Arguably, plants are the most common things we see in our daily lives. In fact, in recent years, we have seen many tree plantation campaigns around the globe. People often wonder whether the tree plantation campaigns could convert into carbon credits. While it may be theoretically feasible if every participant follows the methodology guideline when implementing, it often is not commercially viable.
When carbon credit methodology was first introduced, forest activities were among the first pioneer projects studied. Due to its early history, the methods established 20-30 years ago may not reflect the current condition. After public consultation and stakeholder engagement, several international standards have approved the dynamic baseline methodology when developing the project. In this article, we would like to introduce 3 quality factors buyers should consider.
#1 Biodiversity with Native Species
Trees are different even within the same region. Each tree species contributes different amounts to the local natural ecosystem. Some project developers may prefer to maximize carbon credit total amounts with monoculture activities to attract early buyers and investors. However, the quality may be questioned, and the external net benefits might be challenged after the procurement.
#2 Stakeholder Engagement with Local Community
Forest carbon credit projects are long-term commitments, often taking 20-40 years. Before starting the work, engaging with local stakeholders and learning the local culture and behaviors will reduce unnecessary social disputes. Projects that foster local employment with regular stakeholder meetings will have a better reputation. As we can see now, many registry standards have started asking project developers for relevant information, and those who fulfill certain requirements will receive additional certifications.
#3 Permanence and Risk Management
Location is essential since it determines the project area's major biophysical drivers, temperature rise, soil moisture, land cover, forest fire, and pest disease potential. Understanding the local and regional ecology will help manage the potential risks. For forest carbon credit projects, the buffer pools and the non-permanent risk discount rate are the first protection for reverse impacts. However, it is always recommended that the project be monitored with robust digital MRV practices.
Danny Chen
