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What role will the government play in carbon markets?

Many wonder what role the USDA will play in carbon markets as the Biden administration begins to roll out its climate policies

Laura Wood Peterson, Senior Director of Government Affairs with indigo Ag says they don’t believe USDA wants to become a carbon market, but the agency has expressed interested in supporting voluntary markets.

“What that support looks like is what everyone is trying to get their heads around, but what I do NOT expect it to mean is that USDA becomes the market.”

A big question is if there will be any price regulation.

“It’s a really important question. If you set a price too high, does that mean government becomes the market? If you set a price too low, is it enough to move the needle for farmers?”

She says congress and USDA will need to be thinking about additional revenue and policy based on the quality of offsets.

“Are we going to see some type of infrastructure program? Are we going to see some appropriations language? Are we going to see something before the 2023 Farm Bill that can increase the base line for these programs?”

Peterson says based on prior experience, she believes Secretary Vilsack and his team are well positioned to lead this effort.   

She spoke during a recent carbon markets webinar hosted by Indigo Ag.