
Nick Pyatt helped to introduce carbon credit schemes to impoverished Orissa farmers
It’s not easy for anyone at first to grasp the concept of earning cash from catching carbon particles. Nick Pyatt, an expert on carbon credit schemes, laughs when he recalls the initial reaction of farmers to a pilot scheme that he helped launch in rural Orissa (eastern India). He said: “They couldn’t believe at first that anybody would be stupid enough to pay for something that you can’t see. You know you’ll always get a real answer from a farmer. In the beginning they looked upon it with admirable scepticism.”
Mr Pyatt’s carbon credit investigation formed part of a planned wider development project which hopes to create a different economic, social and environmental future for 8,000 impoverished farmers. The Orissa farmers, who own small individual plots of degraded land, lack collective power. But Mr Pyatt’s pilot project worked to create a system in which they could collectively grow trees and collectively profit by selling the resulting timber, paper pulp, fruit – and carbon credits – to big industries.
The farmers also lack the experience to run a competitive business. But with the money that they could potentially collectively generate, they would be able to buy in the management skills that they were missing.
The pilot project proved that the business model could succeed – and could generate Rs 20-30 crore over 20 years. Mr Pyatt is now working to secure funding and allow it to be launched in full. He said: “The business was viable, and the carbon credits aspect was a bonus.” He hopes his efforts will provide a benchmark for future forestry carbon credit schemes across India. The website carboncatalog.org lists just over 50 carbon credit schemes based in India – but only three on the list are forestry-related.
The Orissa scheme reflects Mr Pyatt’s strong belief that carbon trading can benefit the poor as well as big business. His thinking is in key with the UN Environment Programme, which in May 2009 launched a $12 million study into ways of enabling the world’s poorest farmers to benefit from carbon trading. The study, named the Carbon Benefits Project, is to examine rural sites in Kenya, Niger, Nigeria and China to see how much carbon is stored in trees and soil when land is managed in sustainable ways. A Reuters report on the initiative said: “Putting a price on living trees and storing carbon in the soil could give developing countries an incentive to save forests and adopt more climate-friendly farming practices.”
Some in the global environmental movement are, however, still questioning the validity and even the ethics of carbon credit schemes. Environmental protesters have even appeared outside the offices of carbon offset companies dressed in fish costumes – because they believe the issue to be a ‘red herring.’ One British journalist memorably compared the buying of carbon credits to papal indulgences, allowing the guilty to simply pay for absolution rather than having to change their polluting behaviour.
Mr Pyatt said in response: “I think that if you were saying carbon offsetting means we don’t have to do anything else to save the planet, then that argument would be true. But if we accept that we have to change our behaviour, and if certain things can’t immediately be changed, then carbon offsetting is very useful.”
He added: “If I have a big factory and I can’t afford £50 million to re-equip it, I’m not going to just put myself out of business for the environment. Carbon offsetting schemes are necessary in such situations. Climate change is the biggest single issue for mankind. But we’re unable to just change everything overnight.” Mr Pyatt believes that “to make sustainable change” in human activity and behaviour, “there needs to be flexibility in the system.” He said: “Carbon credits provide that flexibility.”
For the uninitiated, carbon trading schemes can be either validated by the Kyoto Protocol’s Clean Development Mechanism (CDM) system, or they can exist independently of this. Questions have been posed over the reliability of some independent schemes. But CDM has also faced criticism, with some blaming its super-strict criteria for slowing the growth of carbon trading.
Mr Pyatt’s Orissa scheme was non-CDM. He said: “We weren’t going to be forced to commit to anything – that was our guiding principle. CDM has some question marks, particularly around the forest sector. It’s so stringent and complicated. There is currently only one forestry project in the world that is CDM approved, and that is in China.”
It is the difficulties in implementing CDM approved forest carbon schemes which partially explain why growing trees for carbon credits in India is yet to widely take off. Independent carbon trading projects such as Mr Pyatt’s now have the potential to unleash a new era of reforestation – for the benefit of both business and the poor.
Nick Pyatt runs Flow International, which is a UK-based firm that provides coaching for organisations to strengthen performance and responsibility. He can be contacted at n.pyatt@flowinternational.co.uk.
The pilot carbon credit project in Orissa was carried out by Flow International, Schumacher Centre, Amity Institute of Global Warming and Ecological Studies and Dialogue Associates.
See www.schumachercentre.org for more details on Schumacher Centre.