Page 23 - Georgia Forestry - Issue 4 - Fall 2024

of carbon markets.
As for water markets, one of the biggest
hurdles is simply the lack of investment and infrastructure. Water utilities, which are essential players in the development of these markets, have faced financial strains, particularly in the wake of the COVID-19 pandemic. Many utilities are hesitant to invest in water-quality improvement proj- ects while they struggle with immediate financial pressures. However, Smalligan sees this as a long-term opportunity.
“Water is the hundred-year play, and carbon is the darling of the ball right now,” said Smalligan.
Both Smalligan and Thomas are work- ing to address these challenges by devel- oping new frameworks that make it easier for landowners to participate in both carbon and water markets. Smalligan’s proposed Michigan Carbon and Water Fund, for example, seeks to pair federal investments in carbon sequestration with strategic activities that have water quality benefits. By focusing on key watersheds and working with partners like land trusts, the fund aims to create a sustain- able framework for ongoing investments after federal funding runs out.
W a t e“r i s t h e hundred-year play, and carbon is the darling of the ball right now.
— Mike Smallig”an, Forest Stewardship Coordinator, Michigan Department of Natural Resources
The Importance of Flexibility for Landowners
One key to success in both carbon and water markets is flexibility. For many landowners, long-term contracts can be a barrier to participation, especially when there is uncertainty about future land use opportunities. Thomas has addressed
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