Landowners interested in carbon offsets often have numerous questions about how these programs work and their benefits. As the transition to more sustainable practices becomes a priority, understanding carbon offsets and their role in mitigating climate change is essential. This resource addresses the frequently asked questions from landowners regarding carbon offset projects.
What are Carbon Offsets?
Carbon offsetting is a carbon trading mechanism that allows individuals and organizations to compensate for their greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions elsewhere in the world. These projects can include renewable energy initiatives, reforestation efforts, and energy efficiency improvements. By supporting such projects, entities can effectively balance out their own carbon footprint, contributing to a more sustainable and environmentally conscious future. This approach is becoming increasingly important as global awareness of climate change rises and the demand for sustainable practices grows.
What is Carbon Storage?
Carbon storage is the process of capturing carbon dioxide from the atmosphere to reduce its presence in the atmosphere. You may also see carbon storage referred to as carbon sequestration, carbon capture and storage, CO2 storage, or carbon offsets.
How does Carbon Storage Work?
Land naturally captures carbon dioxide from the atmosphere through plant vegetation (photosynthesis) and geologic processes. As a result of incentives introduced in the 2022 Inflation Reduction Act, companies and entities that emit carbon dioxide into the atmosphere are encouraged to offset their carbon dioxide emissions by purchasing carbon credits. Since your land is naturally capturing carbon dioxide, you could be earning carbon credits that companies want to buy to offset their carbon emissions.
Where Can CO2 Be Stored on My Land?
Carbon can be stored in your soil, trees, or underground. Trees sequester large amounts of carbon, making them the most valuable for carbon offsets. However, there are carbon programs available for agricultural land as well.
What Type of Land Stores the Most Carbon?
For biological carbon capturing, the amount of vegetation growth (photosynthesis) that takes place on your property determines how much carbon dioxide is being removed from the atmosphere. For example, different tree types and soil types sequester different amounts of carbon, which affects how much landowners can get paid for their carbon credits. Land that is in areas with dense, mature tree stands and locations with soils containing high percentages of organic carbon captures relatively high amounts of carbon dioxide (for example, the temperate rainforests in the Pacific Northwest are the best place for carbon storage in the US). However, both forested areas and farmland can capture relatively high amounts of carbon dioxide. Areas that are located in dry, arid regions with little to no vegetation capture relatively low amounts of carbon dioxide.
What is the Difference Between Carbon Offsets and Carbon Credits?
Carbon offsets serve as a unit of measure to "compensate" businesses investing in eco-friendly projects or initiatives, whether natural or technological, that reduce emissions. On the other hand, carbon credits are used to "cap" emissions, indicating the allowable amount of emissions.
What are the Benefits of Carbon Storage on my Land?
The benefits of carbon storage on land include income generation, retaining use of your land for other purposes, and contributing to the fight against climate change.
Make extra income off of your land when you sell carbon credits from the carbon that your land is sequestering
Retain surface use of your land to combine with other income sources including farming, running cattle, recreation, and solar or wind leases
Regenerative Agricultural practices can make your land even more productive while allowing you to benefit financially from the sale of carbon credits
Positively impact the environment and contribute to green initiatives without making any significant changes to your land
Can I Still Use my Land While it is Capturing Carbon?
Implications on land use during carbon leases vary. Typically, landowners can still use the surface of their land during carbon sequestration agreements. While surface use must adhere to specific terms in order to certify your carbon credits, you will still be able to run cattle, farm, and recreate while your land is storing carbon dioxide. Subsurface carbon storage takes place underground so it does not impede the use of the surface.
Can I Still Lease my Land for Additional Income While it is Storing Carbon?
Below ground carbon storage does not impact surface uses. Carbon stored in trees or soil may limit the types of development possible on your land. Restrictions on harvesting timber, development, and additional activities on the land may exist depending on the agreement.
How Can I Sell Carbon Offsets From my Land?
Landowners can list their land for lease for carbon offsets for free on LandGate's online marketplace for exposure to high-intent carbon developers and investors. It starts by finding your land on LandGate's map to generate your free property Report, which will provide you with carbon credit estimates specific to your property:
