What is this?
This is a model that calculates the nitrous oxide emissions avoided on your farm when you reduce your nitrogen fertiliser. We can help you sell those avoided emissions on the NZCIM marketplace.
How does this model calculate emission reductions from nitrogen fertiliser applications?
Our scientific model uses data that a farmer reports about their nitrogen fertiliser reductions, plus feed and irrigation management, to calculate the nitrous oxide emissions avoided on a dairy farm’s milking platform.
Who has built the scientific model?
This model was built by Professor Troy Baisden who is a Principal Investigator at Te Pūnaha Matatini. Troy specialises in understanding the flow of nutrients, water and carbon through land-based ecosystems and resulting impacts in freshwater. He holds a PhD from the Department of Environmental Science Policy and Management at the University of California, Berkeley.
What data will I have to report?
The model needs farmers to report the following data monthly in order to calculate the total emission reductions avoided:
- Volume of all nitrogen-containing fertiliser products applied to milking platform
- Volume of feed fed
- Volume of feed made on milking platform
- Irrigation volumes
- Peak cows milked
Who owns the data?
You always own the raw data that you report into the system. Your raw data is transformed through the model to calculate the emissions reductions from your fertiliser changes. Buyers own a copy of the report, not the data that underpins it. The buyer has limited rights to grant a third party to access the raw data in order to verify that it is correct. This is particularly important to buyers where the data is
going to be used for a carbon credit.
Who will buy my emission reductions?
At the moment we are speaking to buyers both locally and internationally looking to purchase tonnes of nitrous oxide emission reductions. These are mostly corporate buyers seeking good quality ways to offset their carbon emissions by supporting Kiwi farmers. When you list your emissions reductions for sale on the market, you will have visibility to all potential buyers and can refuse a sale.
At what price should I sell my emission reductions?
The NZCIM is an open marketplace, so you are able to list your emission reduction at any price. In light of the current price of New Zealand emissions units (NZU), we suggest to buyers a starting bid of no less than $50 p/tonne of CO2e. Toha cannot guarantee a sale or sale price. The final sale price is negotiated between sellers and buyers. All data is supported by evidence that confirms the data to be correct.
Each subsequent year of data reported will calculate your reductions from your initial baseline year, and the buyer will be invoiced for the actual emissions avoided annually.
What am I selling?
Buyers are purchasing the tonnes of nitrous oxide emissions avoided on your dairy platform and can use them as carbon offsets. Nitrous oxide emissions are a long-lived greenhouse gas. These are calculated as tonnes of carbon dioxide equivalent (CO2e) avoided.
Buyers receive a report that visually demonstrates the nitrogen reductions and subsequent emissions reductions as well as supporting information about your farm to give them confidence in the truthfulness of the reductions. You can see an example report before you decide to sell.
Over what timeframe can I sell them?
Your emission reductions will be calculated on an annual basis, with each year’s emissions listed for sale separately. You can offer to sell your reductions for up to 5 years.
Where do I sell them?
Toha is creating a marketplace for farmers to earn revenue from their contributions towards restoring the environment. This digital marketplace is called the NZ Climate Innovation market (NZCIM).
How much does it cost to sell on the NZCIM?
Toha charges a service fee to fund the development and maintenance of the marketplace. There is an additional royalty fee paid to Troy Baisden for the development and use of the model that calculates the emission reductions.
How does this fit in with He Waka Eke Noa?
We are keeping a close eye on the design of HWEN. As the HWEN rules have not yet been set, we acknowledge that there is uncertainty about how Toha’s products will interact with this new levy. We believe the most likely scenario is that the HWEN levy will be calculated on actual emissions. If that scenario is correct, then by reducing their nitrogen fertiliser application in advance of HWEN coming into play, farmers are likely to reduce their future HWEN levies. We see this scenario as a win-win for farmers.
What happens if I need to change my fertiliser reduction plan?
Farmers need flexibility. You pre sell an estimated reduction, but are only paid for the actual emissions reductions that you deliver.
Each year that you report your data after your initial baseline year, the model will calculate your actual tonnes of nitrous oxide emissions reduced and our system will calculate the final sale price accordingly.
What happens if I withdraw after agreeing to a sale?
If you decide to cancel a sale, you will be required to pay the Toha marketplace fees and the model developer royalty fees that applied to the sale. You will not be able to re-list the same emission reductions for sale in the NZCIM.
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