Page 28 - Georgia Forestry - Issue 2 - Spring 2022

A Growing Market
For several years, forests have received increasing national and international attention as scientists, nonprofits, politi- cians and business leaders have debated and searched for solutions to climate change. That growing recognition has ini- tiated a flood of capital from corporations that are looking to purchase carbon credits to reduce their own carbon emissions.
By 2020, companies such as BP, Microsoft, Amazon, Apple, Delta, Facebook, Google, Starbucks and many more announced that they were going to focus on carbon removal as a key priority in their climate strategies. Forests, re-forestation and conservation initiatives were largely recognized as part of the overall strategy.
Companies have invested or pledged to spend billions of dollars in securing carbon credits. In response, businesses such as NCX (formerly known as Silvia- Terra) and Finite Carbon and nonprofits such as the American Forest Foundation have sought to expand the voluntary
carbon offset market to smalle
r
satellite imagery to determine e
r forest landowners — ditching
the older, California-style 100-year agreements for shorter agreements that range from one to 30 years.
NCX was one of the first companies to launch a short-term, one-year harvest deferral contract for land- owners. The company uses
WHAT THE HECK IS A CARBON CREDIT?
the carbon potential and value f o
n
r
tract. Landowners are compensated for the additional carbon accumulated by agreeing to defer harvest activities for
e
o
i
i
v
v
A carbon credit allows a company to invest in carbon projects to offset its own carbon emissions. Credits must
represent a measurable reduction, offset or removal of greenhouse gas emissions through a third-party-verified carbon project.
m m
wood volume, tree species an
d d
n
proximity to timber markets. Th e
r
one year.
As an early investor in NCX, Microsoft
signed on to buy 200,000 offsets when the company opened its market to forest landowners in 11 Southern states in April of 2021. At $17 per credit, Microsoft’s total investment was $3.4 million. According to NCX, its winter 2022
h
r er
e
s
s
e
e
metrics are then used to dete
i i
n n
e e
f
a a
g g
e
e
n
cycle included nearly 1,800 landowners with a total of 2 million acres across the contiguous United States, stretching across 39 states, including Georgia. Through the three program cycles, NCX has enrolled more than 200 forest landowners in Georgia.
In addition to NCX, other carbon devel- opers are making progress launching carbon programs for small landowners.
COMPANIES OFFERING CARBON CREDITS
NCX
AFF & TNC Family Forest Carbon Program
Finite Carbon’s CORE Carbon
BlueSource
Corporate Investors
Microsoft
Amazon
BP
Oak Hill Advisors (investment firm)
Active
Yes
Only available in PA, WV and select counties in MD.
Plantations not currently accepted
Coming soon nationwide
Yes
Acreage Limitation
All forest landowners
All forest landowners
40-5,000 Acres
~3,000-acre minimum
Time Frame
Verification Standard
IMPORTANT NOTE ABOUT THIRD-PARTY VERIFICATION
1 year
VCS (Concept approved, seeking full approval)
10-20 years
VCS
40 years
ACR
40-100 years
ACR
Methodology
Short-term harvest deferrals
Improved forest management/delayed harvest (excludes plantations)
Harvest deferral
Harvest deferral
Based on the way third-party verification rules are currently written, if a landowner enrolls their land in a carbon program, they cannot participate in a different carbon program in the future, even if their agreement/contract has expired. Both NCX and CORE Carbon utilize remote sensing in their program methodologies. The Family Forest Carbon Program has two programs that either pay landowners to manage invasive species or defer harvest using sustainable forest management plans. The invasive species program is not out yet.
26 | GEORGIA FORESTRY