RENEWAL - TSKB Economic Research Publishes New Report: "From Carbon to Credit: Regenerative Agriculture and Carbon Credits"
The TSKB Economic Research has published a new report titled "From Carbon to Credit: Regenerative Agriculture and Carbon Credits." The report focuses on soil, which is of great importance for ecosystems and humans, regenerative agricultural practices for soil preservation, and the carbon credits that can be obtained from these practices. It also highlights the potential role of regenerative agriculture and carbon credits in the recovery of earthquake-affected regions. The report emphasizes the importance of devising a strategy that will enhance the value of existing soil-based wealth during the recovery process in the earthquake-prone area, which is suggested as the most suitable region for the widespread adoption of these practices and the creation of carbon credits.
In the new report that includes disaster issues in its 2024-2026 research agenda, TSKB Economic Research states that soil, which contributes to many areas such as food production, water supply and quality, and biodiversity through its critical ecosystem services, is negatively impacted by widespread agricultural practices. It notes that regenerative agricultural practices not only restore soil health but also increase the amount of carbon stored in the soil, contributing to the fight against the ecosystem crisis. Additionally, it is shared that the carbon sequestered through these practices could be converted into carbon credits, creating an additional source of income for farmers.
The report mentions that in the global search for "quality carbon credits," regenerative agricultural practices can stand out due to their carbon storage capacity and other co-benefits. Regenerative agricultural practices generate multiple co-benefits such as air and water filtration, food security, reverse migration, and strengthening social capital.
The study also suggests an implementation framework for Turkey. It points out that the necessary structure for credit buyers could be designed through intermediary firms or industrial companies with agricultural producers in the supply chain, as well as through Multilateral Development Banks (MDBs).
The report identifies the earthquake-affected area as a priority region for implementing these regenerative agricultural practices in Turkey, indicating that this would also support the recovery and restructuring process in the region.
Key highlights from the "From Carbon to Credit: Regenerative Agriculture and Carbon Credits" report include: • The economic value of ecosystem services provided by soil is estimated at $11.38 trillion according to a study published in 2017. This corresponds to approximately 14% of global GDP for the same reference period, showcasing the significant economic contribution of soil’s ecosystem services. • Driving factors of soil degradation include deforestation, agricultural practices that harm the soil, as well as increasing population and urbanization. • In Turkey, 59% of agricultural lands, 64% of pastures, and 54% of forests are exposed to erosion. The loss of fertile topsoil due to erosion leads to a loss of soil organic matter and a decrease in soil fertility. • Currently, 18% of Turkey’s soils are rated as low sensitivity, 50.9% as medium sensitivity, and 22.5% as high sensitivity to desertification. • The share of renewable energy projects in carbon credits has decreased from 41.5% to 25.8%. • Agricultural projects show a positive distinction in the carbon credits market compared to other sectors. Carbon credits derived from agricultural projects increased with an average annual growth rate of 118.5% from 2020 to 2023. • According to a study, the potential value of credits that could be generated through carbon farming could reach $13.7 billion by 2050.