220,000 Forest Carbon Credits Issued
The California Air Resources Board (ARB) issued over 220,000 carbon credits to an Improved Forest Management project located on nearly 16,000 acres of Arkansas woodlands.
Improved Forest Management (IFM) projects involve implementing new practices like extending rotation lengths and limiting harvest volumes that will increase the carbon stocks, or the number and size of trees, on the property.
Each carbon credit represents an emission reduction of 1 metric tonne of carbon dioxide equivalent (CO2e).
Improved Forest Management projects earn credits for the amount of carbon that is stored in the trees on the property in comparison to the common practice harvesting level of the surrounding area.
Businesses in California purchase carbon credits to offset their annual emissions.
Despite the demand for up to 26 million carbon credits this year, less than 5 million have been issued by the ARB so far.
The demand for the limited number of carbon credits will increase even more next year when the California market expands to cover transportation fuels and natural gas distributors, effectively doubling the current market size.
Carbon projects offer Landowners an alternative to producing traditional forest products like timber or pulpwood.
Landowners earn revenue from the sale of carbon credits, rewarding them for choosing to conserve the natural resources on their property and preserving wildlife habitat.