Ecosystem Services - Forest Guild

carbon aggregation programs throughlandowner meetings and workshops, websites,or direct mailings. If a landowner is interestedin participating in a project, they submit anapplication with basic information about the forestand proof of ownership. Accepted applicants areoffered a contract to complete the carbon offsetproject. This contract requires forest owners tofollow the aggregator’s specific program terms andthe rules of the standard that will be applied to theproject. Contract lengths vary from 15 years to 100years depending on the standard.Project Design DocumentProject development requires the help of aprofessional forester and involves documentationof forest carbon characteristics and forestmanagement in a Project Design Document(PDD). The exact requirements of projectdevelopment vary widely by standard. The PDDincludes information from:1. A carbon inventory that measures the amountof carbon presently sequestered in different partsof the forest. This acts as a baseline against whichfuture carbon sequestration is measured.2. A forest management plan that providesguidelines for current and future forestmanagement.3. A sustainable forest certification that isnormally obtained from the ATFS, FSC, or SFI.A project developer initiates landowner interestvia workshops, mailings, etc.4. Growth and yield modeling, which helps todetermine the total carbon value of the land.Carbon PoolingOnce the PDD is complete, the sub-aggregatoror aggregator uses a data management systemto organize multiple small offset projects into alarger carbon pool. In this context, a carbon poolrefers to an electronic combination of the carbonsequestration potential from multiple smallprojects. Carbon pools are created in order togenerate offsets that are large enough for markettransactions. A forest carbon pool typicallyincludes the carbon sequestration generated by atleast 10,000 acres of forestland. Pooled projectstypically share common characteristics such asgeographic proximity.Verification and RegistrationAn independent third-party verifier confirmsthe information in the PDD to ensurecompliance with carbon accounting standards.The carbon pool is then registered, eitherthrough the marketplace where it will be soldor in the case of over the counter (OTC) sales,on a carbon registry that tracks the ownershipof the carbon pool through all marketinteractions. Offsets increasingly pass throughmultiple owners (due to market speculation)before they are used to offset emissions andthus retired. Registries help to prevent fraudby making sure that an offset is only retiredonce.Marketing and SalesMarketing and transaction decisions arehandled by the carbon aggregator or abroker on behalf of the entire carbon pool.Landowners are paid when a sale is made andafter all fees and loans have been deductedfrom the gross revenue. Because forest offsetprojects sequester new carbon each year,carbon sales for a single project may take placeas frequently as every year for the duration ofthe contract. Thus, a forest offset can providean annual revenue stream for small forestowners. However, if carbon prices are low, anaggregator can also choose to wait to sell thatyear’s carbon.Monitoring and AuditingAfter the sale of the offset, the forest ownermust continue to monitor that forestland andensure that carbon remains sequestered for theduration of the contract. Monitoring reportsare required on an annual or semi-annualbasis depending on the standard. Occasionalcarbon audits by a third-party double checkthese reports.Costs and RisksDeveloping a forest carbon offset can beexpensive. Landowners are often, thoughnot always, expected to pay for the up-frontexpenses in the project development phaseincluding the carbon inventory, managementplan, and sustainable forest certification.“Projectdevelopmentrequires the helpof a professionalforester and involvesdocumentationof forest carboncharacteristics andforest managementin a Project DesignDocument .”continued on page 15WISDOM summer 2010/ 9