Community guidelines for accessing forestry voluntary carbon ... - FAO

Community guidelines for accessing forestry voluntary carbon markets
11. Analysis of remote sensing imagery and geo-referencing of sites;
12. Conducting a forest inventory (including sample plot
establishment);
13. Engaging third party validators; and
14. Project registration fees (depending on the standard used).
At later stages of the project, when it is time to verify carbon credits
or deliver them to investors, another set of costs will occur for the
following:
• Verification of all aspects that require certification, carbon
stocks, social and biodiversity indicators. Costs can be reduced
if verification against different standards are combined in one
audit, e.g. VCS and CCBA together.
• Brokerage fees (normally between 1-3 percent of the traded
value).
• Registration and issuance fees. These depend on the size of
the project in terms of volume of carbon credits.
It is impossible to provide cost estimates for these activities because it
depends on the complexity of the project, as well as whether it is located
in a country where reliable, good quality services can be acquired from
local experts. This can lower the costs quite significantly compared to
hiring consultants from abroad.
Types of finance
Financing projects through civil society organizations, including
environmental and religious NGOs, is the most common source of
finance. But in the case of forestry VCM projects, private sector financing
is becoming increasingly common. This is often driven by Corporate
Social Responsibility (CSR), in particular, the desire to be seen to do
business in a carbon neutral fashion.
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