The European Commission aims to develop carbon storage into a new agricultural business model. The storage of CO2 in farmland will become part of the tightened climate policy announced this week in Brussels by Vice President Frans Timmermans.
The so-called carbon farming will become a new business model where trading and rights in carbon storage can be bought and sold. Earlier this year, new U.S. President Joe Biden announced that carbon storage will be the main component of his new agricultural policy.
At the presentation, Biden said that American agriculture should be the first in the world to reduce greenhouse gas emissions to net zero. By paying farmers to capture and retain carbon in the soil, a new revenue model is created, it is said.
According to Environment Commissioner Timmermans, Europe must equip itself far more concretely against the inevitable consequences of climate change such as heatwaves, storms, and droughts. Extreme weather already causes billions of euros in damage: according to Timmermans, €12 billion per year.
If global warming is not stopped below two degrees - as is still currently planned - droughts would occur twice as often and the drought damage would rise to €40 billion.
Two weeks ago, Rabobank announced it is establishing a new division, the Carbon Bank. Through this new business unit, clients can purchase or sell CO2 rights. Economist Barbara Baarsma will lead this division.
At the Carbon Bank, the currency is not money but carbon. In the project, farmers and companies meet to match supply and demand for CO2 storage.