Agriculture contributes significantly to global carbon emissions. While natural processes like soil carbon sequestration offer some mitigation, there is a critical demand for more innovative and effective solutions. In a recent interview Hamish Macdonald, Managing Director of Carbon Asset Solutions (CAS) — one of our Bronze Sponsors for the London Climate Technology Show — discussed with Muhammad Younis how CAS is at the forefront of transforming agriculture into a climate-positive force through cutting-edge carbon offsetting strategies.
#CTS: How does the agricultural sector contribute to the global concentration of carbon emissions? In your view, can the sector achieve a balance through natural processes, or is there an urgent need for innovative external interventions?
Hamish Macdonald: The agricultural sector contributes significantly to global carbon emissions through deforestation, methane from livestock, and soil degradation. The farming industry is said to contribute around 20% to the CO2 going into the atmosphere from their current practices.
While natural processes like carbon sequestration in soil can help balance emissions, these alone are insufficient. Innovative external interventions, such as improved farming practices, carbon credits, and technological advancements, are urgently needed to reduce the sector's carbon footprint and achieve sustainability. Carbon credits can be a financial reward for farmers to adopt regenerative farming practices to reduce CO2 contribution.
#CTS: Can you elaborate on how Carbon Asset Solutions is transforming agriculture into a climate-positive force? Could you dive deeper into the underlying technology—what sets it apart from other carbon capture and offset solutions in the market? How scalable is your approach for widespread adoption?
Hamish Macdonald: Carbon Asset Solutions (CAS) is transforming agriculture into a climate-positive force by leveraging advanced soil carbon measurement technologies to quantify and increase the carbon stored in agricultural soils. Through no-till farming, cover cropping, and many other regenerative agriculture practices, CAS rewards farmers who adopt methods that enhance soil health and sequester carbon. This not only helps mitigate climate change but also improves agricultural productivity and resilience. Due to the high level of certainty, the farmers can see an increase in income for regenerative farming practices.
CAS uses a sophisticated digital Measurement, Reporting, and Verification (MRV) platform. The measurement step uses the Mobile Inelastic Neutron Scattering (MINS) unit, to accurately measure soil carbon levels at an unmatched, atomic level. The volume of soil measured compared to point sampling practices is millions of times greater thereby providing a more accurate baseline for improvement. By providing precise data, CAS helps farmers generate high-integrity carbon credits, which can be sold in voluntary carbon markets. This approach incentivises farmers to engage in sustainable practices that sequester carbon, effectively turning agriculture into a solution for climate change rather than a contributor to it. Third-party verification is carried out by SGS who directly access the CAS Microsoft Azure ledger.
Key Differentiators:
- Precision and Accuracy: Unlike traditional soil sampling methods that rely on modelling and broad estimates, CAS’s MINS technology provides real-time, highly accurate measurements of soil carbon levels. This precision ensures that the carbon credits generated are based on verified, measurable increases in soil carbon, which is critical for maintaining the integrity and value of these credits in the market. Near Infrared Spectroscopy (NIR) is considered less accurate and precise compared to direct measurement technologies like MINS. Its accuracy depends on the quality of the calibration models, which must be tailored to specific soil types and conditions. Variations in soil moisture, texture, and other properties can affect NIR readings, leading to less precise results. NIR is often used as a cost-effective and rapid assessment tool, but its reliance on indirect measurements through calibration models can introduce significant uncertainties.
- Data Security and Transparency: CAS uses blockchain technology to secure and verify the data collected through its MRV platform. This not only ensures that the data is immutable and tamper-proof but also adds a layer of transparency that is increasingly demanded by buyers of carbon credits. This level of security and transparency is uncommon in the carbon offset market, making CAS’s credits more reliable and attractive.
- High Integrity Carbon Credits: The combination of MINS technology and blockchain verification means that CAS can offer carbon credits with a 95% level of certainty—well above the industry standard. This high level of certainty significantly reduces the risk of overestimating carbon sequestration and enhances buyer confidence in the credits.
CAS’s approach is designed to be highly scalable for widespread adoption.
- Technology Flexibility: The MINS technology is versatile and can be applied across various types of agricultural lands, from small farms to large-scale agricultural enterprises. This flexibility allows CAS to cater to a wide range of farming operations, making it easier to scale the technology across different regions and farming practices.
- Digital Infrastructure: The fully digital MRV platform streamlines the data collection, verification, and reporting processes, making it easier for farmers to participate in carbon markets. This digital infrastructure reduces the barriers to entry for farmers and enables CAS to rapidly onboard new participants.
- Financial Incentives: Some CAS projects are able to recieve upfront payments to farmers for adopting carbon-sequestering practices, which incentivizes participation and accelerates the adoption of the technology. This financial model not only supports farmers in making the transition but also encourages widespread adoption, contributing to the scalability of the approach.
- Global Applicability: Given the growing global demand for high-integrity carbon credits, CAS’s approach is positioned to scale internationally. The company’s technology and financial model are adaptable to different agricultural contexts, allowing for expansion beyond the initial markets.
By combining cutting-edge technology, robust data security, and a scalable financial model, CAS is well-equipped to lead the transformation of agriculture into a climate-positive force on a global scale.
#CTS: Could you share insights into some of the pivotal partnerships you’ve forged in the industry? How have these collaborations specifically contributed to reducing agriculture's carbon footprint?
Hamish Macdonald: Carbon Asset Solutions (CAS) has strategically partnered with industry leaders like Microsoft Azure and SGS to significantly reduce agriculture's carbon footprint. These collaborations have provided the technological and verification frameworks necessary to enhance the precision, scalability, and credibility of CAS's carbon sequestration initiatives.
i) Microsoft Azure: Enhancing Data Precision and Scalability
Microsoft Azure provides the cloud computing infrastructure that underpins CAS’s data management and processing capabilities. This partnership has been instrumental in enabling the collection, storage, and analysis of vast amounts of soil carbon data gathered by CAS’s Mobile Inelastic Neutron Scattering (MINS) units.
- Data Accuracy and Real-Time Processing: By leveraging Azure's advanced data analytics and machine learning capabilities, CAS can process and analyze soil carbon measurements with unprecedented precision. This ensures that the data driving carbon credits is accurate, reducing the risk of overestimation and enhancing the integrity of the credits issued.
- Scalability: Azure’s cloud platform allows CAS to scale its operations globally, handling the increasing volume of data as more farmers and agricultural operations are integrated into the CAS system. This scalability is crucial for expanding the reach of CAS’s carbon reduction efforts, making it feasible to monitor and verify carbon sequestration activities across large agricultural landscapes.
ii) SGS: Ensuring Verification and Credibility
SGS, a global leader in inspection, verification, testing, and certification, plays a critical role in validating the carbon credits generated by CAS.
- Third-Party Verification: SGS provides independent verification of the carbon sequestration data generated by CAS, ensuring that the carbon credits are based on actual, measurable increases in soil carbon. This third-party verification is essential for maintaining the credibility and marketability of CAS’s carbon credits, making them more attractive to buyers who are increasingly demanding high-integrity offsets.
- Compliance with International Standards: The partnership with SGS ensures that CAS’s carbon credits meet international standards, such as those outlined in the ISO 14064 series for greenhouse gas accounting and verification. This compliance enhances the global acceptability of CAS’s credits, further contributing to reducing agriculture’s carbon footprint by incentivizing more farmers to adopt carbon-sequestering practices.
iii) Other Partnerships and Contributions
Beyond Microsoft Azure and SGS, CAS collaborates with various stakeholders, including agricultural organisations and technology providers, to promote sustainable farming practices.
- Agricultural Partnerships: CAS works closely with farmers and agricultural organisations to implement regenerative agriculture practices, such as no-till farming and cover cropping. These practices increase soil carbon levels, reduce reliance on chemical inputs, and improve overall soil health, leading to a lower carbon footprint for agricultural activities.
- Educational Initiatives: CAS also engages in educational efforts to raise awareness among farmers about the benefits of carbon sequestration and the financial incentives available through carbon credits. By empowering farmers with knowledge and resources, CAS helps accelerate the adoption of practices that reduce agriculture’s carbon footprint.
#CTS: The London Climate Technology Show is a prominent forum for discussing and displaying climate-tech solutions. In your opinion, how critical are events like these for driving real-world impact?
Hamish Macdonald: Events like the London Climate Technology Show play a critical role in advancing climate action and driving real-world impact by providing a platform for showcasing cutting-edge climate-tech solutions, facilitating collaboration, and influencing policy and investment decisions.
- Showcasing Innovations and Solutions: The London Climate Technology Show brings together innovators, entrepreneurs, and researchers who are developing the technologies needed to combat climate change. These events serve as a launchpad for new ideas and solutions that can be scaled globally. In a time when the goal of limiting global warming to 1.5°C is reportedly slipping out of reach, the urgency for innovative and scalable solutions is higher than ever. Events like these are essential for accelerating the deployment of technologies that can help reduce emissions, enhance energy efficiency, and support sustainable practices across various sectors.
- Facilitating Collaboration and Knowledge Sharing: The show acts as a hub for collaboration between diverse stakeholders, including governments, private sector leaders, academics, and non-governmental organisations. By bringing together these groups, the event fosters the exchange of knowledge, best practices, and strategies for tackling climate change. This collaboration is crucial, especially as recent reports indicate that global efforts are falling short of the 1.5°C target, underscoring the need for coordinated and accelerated action.
- Influencing Policy and Investment: Events like the London Climate Technology Show have the potential to influence policy and attract investment in climate-tech solutions. Policymakers and investors attending these events gain insights into the latest advancements and emerging trends, which can inform regulatory frameworks and investment strategies. Given the recent news that the 1.5°C global warming target may be missed, the role of policy and finance in scaling up effective climate solutions has never been more critical. These events help bridge the gap between innovation and implementation by connecting technology developers with the resources needed to bring their solutions to market.
- Raising Awareness and Building Momentum: Such events also play a crucial role in raising awareness among the broader public and building momentum for climate action. They highlight the severity of the climate crisis and the need for immediate and sustained efforts to mitigate its impacts. As the window for keeping global warming within 1.5°C narrows, public awareness and pressure on governments and corporations to act become increasingly important. Events like the London Climate Technology Show amplify the urgency of the situation and inspire action across all levels of society.