environmental markets

Environmental trading markets are springing up across the nation with goals of facilitating the buying and selling of ecosystem services and helping more private landowners get conservation on the ground.

USDA Secretary Tom Vilsack and EPA Administrator Gina McCarthy joined Virginia Governor Terry McAuliffe in December 2014 to announce the state’s first trade under its nutrient trading program for stormwater.

By keeping their grasslands intact, two Colorado ranches are reducing greenhouse gas emissions and protecting vital wildlife habitat, all while earning additional revenue.

It may seem too good to be true, but it is thanks to a unique partnership spearheaded by the Climate Action Reserve, one of North America’s leading carbon offset project registries.

With the help of a Conservation Innovation Grant (CIG) from USDA’s Natural Resources Conservation Service (NRCS), the Climate Action Reserve listed Raven’s Nest and Heartland Ranch, both owned by the Southern Plains Land Trust (SPLT), as the first two grassland offset projects developed and executed under a new Grassland Project Protocol.

“The Conservation Innovation Grant program has an impressive track record of fostering innovative conservation tools and strategies,” said Agriculture Secretary Tom Vilsack as he announced $20 million in new funding for the program. “Successes in the program can translate into new opportunities for historically underserved landowners, help resolve pressing water conservation challenges and leverage new investments in conservation partnerships with farmers, ranchers and other stakeholders.”

Conservation Innovation Grants (CIG) fosters innovation in conservation tools and strategies to improve things like on-farm energy and fertilizer use as well as market-based strategies to improve water quality or mitigate climate change. Last year CIG began supporting the burgeoning field of conservation finance and impact investing to attract more private dollars to science-based solutions to benefit both producers and the environment.

“Who better to share the benefits of intensive rotational grazing than farmers who are actually doing it on their lands?” asked Beth L. McGee, Chesapeake Bay Foundation Senior Regional Water Quality Scientist.

Intensive grazing systems, a type of rotational grazing that uses higher per acre stocking rates in smaller grazing or pasture units, can provide multiple benefits for farmers and the environment. These systems can help maintain and enhance farm profitability while reducing labor and input costs. Compared to more traditional confinement operations, intensive grazing can result in improved soil health, an increase in sequestered carbon and decreased emissions of other greenhouse gases.

Environmental markets—the buying and selling of ecosystem services like clean air and water, and wildlife habitat—help more private landowners get conservation on the ground. Markets attract non-Federal funding to conservation, complement USDA’s work with agricultural producers, and can yield natural resource improvement at a lower cost to other approaches.

USDA’s Natural Resources Conservation Service (NRCS) is a Federal leader in supporting the development of environmental markets, largely through its Conservation Innovation Grants (CIG) program. Among CIG recipients are one of the earliest and most successful water quality trading programs in Ohio’s Great Miami River watershed and the Ohio River Basin water quality trading program, a recipient of the U.S. Water Prize this year. Also through CIG, USDA hosted an event in November 2014 celebrating a first-of-its-kind transaction—the purchase by Chevrolet of carbon credits generated on ranch lands in North Dakota.

On April 13, 2015, the U.S. Water Prize was awarded to the Electric Power Research Institute (EPRI) for its innovative effort to develop and establish a multi-state water quality trading program in the Ohio River Basin. Through this program, utilities are paying farmers to implement conservation practices that reduce nutrient runoff into local waterways.

The Natural Resources Conservation Service (NRCS), part of USDA, has been a Federal leader in supporting the development of Environmental Markets, including the groundbreaking Ohio River Basin trading program. To help our stakeholders and the public understand our interest and role in environmental markets, I’m excited to announce that today we are launching a series of new web pages dedicated to NRCS’s work in supporting the development of environmental markets.