CowCredits are issued by Washington, DC headquartered non-profit organization, Verra, and are generated based on a reduction of methane from enteric fermentation in cattle. They are the first of their kind in the world, according to Mootral, which developed them.
The audited credits originate from UK dairy farms using Mootral's feed supplement, which according to that developer, reduces methane emissions by up to 38%. Profits from CowCredits sales are reinvested by farmers to subsidize feed costs.
Thomas Hafner, CEO of Mootral, said the sales indicates the strength of the demand for such hyperlocal, high-quality credits as firms seek to credibly offset their carbon footprint.
The company maintains that UK businesses are proactively seeking the “highest quality credits” to meet environmental, social, and governance (ESG) targets and protect their reputation amid an offsets credibility crunch. “CowCredits offer a premium, local alternative to international offset projects.”
Each CowCredit is equal to a reduction of 1 ton of CO2 and this aspect, said Mootral, creates value for everyone: farmers, producers, consumers, and governments. “They offer a certified climate project for businesses in other industries to contribute towards, driving finance into agricultural projects that have an immediate, measurable and permanent impact on mitigating climate change.”
Last month the Mootral CEO talked to this publication about how the Swiss-British agri-tech company is looking to reduce methane intensity, improve health and productivity in dairy cows.
Mootral, said Hafner, will continue “to onboard British dairy farmers, enabling them to reduce methane emissions from their cattle, with the proceeds from the sale of carbon credits covering the full cost of our product.”
“Farmers that helped generate these credits benefitted from the significantly improved economics the performance and health gains our product brings with it. These benefits include a 4.1% increase in energy corrected milk yield, an 18% reduction in cases of mastitis, and a 35% reduction in cases of milk fever, as well as near complete fly abatement. We believe it is a massive win for farmers and our environment,” he told us.