Investment firm eyes forest offsets

An Australian environmental firm has created a new investment fund geared towards forest carbon offset projects accepted for use in California’s carbon market.

Specifically, the firm is interested in Improved Forest Management projects, which are expected to contribute a significant number of carbon offset credits at California’s first carbon allowance auction this August.

According to market rules, regulated utilities will be able to buy carbon offsets to meet 8 percent of their compliance targets. This 8 percent comes out to a demand of over 200 million carbon offsets through 2020.

So far the Australian firm has announced two projects spanning 11,000 acres of private and tribal properties.