Forest Carbon Offsets: A Key to Climate Action

Written by: Priyakshi Sarma

Did you know that our planet has naturally occurring carbon sinks? A carbon sink is anything that can absorb and store carbon, including oceans and forests. Forests absorb carbon dioxide from the atmosphere through photosynthesis and store it in trees, vegetation, and soil.

However, deforestation and other disturbances can release the stored carbon in forests back into the atmosphere. In such cases, forests act as a source of carbon. It is estimated that the world’s forests can absorb 16 billion metric tonnes of carbon dioxide per year, and emit an average of 8.1 billion metric tonnes of carbon dioxide back into the atmosphere.

As forests can capture and store carbon from the atmosphere, forest carbon offsets can be a promising solution for combating climate change.?

This article delves into the introduction of forest carbon offsets, their role in tackling climate change, and the various benefits and challenges they present.?

Forest carbon offsets

With forest carbon offsets, companies have the option to pay for planting trees in areas that were not previously forested and protecting existing forests. Once the owner (government/private landowners) and the buyer (companies) close the deal, the forest area becomes a “carbon credit project”.?

Thus, companies buy offsets (carbon credits) to compensate for their carbon emissions occurring elsewhere.?

In a forest ecosystem, carbon is stored in living and dead trees and plants, litter, etc. (aboveground) and in living and dead roots, fungi, invertebrate animals, organic matter in the soil, etc. (belowground). Trees are an excellent carbon sink, absorbing carbon dioxide from the atmosphere through photosynthesis. Tree rings, which represent a tree’s annual growth, are made of carbon that was once in the atmosphere. Approximately 50% of the dry weight of woody plants, like trees, are made of pure carbon.?

There are different types of forest carbon offset projects that can help sequester carbon from the atmosphere.

Types of forest carbon offsets

Three main project types qualify to generate carbon offsets, categorized based on the activities involved in capturing carbon from the atmosphere:

• Afforestation/Reforestation: Afforestation involves planting trees on land that has not previously been forested. It establishes new forests that can sequester or capture carbon as they grow and improve biodiversity.

Reforestation, on the other hand, involves planting trees on land that was previously forested but has been destroyed or damaged by activities like agriculture and mining. It helps restore ecosystems, increase carbon capture and storage, and enhance biodiversity.

However, these activities require significant investments in land preparation, tree planting, innovation and technology, and maintenance.

• Avoided conversion: These projects, also known as REDD+ (Reducing Emissions from Deforestation and Degradation), aim to prevent the transformation of forested areas into non-forested landscapes. By protecting the forested areas, the release of carbon stored in the forests is prevented, biodiversity is protected, and economic and social benefits are provided to the local communities by involving them in the projects.

To be eligible for such projects, developers must provide evidence that the land will face conversion in the immediate future.

• Improved forest management (IFM): This involves forest management practices that increase the carbon storage capacity of forests, including activities like reducing forest degradation, selective logging, and improving silviculture practices. These practices help enhance forest health, improve the quality of forest products, and increase the amount of carbon stored in forests.

IFM project developers must demonstrate that their forest management activities capture more carbon than business-as-usual forestry practices.

Carbon credit registries are independent registries that register different carbon offset projects and their eligibility criteria and also track them. Each carbon credit registry has its own protocol for forest carbon accounting.

Environmental and social benefits of forest carbon offset projects

• Mitigating climate change: Forest carbon offset projects enhance the ability of forests to sequester and store carbon, thus reducing the atmospheric carbon levels. This helps combat global warming and mitigate climate change. Carbon credits generated from these projects contribute to global efforts to achieve carbon neutrality.
• Biodiversity conservation: These projects help restore and preserve habitats for plants and animals, thus contributing to biodiversity conservation.
• Social and economic benefits: By providing employment opportunities and empowering communities through skill development, forest carbon projects contribute to the social and economic well-being of the local communities. They also provide direct economic incentives to communities for maintaining forests by selling carbon credits.

Thus forest carbon projects address climate change and help to eradicate poverty by supporting the well-being of local populations.

Challenges

Despite their many benefits, these projects require substantial investment. Additionally, there is difficulty verifying their environmental benefits. Evidence shows that carbon offsets often promise more emission reductions than they achieve. Often, buyers and sellers of carbon projects never meet, making it unclear who buys offset and how much funding goes to which projects. Persistent deforestation, pest outbreaks, increased wildfire risk, changing weather patterns, and illegal mining also pose challenges to the success of these projects.

Addressing these challenges can help build trust in such projects and their environmental and social benefits.

Future opportunities

Since the Paris Agreement, more companies have been setting net-zero and carbon-neutral goals, increasing the demand for forest carbon offset projects. Technological advancements such as blockchain, remote sensing, satellite imagery, MRV tools, and data analytics help accuracy, transparency, and efficiency in monitoring and verifying carbon sequestration in forests. Increased collaboration between government, the private sector, and local communities can scale up forest carbon projects. Public awareness about the benefits and challenges of carbon offset projects can drive greater participation in offset markets.?

Conclusion

The future of carbon offset projects is promising in the efforts to combat climate change. By overcoming challenges, forest carbon projects can be a ray of hope for a more sustainable and resilient planet.