An ag economist is calling the Growing Climate Solutions Act a set of ‘rules for the road’ when it comes to carbon markets.
Ohio State’s Carl Zulauf tells Brownfield the act would create a third-party verification system for carbon trading, create an advisory committee over carbon markets and have a report sent to Congress.
“These are well-known attributes of markets that function well,” he said. “It doesn’t mean the market will function well, but it does mean that these have to be present for the market to do that.”
Zulauf said the bill is a first step to creating a transparent carbon market by creating a set of standards.
University of Illinois economics researcher Krista Swanson said keeping an eye on pending legislation like the Growing Climate Solutions Act will help farmers better find a place within the carbon market.
“Think about your own farm’s sustainability goals over the next 10 to 20 years and if you’re going to get involved in the carbon markets now, think about finding a program that fits in with what your own farm goals are,” she said.
Swanson said the development of a USDA carbon bank program will also shape the market.