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A Scoping Study for Potential Community-Based Carbon Offsetting Schemes in the Falkland Islands

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A Scoping Study for Potential Community-Based Carbon Offsetting Schemes in the Falkland Islands A SCOPING STUDY FOR POTENTIAL COMMUNITY-BASED CARBON OFFSETTING SCHEMES IN THE FALKLAND ISLANDS Chris Evans, Jonathan Ritson, Jim McAdam, Stefanie Carter, Andrew Stanworth and Katherine Ross Date: revised Sept 2020 Undertaken by Funded by Recommended citation: Evans, C. et al (2020). A scoping study for potential community‐based carbon offsetting schemes in the Falkland Islands. Report to Falklands Conservation, Stanley. Author affiliations: Chris Evans (UK Centre for Ecology and Hydrology) Jonathan Ritson (University of Manchester), Jim McAdam (Queen’s University Belfast and Falkland Islands Trust), Stefanie Carter (South Atlantic Environmental Research Institute), Andrew Stanworth (Falklands Conservation) and Katherine Ross (Falklands Conservation). Falklands Conservation: Jubilee Villas, 41 Ross Road, Stanley, Falkland Islands Corresponding author: [email protected] www.falklandsconservation.com Charity Information: Falklands Conservation: Registered Charity No. 1073859. A company limited by guarantee in England & Wales No. 3661322 Registered Office: 2nd Floor, Regis House, 45 King William Street, London, EC4R 9AN Telephone: +44 (0) 1767 693710, [email protected] Registered as an Overseas Company in the Falkland Islands ii Contents A SCOPING STUDY FOR POTENTIAL COMMUNITY‐BASED CARBON OFFSETTING SCHEMES IN THE FALKLAND ISLANDS .................................................................................................................................. i Summary ................................................................................................................................................. 1 Introduction ............................................................................................................................................ 3 Peatlands and the carbon cycle .......................................................................................................... 3 The extent and characteristics of Falkland peatlands ........................................................................ 4 The history and current nature of land‐use impacts on Falkland peatlands ...................................... 5 Overview of international carbon markets and offsetting schemes .................................................. 9 Quantifying carbon offset potential ..................................................................................................... 10 Current state of knowledge on greenhouse gas emissions and removals by Falkland peatlands ... 10 Opportunities and mechanisms for Falkland peat restoration ......................................................... 18 Tussac restoration ......................................................................................................................... 18 Grazing land management ............................................................................................................ 19 Erosion control .............................................................................................................................. 21 Re‐wetting ..................................................................................................................................... 22 Other management options ......................................................................................................... 23 Quantifying total emissions reduction and offset potential ............................................................. 24 Offset potential from peat emissions reductions and removals .................................................. 24 Offset potential from increased above‐ground biomass .............................................................. 27 Potential scale of a Falkland offset scheme .................................................................................. 29 Data gaps and research needs to support an offsetting scheme ..................................................... 29 Carbon markets and carbon offsetting ................................................................................................. 31 International carbon markets ........................................................................................................... 31 Potential markets and carbon prices ................................................................................................ 32 Market versus government schemes ................................................................................................ 33 Carbon accreditation standards and local offsetting schemes ......................................................... 33 Offsets: reductions versus removals ................................................................................................. 34 Additionality, permanence and leakage ........................................................................................... 34 Monitoring and verification .............................................................................................................. 35 Potential role for a project developer .............................................................................................. 35 Towards a Falkland carbon offsetting scheme ..................................................................................... 36 Outline model for a Falkland Carbon Code ....................................................................................... 36 Challenges and potential solutions ................................................................................................... 36 Co‐benefits and trade‐offs ................................................................................................................ 37 Scheme governance .......................................................................................................................... 38 iii Future requirements to support scheme implementation ............................................................... 39 References ............................................................................................................................................ 40 Appendix 1: Examples of the habitats, land‐use and restoration activities described in the report ... 44 iv Summary Relative to their land area, the Falkland Islands hold one of the largest stores of peatland carbon in the world. Until the mid 18th century, these peatlands developed with little or no human disturbance, and in the absence of herbivorous mammals. The subsequent settlement of the Islands and establishment of extensive livestock grazing, including historic over‐grazing and burning, have led to large‐scale ecological changes. These have included the decline of sensitive native species, notably coastal tussac grass, and peat erosion. Smaller areas have been affected by drainage, peat‐cutting and cultivation. As in many other peatland regions of the world, this combination of pressures has likely reduced the capacity of Falkland peats to sequester carbon dioxide (CO2) from the atmosphere through peat formation, and may have led to some areas becoming net sources of CO2 emissions. Changes in land‐management and restoration therefore offer the potential to deliver substantial climate change mitigation, both by reducing greenhouse gas (GHG) emission rates in degraded areas (‘GHG reductions’), and by turning them back into actively carbon‐sequestering systems (‘GHG removals’) through restored peat formation and the expansion of above‐ground plant biomass. In this report, we consider the potential for a future Falkland Island carbon offsetting scheme. Such as scheme would provide a mechanism by which businesses, organisations and individuals could invest in land‐management and restoration schemes that would deliver GHG reductions or removals, delivering financial support to farmers and others to adopt sustainable land‐management practices, undertake restoration and increase the extent of ecologically valuable habitats. A critical requirement for any carbon offsetting scheme is a robust scientific evidence base, enabling the GHG emission savings associated with proposed intervention measures to be quantified and demonstrated. In this report we review the available evidence for the Falklands, as well as relevant data from comparable peatlands elsewhere, to estimate current rates of GHG emission from Falkland peatlands, together with the maximum rate of GHG removal that could be attained if all peatlands were restored to their natural condition. Given the scarcity of direct measurements from Falkland peatlands, and their unique characteristics, these estimates are highly uncertain, and data taken from other regions such as the UK may not be directly applicable. New data would therefore need to be collected in the Falklands to support scheme development, should it occur. Whilst highly uncertain, our initial assessment suggests that the maximum carbon offset potential from peatland restoration in the Falklands could be high, in the region of a million tonnes of CO2 equivalent per year. Based on the UK government’s shadow price for carbon, this could generate revenue of around £47 million per year for carbon offsets. The market for carbon offsetting is expected to grow rapidly due to the International Civil Aviation Organisation’s agreement to invest between £4 ‐18 billion per year to offset growth in international aviation emissions. Whilst sales into such markets may need to be balanced against the Falkland Islands’ own national targets in the future to avoid double counting,
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