Finite Carbon and LandYield are effectively revolutionising the voluntary carbon market (VCM) through an innovative partnership, overcoming barriers and opening up new opportunities for small (hereinafter referred to as family) forest owners to benefit from carbon credits.
Finite Carbon is a North American forest carbon offset developer; the British Petroleum group acquired a majority stake in Finite Carbon back in 2020 for an undisclosed sum. The company has developed high-quality carbon projects on more than 3.9 million acres (1.58 million ha) of forest land.
Meanwhile, the recently established Tennessee-based start-up LandYield aims to provide family forest owners with access to carbon markets. The company's intention is to give owners of small forest properties the opportunity to earn an income while preserving their forests, increasing carbon sequestration and the value of their woodland.
Their combined experience will simplify carbon income opportunities for non-industrial landowners. Plans are to begin operations in 13 US Southeastern states. Together, they have already established the CORE Carbon platform for landowners to register effectively for a carbon offset programme.
Verified forest carbon credit platform
Family or non-industrial forest landowners in the USA own approximately 275 million acres (11.13 million ha) of forest land; less than 1% of owners are benefiting from the carbon market.
The new platform aims to increase this proportion, allowing owners with 40-5000 acres (16-2023 ha) of forest land to earn additional income from carbon credits, also known as carbon offsets. Those eligible to participate in the programme can already register.
Two main features of the programme:
Flexibility: landowners can decide to include only part of their land in the programme. Commercial activity can continue on the registered land, such as harvesting non-timber products and leasing hunting rights on the property.
Financial benefits: landowners will receive quarterly compensation in the form of carbon credits if they meet the programme's reporting and monitoring requirements. The CORE Carbon platform manages and simplifies this process using a dashboard.
Using Finite Carbon's experience in software and remote sensing, the CORE Carbon platform features an improved, easy-to-use digital mapping tool for landowners, helping them develop a free carbon income offer for their forest land while ensuring ongoing project management.
The programme uses satellite imagery and US Forest Service data to track forest growth. This information is crucial for accurately determining how many carbon emissions are reduced and how much is sequestered thanks to improved forest management practices on the registered forest land.
Precise monitoring and reporting of carbon stocks is essential for obtaining verifiable and quantifiable carbon credits.
Carbon offset projects are verified according to the American Carbon Registry's scientific methodology – Improved Forest Management for Small Non-Industrial Private Forestlands (SNIPFL) – which is designed specifically for family-owned forests.
Ensuring high-quality forest carbon offsets, which fall into the category of nature-based solutions, is even more important today, as criticism directed at them is becoming increasingly strong.
The launch of the CORE Carbon platform has come at the right time. It can help resolve issues related to producing high-quality forest offsets, which may drive prices up again.
Overcoming barriers that hinder financial and climate benefits
To do what is necessary, Finite Carbon has secured forest carbon transactions worth more than 900 million USD. Forest land investment firms, conservation groups and foresters are all involved in these projects.
The company's partnership with LandYield in the carbon programme is another important milestone. Finite Carbon CEO Sean Carney, highlighting its significance, explains: “We are pleased to partner with LandYield to build mutually beneficial long-term relationships with a broad range of landowners, providing a financial incentive for environmental conservation so that people have the opportunity to pass biologically valuable land on to future generations.”
LandYield provides payments to registered landowners who postpone timber harvesting and improve their land's carbon sequestration capacity.
By committing to significant changes in forest management, landowners also promote long-term benefits for the climate. The 40-year commitment includes growing forests for 20 years and conserving them for 20 years.
The LandYield platform allows landowners to provide estimates of how much income they could potentially earn from carbon credits. LandYield is supported by the Mercuria Energy Group, one of the world's largest independent energy and commodity groups, which plans to purchase the credits generated. Mercuria plans to use forest carbon credits to neutralise emissions generated by the group's companies that use fossil fuels. The remaining portion of the credits is planned to be sold to other companies wishing to reduce their carbon emissions.
Initially, the carbon programme will be open to landowners in the Southeastern United States, where families own ~120 million acres of forest land. This region includes Florida, Georgia, South Carolina, North Carolina, Virginia, Tennessee, Kentucky, Alabama, Mississippi, Arkansas, Louisiana, Texas and Oklahoma. As the programme expands, it will also cover other regions of the country.
In 2022, a similar programme – the Family Forest Carbon Program – was started by the American Forest Foundation; its goal is to help family forest owners who own, for example, 30 acres (12 ha), access the 2 billion USD carbon market.
By eliminating barriers and offering financial incentives for environmental conservation, Finite Carbon and LandYield have taken a significant step in promoting nature-based solutions and sustainable forest management. This initiative is a win-win solution for both landowners and the planet, promoting a greener future for the next generations.
https://carboncredits.com/breaking-barriers-giving-family-forest-landowners-more-access-to-carbon-markets/