Carbon Offsetting in Olive Oil Production
Olive oil production is going green with carbon offsetting, and it’s transforming the industry. Here’s what you need to know:
- Why It Matters: Agriculture contributes 10–12% of global greenhouse gas emissions. Olive groves naturally absorb CO₂, removing about 10.65 kg (23.5 lbs) of CO₂ per liter of olive oil produced.
- Consumer Trends: 80% of buyers prefer eco-friendly products, and demand for organic olive oil has grown to 20% of total consumption in North America and Europe.
- Carbon Credits: Olive producers can calculate their groves' carbon absorption and sell credits (valued at $37–$90 per ton) in voluntary markets, generating extra income.
- Challenges: Certification and monitoring can be complex and costly, but new tools from the International Olive Council (IOC) aim to simplify the process.
- Success Stories: Companies like Deoleo and Borges have seen sales grow by focusing on sustainability, with organic product sales rising by up to 30%.
Carbon offsetting not only helps fight climate change but also opens new financial opportunities for olive oil producers. Dive in to learn how it works and the steps to get started.
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Carbon Footprint of Olive Oil Production
Understanding the carbon emissions tied to olive oil production and the carbon storage potential of olive groves is essential for creating effective offset strategies. Let’s break down the key emission sources across the production chain and explore how olive groves naturally capture carbon.
Emission Sources in Olive Oil Production
From cultivation to bottling, emissions occur at every step of olive oil production. Agriculture alone contributes about 10.12% of greenhouse gas emissions in the European Union. Within the agri-food sector, farming operations dominate, accounting for 80% to 86% of emissions. Olive oil production specifically emits between 3.34 and 7.74 kg of CO₂ equivalent, largely due to the use of fertilizers and pesticides.
Key contributors during farming include:
- Plant protection products: 24.11% of emissions
- Fertilizers: 20.01%
- Pomace treatment: 18.56%
Beyond farming, the processing and packaging stages add significantly to the carbon footprint. Packaging, particularly when glass bottles are used, contributes between 1.13 kg and 3.20 kg of CO₂ equivalent, making material selection a crucial factor in reducing emissions. Transportation and distribution also play a role. For example, the carbon footprint of 1 kg of unpackaged virgin olive oil ranges between 1.93 and 3.00 kg of CO₂ equivalent. Another analysis of five case studies found that the carbon footprint for 5 liters of olive oil varied between 4.48 and 10.1 kg of CO₂ equivalent, depending on production methods .
How Olive Groves Store Carbon
Olive groves act as natural carbon sinks, storing CO₂ in both tree biomass and soil. However, their ability to capture carbon depends heavily on how the groves are managed.
Traditional olive groves outperform intensive systems in carbon sequestration. For every kilogram of unpackaged oil produced, traditional groves remove 5.5 kg of CO₂ equivalent from the atmosphere, compared to 4.3 kg for irrigated systems and just 2.7 kg for intensive methods. Data from fifteen olive grove plots in Estepa, Spain, illustrates this potential: these groves sequestered 412 metric tons of CO₂ equivalent annually, with individual trees absorbing between 0.6 and 2.6 tons of CO₂ equivalent per hectare each year.
Soil carbon storage adds another layer of benefit. Some groves can sequester an additional 0.36 to 2.1 tons of CO₂ equivalent per hectare annually. Practices like cultivating temporary spontaneous cover crops, maintaining ground cover, and using organic amendments such as shredded tree prunings and composted olive mill pomace can significantly enhance this effect. Research shows that groves employing these methods can achieve a carbon balance up to five times higher than those that don’t.
On a global scale, olive groves hold immense potential for carbon sequestration. According to the C-Olivar analysis, they could capture approximately 10.96 million tons of CO₂ equivalent annually. Under optimal management, this figure could rise to 55 million tons per year.
"The application of organic fertilizers and facilitating temporary spontaneous cover crops achieve a positive carbon balance and reduce the negative impacts of olive cultivation."
– Lázuli Fernández, University of Jaén
"From the Estepa PDO, we continue to work steadfastly to obtain rigorous data that highlight the essential role played by our olive groves as a carbon sink and their ability to mitigate the effects of climate change."
– Moisés Caballero, Estepa PDO
How Carbon Offsetting Programs Work
In olive oil production, carbon offsetting transforms the natural carbon absorption abilities of olive groves into measurable and tradeable carbon credits. This involves three main steps: calculating emissions and carbon capture, implementing strategies to reduce emissions, and creating certified carbon credits that can be sold in voluntary markets.
Steps in Carbon Offsetting Programs
The process kicks off with olive growers providing detailed information about their farming practices. This includes data on fuel usage, fertilizers, irrigation, and soil management, which is used to calculate both emissions and carbon capture. These calculations are performed using the International Olive Council's (IOC) carbon balance calculator. This tool evaluates the net carbon balance of each olive grove, factoring in the unique characteristics of olive trees and their ability to store carbon in both biomass and soil over the long term.
Once the data is collected and analyzed, the next step involves verification and certification. Using the Verra VM0042 v2.1 standard, which focuses on improved agricultural land management, and adhering to EU Regulation 2024/3012, the process ensures that the carbon sequestration is accurately measured and meets international standards. The verified carbon savings are then converted into tradeable credits.
In May 2025, the IOC launched its Carbon Balance pilot program, which received submissions from over ten countries and covered more than 1,000 hectares. Juan Antonio Polo Palomino, head of the IOC's Olive Oil Technology and Environment Department, highlighted the program's goals:
"During the pilot phase, participants will be able to calculate the carbon balance of their olive grove using a free online tool, receive technical assistance, and provide feedback".
Certification Tools and Frameworks
The International Olive Council plays a leading role in developing global frameworks for assessing the carbon footprint of olive groves. In March 2025, the IOC hosted its third working session on the Carbon Balance Project in Madrid, Spain. This meeting aimed to finalize an international methodology for calculating carbon balance, including the creation of algorithms and software to ensure precise and transparent measurements.
To make the process accessible to all producers, the IOC collaborates with AENOR, Spain's top certification body. Together, they are creating tools that combine expertise in olive cultivation with proven certification practices. The methodology allows producers to use routine farming data, making it easy for growers of all sizes to participate without needing advanced technical knowledge. The IOC's carbon balance calculator is tailored to the specific characteristics of olive groves while aligning with global carbon credit standards.
These tools are designed to streamline the process for producers, enabling them to enter the voluntary carbon market with confidence.
Joining Voluntary Carbon Credit Markets
Once the data is verified and certified, producers can sell their carbon credits on voluntary markets. Olive groves, on average, capture 4.58 tonnes of CO₂ per hectare annually. For perspective, producing just 1 liter of olive oil removes about 10.65 kg of CO₂ from the atmosphere. With approximately 11 million hectares of olive groves worldwide, the collective impact is enormous - each hectare offsets the yearly carbon footprint of one person.
To help producers navigate these opportunities, the IOC’s pilot program offers online training and technical support. This guidance ensures growers understand the certification process and market dynamics.
At Big Horn Olive Oil, we are committed to sustainable practices and are continually exploring ways to incorporate verified carbon offset programs into our production methods.
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Benefits and Challenges of Carbon Offsetting
Carbon offsetting in olive oil production offers both environmental and financial rewards, though it comes with its own set of practical challenges.
Environmental and Financial Gains
Traditional olive groves are natural carbon absorbers, removing about 5.5 kg of CO₂ equivalent per kilogram of oil produced. This is significantly higher than the 4.3 kg for irrigated cultivation and 2.7 kg for intensive farming methods. On a global scale, these groves could potentially sequester 21 million tons of CO₂ annually. Thanks to their deep root systems - seven times larger than those of annual plants - olive trees excel at capturing carbon in both their biomass and the surrounding soil.
The financial side is equally promising. In September 2023, carbon credits in the European Union were valued at €83 (around $90) per ton, while California reported prices of $37.49 per ton in July 2023. Farmers involved in the Green Economy and CO₂ project in Italy and Croatia provide a great example: over three years, 160 farmers sequestered 6,500 tons of CO₂, generating €539,500 (approximately $582,000).
Organic farming methods can amplify these benefits. Francesco Musardo, a specialist in sustainable agriculture, highlights this:
"The same tree grown organically will absorb more than two or three times that quantity. This might give new financial incentives to go organic to many growers".
Additionally, adopting low-impact farming techniques can cut production costs by about $292 per hectare, thanks to more efficient use of resources.
While these benefits are significant, they don’t come without hurdles.
Practical Challenges
Implementing carbon offset programs is no small task. Certification is one of the biggest challenges, requiring producers to navigate complex documentation and verification processes. Monitoring carbon output means tracking multiple factors - fuel usage, fertilizers, irrigation, and soil management - which demands technical expertise.
Switching from intensive to traditional farming methods can also lead to short-term dips in productivity. On top of that, market conditions for carbon credits are unpredictable, with prices fluctuating frequently.
For smaller producers, the initial costs of certification, monitoring tools, and adapting farming practices can be a financial strain. These upfront investments may feel daunting, especially without immediate returns.
Comparing Benefits and Challenges
| Benefits | Challenges |
|---|---|
| Revenue from carbon credits ($37–$90+ per ton) | Complex certification and verification processes |
| Lower production costs (~$292 per hectare) | High initial costs for certification and monitoring tools |
| Potential premium pricing (around $3.25 extra per bottle) | Transitioning to traditional methods involves a learning curve |
| Sequester 2.7–5.5 kg CO₂ per kg of oil | Market volatility and time-intensive reporting |
With careful planning and a long-term perspective, the rewards of carbon offsetting can outweigh the challenges. Accurate measurement, strategic investments, and adaptability are key to making these programs work.
Big Horn Olive Oil serves as an example of how balancing these dynamics can lead to sustainable production practices.
These insights pave the way for a closer look at real-world carbon offset projects.
Case Studies and Industry Programs
As we delve deeper into the practical side of carbon offsetting, real-world initiatives in the olive oil industry highlight how these programs can transform environmental efforts into economic advantages for producers.
Carbon Balance Projects in Olive Oil
The International Olive Council (IOC) Carbon Balance Project stands out as a key initiative in this space. In partnership with the Spanish Association for Standardisation and Certification (AENOR), the project has developed a global framework and digital tools specifically designed to measure the carbon balance in olive groves.
The pilot phase of the project, which accepted registrations between April 24 and May 30, 2025, saw an incredible response. Within just 24 hours, applications poured in from over ten countries, covering more than 1,000 hectares across various planting systems. This enthusiastic participation underscores the industry's readiness to embrace carbon offsetting initiatives.
Jaime Lillo, the Executive Director of the IOC, highlighted the significance of this effort:
"This pilot phase is a key step in developing a dedicated scientific methodology and sector-specific tools that will allow producers, cooperatives, researchers and technicians to accurately calculate the net carbon balance of their olive groves".
The framework adheres to the Verra VM0042 v2.1 standard for generating carbon credits and complies with EU Regulation 2024/3012, ensuring that the program meets international standards and earns global recognition.
Another noteworthy example is the Alberami Project in Italy. This initiative has implemented regenerative agriculture practices across 1,500 hectares, involving 67 farmers. Participants are required to adopt at least three practices from a list of 13 focused on sustainable and regenerative agriculture.
The financial outcomes are impressive. Farmers in the Alberami Project earn up to 75% of the profits from carbon credit sales, with an average income of €250 (approximately $270) per hectare. Francesco Musardo, the project's founder and CEO, has crafted a model that aligns environmental sustainability with farmer profitability.
Practical Applications for Producers
These projects offer actionable pathways for olive oil producers to engage with carbon offsetting while reaping both environmental and financial rewards. The IOC framework, for instance, provides free online tools for calculating carbon balance, along with training and technical support. This accessibility eliminates many of the hurdles that smaller producers often face.
Producers like Big Horn Olive Oil, known for their Ultra Premium Extra Virgin Olive Oils, can use these frameworks to align with global standards. According to the IOC's methodology, producing 1 liter of olive oil removes 10.65 kg of CO₂ from the atmosphere, while olive groves can capture 4.58 tons of CO₂ per hectare annually.
The process is straightforward: farmers and cooperatives submit data on their agricultural practices, including fertilizer use and fuel consumption. The digital tools then calculate the net carbon balance, enabling them to generate verified carbon credits for sale in voluntary markets.
Juan Antonio Polo Palomino, head of the IOC's Olive Oil Technology and Environment Department, shared the broader vision:
"Our goal is to ensure society recognizes olive groves as agro-ecosystems that, in addition to producing the best vegetable fat known to humanity, extra virgin olive oil, also provide ecosystem services that benefit human well-being, such as helping combat climate change and contributing to planetary health".
Success hinges on adopting sustainable practices such as optimizing fertilizer use, maintaining soil green cover, and effectively managing pruning residues. Precision agriculture tools, like drones for aerial monitoring and soil moisture sensors, can further enhance efficiency while minimizing waste.
These examples demonstrate how practical solutions can drive innovation and encourage broader adoption within the olive oil industry.
Conclusion
The analysis of carbon offset programs and sustainable farming practices highlights the immense potential these initiatives hold for reshaping the olive oil industry.
Carbon offsetting presents olive oil producers with a unique opportunity to combine environmental responsibility with financial gains. Across 11.5 million hectares of olive groves in 58 countries, the potential to sequester around 47 million tons of CO₂ annually is staggering. At current carbon market rates, this could translate into ~$1.87 billion in annual revenue from carbon credits for traditional olive groves (approximately €1.74 billion). Organic farming practices could yield even greater rewards, with earnings reaching nearly $3,230 per tree annually. These figures demonstrate how environmental care and economic growth can go hand in hand.
The IOC’s Carbon Balance Project and advancements like BECCS technology are paving the way for olive oil production to achieve a carbon-negative status. For example, producing a single liter of olive oil can remove approximately 23.5 pounds of CO₂, while olive groves themselves can capture about 4.5 tons of CO₂ per hectare each year. Producers such as Big Horn Olive Oil are already leveraging these developments to align premium-quality products with environmental leadership.
Sustainable farming practices - like optimizing fertilizer use, maintaining green soil cover, and managing pruning residues - further enhance carbon capture while boosting soil health and long-term productivity. These methods not only contribute to a healthier planet but also ensure the resilience and profitability of olive oil production for years to come.
"In short, everyone should understand that consuming extra virgin olive oil is good for both their health and the planet."
With growing consumer interest, supportive regulations, and advanced carbon measurement technologies, the olive oil industry is at a turning point. Producers who adopt carbon offsetting today are well-positioned to lead an evolution that benefits both the environment and their business.
FAQs
How does carbon offsetting in olive oil production help reduce greenhouse gas emissions?
Carbon offsetting in olive oil production works by tapping into the natural ability of olive trees to absorb and store carbon dioxide (CO2). Olive groves act as carbon sinks, pulling CO2 from the air, which helps balance out the emissions created during the production process.
On top of this, adopting eco-friendly practices like using renewable energy sources and implementing carbon-reducing farming methods can cut emissions even further. Some farmers also take part in carbon credit programs, where they measure the amount of CO2 their olive trees remove from the atmosphere. These programs not only promote greener farming techniques but also encourage responsible land use. Altogether, these steps contribute to making the olive oil industry more environmentally conscious.
How do olive oil producers benefit financially from carbon offset programs?
Olive oil producers have a chance to boost their earnings by getting involved in carbon offset programs. These programs reward producers with carbon credits for adopting sustainable practices, like cutting emissions or planting trees, which they can then sell for extra income.
On top of that, going green can help trim production costs over time. For instance, using energy-efficient equipment or finding ways to minimize waste can lead to significant savings. There’s also the added bonus of increased consumer interest - many shoppers are willing to spend more on products made with sustainability in mind. This not only improves profitability but also builds a stronger brand image in today’s eco-aware marketplace.
What are the main challenges olive oil producers face with carbon offsetting, and how can they address them?
Olive oil producers face several hurdles, including steep costs, a lack of technical know-how, and doubts about the long-term benefits of carbon offsetting. These challenges can make adopting sustainable practices feel like an uphill battle.
To tackle these obstacles, producers can turn to practical solutions like bioenergy with carbon capture, applying sustainable soil management practices, and following established carbon credit standards. These approaches help cut costs, boost soil quality, and strengthen the reliability of offsetting efforts, leading to more meaningful outcomes over time.