Carbon Credit Questions

Carbon Credit Questions

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What are carbon credits?

Carbon credits are measurable, verifiable emission reductions from projects that reduce, remove or avoid greenhouse gas (GHG) emissions. Landowners can receive carbon credits relative to the amount of carbon stored on their land and therefore removed from our atmosphere. Carbon credits are purchased by investors that emit carbon in order to offset this carbon as mandated by government regulations.

What are verified carbon credits?

Your carbon credits need to be verified in order to be attractive to buyers looking to offset their carbon emissions. Carbon credit verification takes place in line with nationally recognized carbon standards, such as the Verified Carbon Standard (VCS) or Climate Action Reserve (CAR), which are drawn up by independent third-party bodies.

How much could I make selling carbon credits for carbon offsets on my land?

The value of your land for carbon offsets will depend on many factors including the acreage, climate, tree coverage, soil types, surface activity, and more. LandGate has combined these factors to present you with a carbon land value, or an approximation of what your land could be worth in carbon credits through carbon offsets.

How do I get paid for carbon credits on my land?

You would be paid for carbon credits on your land based on the amount of carbon dioxide your specific parcel of land captures. Companies will make offers to purchase or lease your carbon credits for an allotted period of time and you will be paid on a regular basis dependent on the individual contract or carbon storage lease you sign with the purchaser.

What are the types of carbon credits that landowners can potentially lease?

The types of carbon credits potentially available are:

  • Verified Carbon Units
  • California Carbon Offsets
  • Regional Greenhouse Gas Initiative (RGGI) Allowances
  • American Carbon Registry (ACR)
  • Climate Reserve Tonnes (CRTs)
  • Carbon Offsets
  • Carbon Harvest Deferrals

What are Carbon Harvest Deferrals?

Carbon harvest deferrals are a land management approach that involves postponing the harvesting of forest products to enhance carbon storage in the forest and reduce atmospheric carbon dioxide levels. This strategy can be applied to public and private lands and is commonly utilized as a carbon offset solution, allowing companies to compensate for their carbon emissions by supporting projects that sequester carbon in forests.

Companies pay landowners to delay harvesting and sustain the forest, receiving carbon credits in return. Apart from carbon sequestration, these deferrals offer additional environmental benefits such as biodiversity protection, soil preservation, and safeguarding water resources. Nonetheless, there can be economic consequences for landowners who experience delayed income from timber harvesting.

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