A side-by-side comparison of forest carbon programs from NCX, Finite's CoreCarbon, and American Forest Foundation
Source: National Capital Exchange
Source: National Capital Exchange
More information on these programs is available from NCX at:
https://blog.ncx.com/a-forest-carbon-program-that-matches-your-familys-management
Forest Carbon Credit Programs - Part 3
Submitted by Jack Rentz
Parts 1 and 2 of this report were included in the spring and summer issues of Kentucky Woodlands Newsletter, and they can be found at www.kwoa.net.
For years there have been programs that provide financial incentives for woodland owners to manage their properties in an environmentally responsible manner, but the heavy upfront costs and ongoing expenses of complying with the conditions of these programs have made them feasible only for landowners with 3000 acres or more. Three new programs have been developed as attempts to make carbon programs economical for smaller landowners. Basic information for these programs is provided below. The deadline for registration with Natural Capital Exchange is December 1, 2021. The Core Carbon and Family Forest Carbon programs will not be available in Kentucky until 2022 and 2023.
NATURAL CAPITAL EXCHANGE
For additional detail on the Natural Capital Exchange program, please see Forest Carbon Credits Part 2 in the summer 2021 issue of Kentucky Woodlands Newsletter at www.kwoa.net.
CORE CARBON
FAMILY FOREST CARBON
Two programs are provided:
1) Growing Mature Forests, intended for long term management of existing timber stands
2) Enhancing the Future Forest, intended for use after a regeneration harvest
The following applies to both programs:
Because these programs are new and frequently changing, our review for the benefit of woodland owners is a work in process. If any readers have information or knowledge about forest carbon programs they are willing to share, please contact us at [email protected].
Updates and additional information can be found on the KWOA website at https://www.kwoa.net/events and https://www.kwoa.net/practices .
Parts 1 and 2 of this report were included in the spring and summer issues of Kentucky Woodlands Newsletter, and they can be found at www.kwoa.net.
For years there have been programs that provide financial incentives for woodland owners to manage their properties in an environmentally responsible manner, but the heavy upfront costs and ongoing expenses of complying with the conditions of these programs have made them feasible only for landowners with 3000 acres or more. Three new programs have been developed as attempts to make carbon programs economical for smaller landowners. Basic information for these programs is provided below. The deadline for registration with Natural Capital Exchange is December 1, 2021. The Core Carbon and Family Forest Carbon programs will not be available in Kentucky until 2022 and 2023.
NATURAL CAPITAL EXCHANGE
- Sponsor: NCX, a privately held corporation. The web address is www.ncx.com.
- Availability in Kentucky: The deadline for registration is December 1, 2021.
- Acreage Requirement: No minimum or maximum
- Length of Contract: One year
- Fees /Charges to Participants: None
- Payments to Participants: Payments depend on variables such as age/class distribution, species mix, density and volume. A current estimated range is $5 to $30 per acre.
- Requirements of Participants: Defer timber harvest for one year
- Application Process: Participants establish an account with NCX and identify the boundaries of their properties on line. Based on this input NCX does a satellite evaluation of timber on the property. Next NCX provides participants with a carbon volume eligibility report. The participant then submits a bid specifying the price at which they are willing to defer a harvest for a year. If the bid is accepted, the participant is paid at the end of the one year harvest deferral, assuming the conditions of the contract have been met.
For additional detail on the Natural Capital Exchange program, please see Forest Carbon Credits Part 2 in the summer 2021 issue of Kentucky Woodlands Newsletter at www.kwoa.net.
CORE CARBON
- Sponsor: Finite Carbon, whose majority shareholder is the energy company BP. The web address is www.finitecarbon.com. Finite Carbon is the country’s biggest provider of carbon offset services for larger landowners. They are developing their Core Carbon program for smaller woodland owners.
- Availability in Kentucky: The program is expected to be introduced in southeastern U.S. in the near future and is projected to be available in Kentucky in mid 2022.
- Acreage Requirement: 40-5000 forested acres
- Length of Contract: 20 years
- Fees Charged to Participants: None
- Payments to Participants: Information not yet available
- Requirements of Participants: 20 year deferral of timber harvest
- Application Process: The application is done on line and the core carbon timber evaluation is done by satellite.
FAMILY FOREST CARBON
- Sponsors: American Forest Foundation and the Nature Conservancy. The web address is www.familyforestcarbon.org.
- Availability in Kentucky: The program is in operation in Pennsylvania. The plan is to make it available in other states with the expectation that it will be available in Kentucky in 2023.
Two programs are provided:
1) Growing Mature Forests, intended for long term management of existing timber stands
- Length of Contract: 20 years
- Payments to Participants: $100-$230 per acre depending on circumstances
- Requirements of Participants: Develop and adhere to two 10 year forest management plans. Timber harvests cannot exceed 25% of basal area.
2) Enhancing the Future Forest, intended for use after a regeneration harvest
- Length of Contract: 10 years
- Payments to Participants: $50-$280 per acre depending on circumstances
- Requirements of Participants: Reduce competing vegetation by at least 85% of pre-treatment level and maintain this level throughout the contract period.
The following applies to both programs:
- Acreage Requirement: 30-2400 forested acres
- Fees Charged to Participants: None, but participants must pay for preparation of their forest management plan.
- Application Process: Application is submitted on line through the use of the WoodsCamp program. This is after discussion with Family Forest Carbon staff.
Because these programs are new and frequently changing, our review for the benefit of woodland owners is a work in process. If any readers have information or knowledge about forest carbon programs they are willing to share, please contact us at [email protected].
Updates and additional information can be found on the KWOA website at https://www.kwoa.net/events and https://www.kwoa.net/practices .