NOVASOIL : case study of “Rabo Carbon Bank”
Read on the financial sector creating a carbon market for farmers and business though the “Rabo Carbon Bank”
AREFLH is a partner of the NOVASOIL project (Innovative Business models for soil health). Its general objective is to highlight the benefits of investments in soil health for society and the environment.
The aim of the “Rabo Carbon Bank” case study is to show that the financial sector can create a carbon market for farmers and business. The Dutch Rabobank supports farmers in developing sustainable business models (e.g. by providing financing solutions and agronomic advice).
These business models aim is to reduce carbon emissions by switching to regenerative farming practise. These practices include reducing the use of chemical fertilisers and pesticides, improving crops rotation, using cover crops and raising water levels. The carbon reduction achieved through these practices is verified and carbon credits are sold (Rabobank, 2023).
The bank operates internationally. Three-year trials of the “Rabo Carbon Bank” described above are currently underway in the United States and the Netherlands with dairy and arable farmers (Banken NL, 2022).
The case study will analyse factors relevant to the acceptance of the business model by Dutch farmers. A discrete choice experiment (DCE) will be used to determine the influence of contact attributes (e.g. contract length, financial and agronomic support, prices offered and management requirements) and current farming practices.
- High agricultural commodity prices may encourage intensive farming practices.
- Social awareness (interested in regenerative farming practices
- Policies, potential support for investment (e.g. in technology)
- Rabobank and other financial services providers
- Farmers associations
- Farmers collectives
For more information read the full article on the Novasoil website
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This project has received funding from the European Union’s Horizon 2020 Research and Innovation Programme under Grant Agreement n°101091268