing. The good news for trees is that the going rate for intact forests has become competitive with what mills pay for logs in corners of Alaska and Appalachia, the Adirondacks and up toward Acadia. That is spurring landowners to make century-long conservation deals with fossil-fuel companies, which help the latter comply with regulatory demands to reduce their carbon emissions.

For now, California is the only U.S. state with a so-called cap-and-trade system that aims to reduce greenhouse gasses by making it more expensive over time for firms operating in the state to pollute. Preserving trees is rewarded with carbon-offset credits, a climate-change currency that companies can purchase and apply toward a tiny portion of their tab. But lately, big energy companies, betting that the idea will spread, are looking to preserve vast tracts of forest beyond what they need for California, as part of a burgeoning, speculative market in so-called voluntary offsets.

One of the most enthusiastic, BP PLC, has already bought more than 40 million California offset credits since 2016 at a cost of hundreds of millions of dollars. In 2019, the energy giant invested $5 million in Pennsylvania’s Finite Carbon, a pioneer in the business of helping landowners create and sell credits. The investment is aimed at helping Finite hire more foresters, begin using satellites to measure biomass and drum up more credits for use in the voluntary market.  BP has asked Finite to produce voluntary credits ASAP so they can be available for its own carbon ledger and to trade among other companies eager to improve their emissions math. As part of its shift into non-fossil-fuel markets, BP expects to trade offset credits the way it presently does oil and gas.“The investment is to grow a new market,” said Nacho Gimenez, a managing director at the oil company’s venture-capital arm. “BP wants to live in this space.”

Skeptics contend the practice does little to reduce greenhouse gases: that the trees are already sequestering carbon and shouldn’t be counted to let companies off the hook for emissions. They argue that a lot of forest protected by offsets wasn’t at high risk of being clear-cut, because doing so isn’t the usual business of its owners, like land trusts, or because the timber was remote or otherwise not particularly valuable.

If other governments join California and institute cap-and-trade markets, voluntary offsets could shoot up in value. It could be like holding hot tech shares ahead of an overbought IPO. Like unlisted stock, voluntary credits trade infrequently and in a wide price range, lately averaging about $6 a ton, Mr. Carney said. California credits changed hands at an average of $14.15 in 2019 and were up to $15 before the coronavirus lockdown drove them lower. They have lately traded for about $13.

These days, voluntary offsets are mostly good for meeting companies’ self-set carbon-reduction goals. BP is targeting carbon neutrality by 2050. Between operations and the burning of its oil-and-gas output by motorists and power plants, the British company says it is annually responsible for 415 million metric tons of carbon emissions.

Excerpts from Emissions Rules Turn Saving Trees into Big Business, WSJ, Aug. 24, 2020