EPCOR has committed to purchase up to two million tonnes of verified emission reductions credits under the program. Farmers participating in the program receive a payment based on the amount of verified emission reduction they create by reduced tillage. By adopting reduced tillage practices, carbon is permanently sequestered in the soil, topsoil is preserved and fuel consumption is reduced.

"Under this program, farmers apply environmentally sound practices and make some extra money doing it," said barley and canola farmer Jack Richardson, of Richview Farms near Crossfield, Alberta. Mr. Richardson qualified for the program by reducing his tillage from two passes to one. The program currently has more than half a million acres under contract, from which more than 60,000 tonnes of emission reductions have so far been third-party verified. This is the equivalent to taking more than 15,000 cars of the road for one year(*).

"This carbon credit program will help us manage our greenhouse gas emissions while supporting sustainable farm practices," said Doug MacLeod, EPCOR's Vice President of Environment. "This purchase also positions EPCOR well in the emerging greenhouse gas offset credit markets, and builds our expertise."

CROP and EPCOR plan to roll out the program throughout Alberta and beyond to other provinces.

Under the program, EPCOR purchases emission reduction credits from CROP. The carbon credits can be sold or be used to meet EPCOR compliance requirements under the province's new environmental laws. Greenhouse gas reductions under the program are independently verified by a third party under terms in the province's new emission reductions regulations.

"We are pleased that farm practices are being recognized by the Alberta legislation as part of the long term solution for greenhouse gas issues," said Lynn Kennett, General Manager of CROP. "We are working with local agricultural businesses who best understand their customer's needs and can deliver value by helping farmers take advantage of this new opportunity."

EPCOR and CROP spent three years developing this carbon offset project. The companies have developed a proprietary data management system that farmers use to document and verify the practices that produce carbon credits under the new provincial rules.