US outfit launches sheep grazing credits for vineyard systems

Published 10:24 on October 5, 2023  /  Last updated at 10:28 on October 5, 2023  / Stian Reklev /  Americas, Biodiversity, US

Regen Network has established an environmental stewardship credit class for sheep grazing on vineyards, with a first batch of units issued to an estate in California.

Regen Network has established an environmental stewardship credit class for sheep grazing on vineyards, with a first batch of units issued to an estate in California.

“This credit class and its accompanying methodology are designed to support the use of high-density, short-duration rotational targeted sheep grazing in vineyard systems to improve ecosystem functioning through active management of the soil and herbaceous cover in the vineyard understory,” the blockchain-based environmental credit standard and marketplace said.

“As with other Environmental Stewardship methodologies, the environmental benefits are implicit in the practice. Projects being developed under the methodology … are expected, based on prior research, to result in positive ecological outcomes.”

Credits generated under the new methodology will be calculated using a kilo-sheep-hour approach, where one credit will represent the number of sheep multiplied by the hours grazed and divided by 1,000.

A 126.6 hectare project area at Grgich Hills Estate in Rutherford, California has been awarded 109 credits, which have been posted for sale on the Regen marketplace at an average price of $23.50 per unit.

“A unique characteristic of this methodology is that earned credits will be divided between grazers and vineyard owners,” the methodology document said.

“The exact split is negotiable and will vary geographically based on the supply and demand dynamics between grazers and vineyard owners.”

It proposed that US-based projects apply a split giving 65% of credits to the grazers and 35% to vineyard owners.

Regen acknowledged that the brand new methodology is unlikely to be perfect, and expected revisions to be made based on feedback and experience.

As a consequence, projects will initially only be eligible for credit issuances for a year before having to re-register in order to ensure they use the latest version of the methodology.

In time, Regen expects projects to be eligible for 3-5 years before having to go through the re-registration process.

“The methods aim to be straightforward to understand, and the project approval process will be relatively quick compared to methodologies focused on carbon sequestration,” it said.

Regen’s other methodologies are primarily focused on carbon, and this is the first finalised project type with ecosystem benefits as the prime driver, although the sheep grazing approach also has some climate aspects.

“Research and a long history of practice have shown that planting appropriate ground cover between rows of perennial crops results in many benefits to ecosystem health, while introducing sheep grazing as a means to control vegetative growth … may reduce pesticide, herbicide, and fuel use, decreasing mowing, and build soil organic carbon and soil fertility,” the methodology said.

“Not all these benefits can be expected in every soil and climate type. For example, in Northern California, there are only early indications of soil carbon storage and increased nutrient availability shown to be significant benefits derived from grazing alongside other environmental benefits.”

Other biodiversity-focused project types are in the Regen pipeline as well, including an effort by Brazilian firm Ecosystem Regeneration Associates (ERA) to establish a methodology for jaguar protection.

By Stian Reklev – stian@carbon-pulse.com

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