The challange

1. First Hungarian Carbon management Ltd.„Agricultural Emission Reduction by Partial Replacement of N Fertilizer and Change of Soil Tillage” The elaboration and implementation of this project has been done in close cooperation with the SZIE and based on the results of Prof. Márta Birkás T

2. The challange • The total CO2 emission of Hungary is 79 million tons • The agriculture contributes by 11 % to the total emission • Agriculture is the second largest issuer after the energy sector • This proportion did not change in the last decade

3. Aim of the project • Reduction of the GHG emission of the soils • Generation of additional income for farmers by sustainable technological change • Yield growth • Improvement of the quality of the cultivated soils • Cost savings The project has received the Approval of the Ministry of National Development

4. Scedule of project implementation • Preparation, counceling, consultations: April, 2011 • Investment start: September 2011 • Period of crediting: Sept.1 2011- 31 Aug. 2016 (5 years) • Project duration: 2011-2018 (8 years) • JI support statement: July 20, 2011 • Project approval issued: May, 2012 • Place of implementation: North Hungarian and Trans Danubian regions at 25 000 ha

5. Emission Sources of the agricultural activity • CO2 and N2O emission of the soils • N2O and CH4 emission of the manure treatment • CH4 emission deriving from the ruminants’ digestion

6. Measures for reduction of GHG emissions • Partial replecement of fossil N fertilizer • (proposed: 50 kg N acive substance equivalent/ha ) • Usage of biological nutrient instead of fossil N (Complex bacterial fertilizer and algal leaf fertilizer) • Introduction of carbon saving soil tillage system • Central principles of the project are in line with the IPPC (2011) recommendation: increasing adaptability of arable crops related to climate change

7. Calculated Sources of GHG Reduction • CO2 equivalent of fossilfuelsthatwould be necessaryfortheproduction and usage of theunusedfertilizer • Direct and indirect N2O emissions of theagriculturalactivity • Increasedamount of soilcarbonrelatedtothechangeinthesoiltillagesystem The differencebetweentheconventional and proposedtillagesystemonsoilcarbonstoragetakesabout 2,235 t of carbon, which is equivalentto 8,18 t/ha GHG emissionreductionin CO2 equivalent

8. Carbon losses at different tillage methods in summer

9. Biological effects Bacterial fertilizer: • About 50 kg N/ha • Increased cellulose degradation • N fixation, P mobilising Algal leaf fertilizer • Improved germination and growth • Stimulated growth of roots and plants • Earlier flowering, better fruit setting, shorter growing period • Improves the taste and flavour formation of the friuts • Improves storabiltiy, lowered nitrate content • Higher pest and desease resitance and drought tolerance

10. Monitoring • Planned emission reduction is 1 mill. tonnes in 5 years (200 000 tonnes/year on 25 000 ha) • The CO2 emission reduction commitment means the difference between the baseline emission and the emissions occuring after technological change. • Meeting of the commitments require an internal strong monitoring control and external, international validation

11. Source Gas/Carbon storage Status of project calculation Explanation Direct soil emission CO2 Calculated CO2 emissons related to soil tillage C Calculated Carbon from plant residues recycled into the soil N2O Calculated Direct N2O emissions related to the use of fertilizers N2O Calculated N2O emissions related to the use of manure N2O Calculated Direct N2O emissions of nitrogen fixing plants N2O Calculated Direct N2O emissions of plant residues recycled into the soil Indirect soil emission N2O Calculated Indirect N2O emissions related to the use of fertilizers N2O Non calculated Indirect N2O emissions related to the use of manure Calculations related to the production of fertilizers CO2 Calculated Production related CO2 emissions calculated by type of fertilizer Baseline calculation

12. Data subject to monitoring • The amount of nutrients used both from organic and synthetic fertilizer • The composition of nutrients used (quantity and quality control) • Follow the soil tillage technique used in the soil preparation period • Follow the soil tillage technique used in the after harvest period • Changes in the amount of plant residues • Inventory of the own and hired soil tillage machines, which are suitable for the implementation of the new technology both in quality and capacity.

13. Monitoring • Use of GN 2009-2014 program Completion of the log book • Provision of nitrate data • On the spot control including sampling • Parcell identification based on GPS

14. Advantages for farmers • Receive organic fertilizers in a value of 12 000 Ft. (20 l/h/year (a: 600 FT+ VAT /l) • Receive support for tillage machinery in a value of 3400 Ft/ha

15. Farmers’ obligations in relation to the project • Statement on the right of land use • Follow the technology determined • Meeting administrative obligations (supplying data by crops) • on a contracted bases

16. Summary • The indicator number one of the program implementation is the volume of GHG emission reduction. The planned 1 million tonnes of CO2 equivalent emission reduction is considered to be an outstanding magnitude among agricultural projects. • Based on the the changes in farming technology and the use of complex bio fertilizers it may be clearly stated that the program implementation is an extra voluntary environmental performance. • Farmers implement environment friendly farming management that is beyond the requirements formulated in the EU's common agricultural policy and strenthgen adaptation to the climat change ahead of us.

17. Thank you for your attention