Today if you have certified your last five years of soil carbon sequestration via NORI and the average was one mtSOC/ac/.yr this yields 3.67 mtCO2e/ac/yr. At $100/mtCO2e the gross farm gate value would be $367/ac for its carbon credits.
I would encourage those that have implemented no-till in the last five years to seriously look into the process of getting your field's SOC inventory baselined in 2021.
The White House is expected to release a temporary estimate for the dollar value of carbon dioxide on Friday.
And it promises to be a lot higher; anywhere from $40 to as much as $120?
President Biden pledged to introduce interim social cost estimates for carbon, methane and nitrous oxides as part of his sweeping day one executive order on Jan. 20. They will replace estimates developed by the Trump administration that critics said were artificially low.
The estimate, adjusted for inflation, would give agencies something to use as the White House establishes an updated carbon value.
That would raise the social cost of carbon for 2020 from the Trump-era figure of between $1 and $7 per ton of CO2 to about $53 per ton.
Some experts have urged the Biden administration to consider making changes even to the interim estimates it releases this week to show substantially higher social costs. Such a move would justify more costly and robust regulations at EPA and other agencies.
Economist Michael Greenstone, who co-chaired the interagency working group that formulated the carbon figures under Obama, said in a report last month that the 3% central discount rate used in the process is no longer appropriate. The discount rate can radically alter the value of CO2 by raising or lowering the estimated future benefits of reducing emissions today.
Greenstone recommended that a 2% rate should be used with this week's interim figure. That would raise the social cost of carbon to $125 a ton — substantially changing the balance of costs and benefits in many federal rules.
Nobel laureate Joseph Stiglitz and Lord Nicholas Stern published a paper Monday advising the Biden team to embrace a carbon value of $100 when it releases its final figures next year.
"If the working group settles on a low number, many emission-curbing projects and regulations won't go ahead, because their price tags will exceed the estimated climate benefits," the two economists wrote in a commentary published by Project Syndicate. "So, it is vital to get the number right — and by right, we mean higher than it has been in the past."