Profitability of Direct Greenhouse Gas Measurements in Carbon Credit Schemes of Peatland Rewetting

Abstract

MoorFutures® is the world's first carbon credit scheme from peatland rewetting. Thus far, MoorFutures® rely on proxies (greenhouse gas emission site types or GESTs) to estimate emission reductions. Here, we tested the profitability of including direct greenhouse gas (GHG) measurements of project emissions for a range of rewetting costs and vegetation scenarios based on a hypothetical MoorFutures® project. In almost all scenarios GEST assessments underestimated emission reductions compared with direct measurements. Including direct measurements was lucrative in >50% of all vegetation scenario/rewetting cost combinations with net profits ranging from EUR −8.18 to 26.31 per certificate. Profitability was achieved at rewetting costs of ~EUR 5400ha−1 upward. More sophisticated GHG measurements became profitable at twice the rewetting costs. In cases where direct flux measurements do not generate a profit they can strengthen reliability and buyers' trust and thus support higher prices of the certificates.