Carbon Credits

Carbon offset programs allow individuals, companies, or governments to compensate for their greenhouse gas emissions by investing in projects that reduce or remove greenhouse gases from the atmosphere. The demand for carbon credits is growing as businesses and governments seek to meet their emission reduction targets and fulfil their environmental commitments. This market demand for carbon credits could incentivize farmers to cultivate hemp by providing an additional stream of income for their efforts in carbon sequestration and contributing to climate mitigation efforts (Ahmed et al., 2022).

Potential of Hemp in Carbon Offset Markets

The concept of carbon credits related specifically to hemp cultivation is still evolving (Kaur & Kander, 2023; Zhou et al., 2022). However, there is potential for hemp cultivation to play in carbon offset markets due to its ability to sequester carbon dioxide from the atmosphere (Chandra et al., 2008). The biomass produced by hemp, including its roots, leaves, stems, and flowers, contains carbon that can be sequestered in the soil or in long-lasting products made from hemp, such as hempcrete (Arehart et al., 2020; Dhondt & Muthu, 2021). This carbon sequestration potential could be quantified and verified, allowing hemp farmers to earn carbon credits for their sequestration efforts (Hemp Benchmarks, 2021).

Certification and Standards for Carbon Credits

For hemp cultivation to qualify for carbon credits, it would need to undergo carbon sequestration monitoring, reporting, verification, and certification processes to ensure that the carbon sequestration claims are accurate and reliable (Paul et al., 2023; Knodel, 2022). This may involve monitoring and reporting of carbon stocks in hemp biomass and soil, as well as adherence to specific standards and protocols established by carbon offset programs or regulatory bodies (FAO, 2020; Knodel, 2022; Paul et al., 2023).

Measurement Standards

Currently, there are several standards to measure carbon footprint. The Greenhouse Gas Protocol (GHG Protocol), developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), provides guidelines for businesses and governments to measure, manage, and report greenhouse gas emissions (WBCSD & WRI, 2004). The GHG Protocol is internationally recognised and widely used as a standard for carbon footprint accounting (Boukherroub et al., 2024). Specifically, the Product Life Cycle Accounting and Reporting Standard can measure the amount of carbon stored in hemp products and byproducts, in addition to measuring the quantity of carbon sequestered by the plant (Scrucca et al., 2020).

Government Policies and Incentives

Government policies and incentives can also be effective in promoting carbon credits for hemp farming. Supportive policies, tax breaks, subsidies, and regulatory frameworks that recognise and compensate carbon sequestration activities could foster the widespread use of hemp growing for carbon offset objectives (Madden et al., 2022).

Overall, while the concept of carbon credits for hemp farming is still evolving, hemp has the potential to contribute to carbon offset markets and climate mitigation efforts due to its carbon sequestration capabilities (Kaur & Kander, 2023). As interest in sustainable agriculture and carbon offsetting grows, hemp can become a significant participant in the carbon credit environment.