Cultreevate

FAQs

Carbon offsets (sometimes broadly referred to as ‘carbon credits’) serve as crucial instruments in combating climate change, the purchase of which enables individuals and companies to support initiatives that mitigate against their greenhouse gas emissions.

In the voluntary carbon market, these offsets symbolize a quantifiable reduction in CO2 or other greenhouse gas emissions achieved through projects that have been scientifically evaluated and verified by independent carbon registries, either by preventing their release into the atmosphere or by actively removing them. One offset represents the removal or reduction of one tonne of CO2 emissions (tCO2e) over a 12-month period, providing individuals and companies with a trade-off for the emissions they generate. Companies can achieve “net zero” emissions when the amount of greenhouse gases they add through their activities, often after extensive carbon footprint reduction efforts, are matched by the amount they remove.

Nature-based solutions for reducing carbon emissions and/or removing carbon from the atmosphere remain some of the most potent greenhouse gas mitigation methods available. Among nature-based solutions, the growth and conservation of forestlands and their biodiverse habitats remains the most effective and with potential for the highest impact. At the heart of the concept of carbon offsets certified from forestlands lies the essential role of trees in carbon sequestration. Through photosynthesis, trees naturally absorb carbon dioxide from the atmosphere, storing it in their trunks, leaves, roots, and surrounding soil.

‘Carbon removal’ means taking carbon dioxide out of the atmosphere through natural, chemical or mechanical methods and storing it for a long period of time.

‘Carbon reduction or avoidance’ involves stopping the actions that cause carbon dioxide to be emitted into the atmosphere. This includes actions such as avoiding deforestation, developing and using of renewable energy sources and encouraging people to use less carbon-intensive cooking methods.

In the voluntary carbon market, carbon reduction/avoidance projects are aimed at reducing or preventing the release of carbon dioxide into the atmosphere and such registered projects generate carbon reduction/avoidance offsets, whereas registered carbon removal projects whose aim is to remove and store carbon dioxide, are generate carbon removal offsets.

Removal and avoidance are essentially two methods for reducing the level of atmospheric carbon. Carbon emissions can be avoided, for instance, by protecting forests, or they can be removed by artificially or naturally sequestering carbon from the atmosphere (such as allowing trees to capture it during photosynthesis).

It is important that quality carbon avoidance projects continue to be regarded as an essential tool against climate change; it is important we protect stored carbon stocks and not risk these being released and added to the carbon in the atmosphere, running against the efforts of carbon removal projects. Projects classified as carbon removal activity sequester carbon from the atmosphere and often achieve more prominent headlines, however these only address one part of the current battle against catastrophic climate change.

Improved Forest Management (IFM) projects aim to protect forests and prevent carbon release into the atmosphere by limiting forest harvesting activities. Additionally, these projects facilitate the sequestration of atmospheric carbon through the growth of unharvested trees. Therefore, forests involved in IFM projects typically contribute both avoidance and removal activities based on their natural attributes, such as species, age, and other biological characteristics.

Forests are significant carbon sinks, actively absorbing and storing carbon dioxide from the atmosphere as they grow. The level of carbon dioxide in the atmosphere is already 50 per cent higher than before the industrial revolution and has been steadily rising in recent years.

The Intergovernmental Panel on Climate Change’s conclusions to prevent the most catastrophic effects of climate change are clear: “all pathways that limit global warming to 1.5C with limited or no overshoot” require carbon dioxide removal at a massive scale, between 100bn and 1,000bn tonnes this century (note that total emissions of all greenhouse gases in 2022 were 53.8bn tonnes of CO₂ equivalent). Analogous to a bathtub, we have an urgent need to reduce the amount of water flowing into the tub as well as drilling holes at the bottom to slow the rise of the water level, with the aim of eventually bring it down.

Forest carbon project-based offsets represent the power of photosynthesis to naturally capture and sequester carbon dioxide, using trees as natural agents for carbon capture and storage.

The voluntary carbon market provides a mechanism to measure and incentivize reductions in emissions and to increase the quantity of carbon stored in forest estates.

Forestry-based carbon offsets are a promising strategy in mitigating the effects of climate change, as they involve protecting forests, including their natural biodiverse habitats, to enhance carbon capture and storage. This holistic approach not only mitigates against carbon emissions, thereby benefiting the environment, but also provides economic opportunities for forest owners as an alternative to harvesting trees for wood or clearing forestland for other commercial uses.

Improved Forest Management projects are based on forestry practices that result in increased carbon stocks within forests or decreased greenhouse gas emissions caused by forestry operations - compared to standard forestry practices. Cultreevate focuses heavily on the development, implementation and distribution of IFM projects.

Forest carbon projects play a vital role in biodiversity conservation by preserving and restoring habitats for a wide array of forest dwelling plant and animal species. Healthy forests play a crucial role in providing general ecosystem functions, like water filtration and soil enrichment. Furthermore, carbon offset projects can significantly contribute to biodiversity conservation by safeguarding forest habitats. Establishing protected forest areas is an important strategy for conserving forest biodiversity.

Forest carbon projects offer an important alternative economic opoortunity for forest owners who would otherwise exploit their forests for timber or other commercial land-use opportunities, enabling them to generate revenue through the sale of project-certified carbon offsets while simultaneously contributing to global climate change mitigation efforts.

Through forest carbon projects, commercial forests are moved to protected and preserved status so that they can continue to sequester carbon from the atmosphere, while the forest owners are compensated in return through the sale of resulting carbon credits..

The carbon offsets/credits received by the forest owners are marketable commodities, accessible for purchase by corporations, governments and individuals aiming to offset their own carbon emissions. Some further potential benefits to forest owners:

  • Diversification of Revenue Streams: A carbon offset project provides the forest owner with an additional source of income beyond traditional forestry activities such as timber harvesting or land leasing – which can be an effective hedge against fluctuations in demand for timber products, for example.

  • Risk Mitigation: Carbon offset projects can help mitigate financial risks associated with external factors such as climate change impacts, market volatility, or regulatory changes.

  • Enhanced Land Value: Participation in carbon offset projects can increase the overall value of forested lands, including by demonstrating environmental stewardship and sustainability. Forest owners may benefit from higher land prices or premiums associated with certified forest carbon project lands.

Forest landowners owning commercial forests can halt traditional commercial operations and switch to an improved forest management (IFM) system to maximize the quantity of carbon that can be stored in forest biomass over a certifiable period of time - through which they can become suppliers of IFM carbon offsets in the voluntary carbon market.

In order for a forest carbon project to be certified and for resulting carbon offsets to be made available for retirement, a project must be approved by one of a handful of globally recognised independent registries that specialize in the creation of carbon removal methodologies; a registry will certify that a project has been implemented in accordance with the relevant published methodology.

Following project development, the project undergoes validation and verification processes to authenticate the carbon offsets that are purported to be generated. This involves collaboration with key entities: invariably a third-party scientific auditor and sometimes a third-party rating agency.

The VCS Program, realized by Verra, stands as the most widely internationally- recognized certification program for carbon projects. Carbon projects certified through Verra’s VCS Program result in the generation of tradeable carbon offsets (or ‘credits’) that represent emission reductions/avoidances or removals as the case may be.

Once approved, the credit can be sold. Later on, the same registry checks if the promised carbon mitigation activity has actually happened.

Based on verified carbon accounting, carbon offsets are issued to the project developers or owners. Each carbon offset represents one metric ton of CO2 equivalent that has been sequestered or avoided over a 12-month period.

Forest carbon credits are often sought after by companies, governments, and individuals looking to offset their carbon footprint or to demonstrate environmental stewardship. Once purchased and retired by an end user seeking to offset their carbon emissions, the carbon offsets are permanently removed from circulation.

As with other commodities, there’s no single price for a carbon credit. 

The value of forest carbon credits can vary based on factors such as project location, project quality, issuance year, additional benefits (co-benefits) and market demand.Prices can also fluctuate depending on supply and demand dynamics, regulatory developments and broader trends in climate policy and environmental awareness.

The only general valid guideline is that quality credits from impactful, high-integrity projects are attracting higher demand and are selling at relatively higher prices.

Forest carbon credits differ from other carbon offsetting methods in several key ways,
particularly regarding their impact on biodiversity:

  • Forest carbon projects principally focus on sequestering carbon dioxide (CO2) through forest conservation activities. Trees naturally absorb CO2 from the atmosphere during photosynthesis, storing it in biomass and soil organic matter.

  • Unlike other carbon offsetting methods, forest carbon projects can provide co-benefits for biodiversity conservation. Forests are home to a diverse array of plant and animal species.

Cultreevate collaborates closely with partner organisations throughout every stage of a forest carbon project, from initial feasibility studies to implementation, validation and verification with the chosen carbon registry, the marketing and sale of resulting carbon offsets and continuous monitoring following certification.

Forest carbon offset projects offer various benefits to forest owners, but they also come
with potential risks and challenges, including:

  • Market uncertainty: Carbon markets can be volatile, with fluctuating prices influenced by uncontrollable factors such as regulatory changes, market demand and the availability of alternative offsetting options.

  • Project implementation costs: Establishing and maintaining a forest carbon offset project requires upfront investment in activities such as carbon project implementation, accounting, monitoring, reporting, and verification.

  • Project risks and uncertainties: Forest carbon projects are subject to various risks and uncertainties, including natural disturbances (e.g., wildfires, storms, pests or disease), land-use changes, and the resulting potential for reversals in carbon stocks.