The Russian war on Ukraine has shorted the EU energy market and forced resumed use of coal. This in turn has driven up the need for more carbon allowances as the cost of carbon has risen too high for some industries. The EU has a mandatory cap and trade system, but it still informs U.S. policymakers as they work on a voluntary-based carbon offset market.  Demand from major corporations for offsets is increasing and U.S. farmers are scrambling to benefit from a potential new income source. While agriculture contributes 10 percent of all emissions, they calculate that net-emissions in agriculture after deducting carbon sinking is -2 percent. The challenge is establishing a system of certification, quantification and verification with un...

TAGS – Macroeconomics, North America