FOREST CARBON CREDIT PROGRAMS
Below is a summary of the current status of four Forest Carbon Credit programs that were discussed at KWOA’s annual meeting in late March. Three of these programs are not expected to be in Kentucky until later in 2023.
CORE CARBON
FAMILY FOREST CARBON
FOREST CARBON WORKS
NCX
Note: These programs are new and are undergoing rapid changes. If you plan to pursue any of the programs described above, their provisions may have changed significantly by the time you enroll. The Kentucky Woodland Owners Association has been following the progress of these programs for the benefit of members. If you have experience in dealing with forest carbon credits, we would love to hear from you. We can be reached at info@kwoa.net
CORE CARBON
- Sponsors: Finite Carbon and LandYield.
- Finite Carbon is the nation’s biggest provider of carbon offset services for larger landowners. They have developed the Core Carbon platform, www.corecarbon.com, so that smaller woodland owners can participate in carbon markets as well.
- LandYield is using the Core Carbon platform so landowners can enroll their land and generate income from carbon stored in their forests.
- Availability in Kentucky: The program is currently doing a limited launch in the southeastern U.S. and is expected to be available in Kentucky by the summer of 2023.
- Acreage Requirements: Landowners with forested acres of less than 5000 acres with a minimum of 40 acres being enrolled.
- Length of Contract: 40 years, made up of two 20-year crediting periods.
- Fees Charged to Participants: None.
- Payments to Participants: Offset prices are fixed during the first three years of the project. In the remaining years of the crediting period, LandYield will determine the market price at the time of each issuance.
- Requirements of Participants: Commercial harvests in enrolled areas are deferred for the first 20-year period of the offset project. During the second 20-year period, landowners can elect to either implement sustainable harvesting or commit to another harvest deferral and generate additional offset revenue.
- Application Process: The process is online The platform calculates a real-time quote based on remote sensing technology.
- Verification Program Used: American Carbon Registry.
FAMILY FOREST CARBON
- Sponsors: American Forest Foundation and the Nature Conservancy. The web address is www.familyforestcarbon.org.
- Availability in Kentucky: Operating in MD, PA, and WV. They expect to be available in the Appalachian region of Kentucky in the fall of 2023 and in the rest of Kentucky in another few years.
- Acreage Requirements: Minimum 30 acres.
- Length of Contract: 20 years.
- Payments to Participants: $160-$295 per acre, depending on the details of the property. Most of the payments are made in the early stages of the contract.
- Requirements of Participants: Restrict timber harvest, with some allowance for sustainable harvests. Confirmation of compliance with terms is required every five years.
- Application Process: Application is filed online to confirm eligibility, followed by a meeting with a forestry professional who walks the land. Actual enrollment follows. The forestry professional is paid by Family Forest Carbon.
- Verification Program Used: Verra.
FOREST CARBON WORKS
- Sponsor: Forest Carbon Works, a privately held company. The web address is www.forestcarbonworks.com.
- Availability in Kentucky: The program is currently available in Kentucky.
- Acreage Requirements: Minimum 40 acres.
- Length of Contract: 60 years.
- Payments to Participants: $10 per acre per year for the first 25 years, with market adjustments every 5 years. There are no payments during the following 35 years.
- Requirements of Participants: No harvests during the first 25 years. Limited harvests are permitted during the following 35 years, subject to Forest Carbon Works approval.
- Application Process: The entire process is online.
- Verification Program Used: Verra.
NCX
- Sponsor: NCX, a privately held company. The web address is www.ncx.com.
- Availability in Kentucky: The program was in operation in Kentucky in 2021 and 2022, and there will be no scheduled enrollment in 2023. In a 4/11/23 webinar NCX indicated that future programs will vary by region, and that they will be in touch with registrants if there are programs that seem to meet their indicated requirements.
- Acreage Requirements: This would vary depending on the program.
- Length of Contract: 10-40 years
- Payment to Participants: This would vary depending on the program.
- Requirements of Participants: This would vary depending on the program.
- Application Process: The entire process is on line.
- Verification Program Used: Verra has been used in the past.
Note: These programs are new and are undergoing rapid changes. If you plan to pursue any of the programs described above, their provisions may have changed significantly by the time you enroll. The Kentucky Woodland Owners Association has been following the progress of these programs for the benefit of members. If you have experience in dealing with forest carbon credits, we would love to hear from you. We can be reached at info@kwoa.net