Forest Carbon
As interest in reducing greenhouse gas emissions to mitigate the effects of climate change increases, so does people’s willingness to pay for forest-based actions that offset or reduce CO2 emissions. Forest carbon markets provide an opportunity for these types of payments to be made. The product exchanged is called a carbon credit. One carbon credit corresponds to 1 metric ton of CO2-equivalent (CO2e) either removed from, or not put in to, the atmosphere. Forest carbon programs provide woodland owners with management options that may increase carbon uptake and storage on their land. This can generate forest carbon credits that can be sold to buyers in carbon credit markets.
For an in-depth look at forest carbon markets, please read our Extension publication: An Overview of Forest Carbon Credit Programs in Virginia.
The details of forest carbon programs change regularly. We encourage you to use the tabs below to explore the most current details for each forest carbon program offered in Virginia.
Program Characteristics |
Details |
General Program Description |
|
| Website | acre-investment.com |
| Project Type | Afforestation/reforestation. Credits created by planting trees on nonforested land. |
| Forest Type | Mixed hardwoods |
| Carbon Registry | ACR |
| Eligibility Requirements | |
| Minimum Acreage | 25 acres. Land does not have to be contiguous. |
| Ineligible if the Property has the Following Restrictions | Timber harvest restrictions, regulatory conditions (presence of threatened & endangered species, wetlands,etc.). |
| Other Eligibility Requirements | Ineligible if land was in a forested state within the past 10 years. Offers “3-year look back” on stands planted within 3 years of contract signing. No liens(i.e., mortgages). |
| Forest Management Plan | Yes |
Woodland Owner Obligations and Costs |
|
| Contract Duration | 40 years |
| Allowable Harvest | Thinning is allowed according to the forest management plan. |
| Woodland Owner Reporting | Yes |
| Out-of-pocket Expenses* | The program covers seedling/ planting costs up to$500 per acre |
| Verification | Site visit every 1-3 years (remote verification under development). |
| Obligations Transfer with Land Sale | Yes |
Woodland Owner Revenue Model |
|
| Target Market | Primarily voluntary |
| Payment Type | Two options: fixed per acre payments or percentage of carbon credit sales. |
| Payment Range | Fixed payments: $20-$40 per acre for the first 15 years of the 40-year term. From year 16 on, payment on a carbon split system. Carbon split payments based on credit sales: 50% of net revenue at market price. |
| Price Risk | Yes, for credit price option. No risk with fixed payments. |
| Production Risk | None |
| Timing of Payment | Annually for fixed payments. Every 1-2 years for carbon split, depending on volume of credits sold per year. |
| Time from Project Initiation to Payment | Fixed payment contracts: within 1 year after planting. Percentage share contracts: 18-24 months after planting. 1-12 months can pass between contract signing and planting. |
| Carbon Credit Control/Ownership | Developer |
| Other Revenue Opportunities | Hunting leases, nutrient credits, CREP, preservation tax credits. |
| * Programs that require landowners to assume upfront costs may not be legitimate programs | |
Program Characteristics |
Details |
General Program Description |
|
| Website | https://anewclimate.com |
| Project Type | Improved forest management. For existing forestland. Sustainable forest management to maintain and increase carbon uptake and storage. |
| Forest Type | Managed and unmanaged forests |
| Carbon Registry | ACR and Verra |
Eligibility Requirements |
|
| Minimum Acreage | 3,000 - 4,000 acres |
| Ineligible if the Property has the Following Restrictions | Timber harvest restrictions, regulatory conditions (presence of threatened & endangered species, wetlands,etc.). |
| Other Eligibility Requirements | If commercial harvest will occur, land must be certified by the American Tree Farm System, Forest Stewardship Council, or Sustainable Forestry Initiative. |
| Forest Management Plan | Required if commercial harvesting will occur. |
Woodland Owner Obligations and Costs |
|
| Contract Duration | Two options: • 40-year monitoring commitment with ACR and 10-year contract with Anew for voluntary markets. • 100-year monitoring commitment for compliance markets. |
| Allowable Harvest | Flexible; landowners may harvest no more than 100% of annual growth as allowed by forest carbon protocols. |
| Woodland Owner Reporting | Yes, per registry standards & protocols. |
| Out-of-pocket Expenses* | None |
| Verification | Site visit every 5 years. |
| Obligations Transfer with Land Sale | Yes |
Woodland Owner Revenue Model |
|
| Target Market | Voluntary and compliance. |
| Payment Type | Percentage of net revenue (amount varies with size and complexity of project). |
| Payment Range | Percentage of net revenues depending on the property & carbon credit market price. |
| Price Risk | Some |
| Production Risk | None |
| Timing of Payment | When credits are sold. |
| Time from Project Initiation to Payment | Fixed payment contracts: within 1 year after planting. Percentage share contracts: 18-24 months Approximately 2 years. |
| Carbon Credit Control/Ownership | Developer |
| Other Revenue Opportunities | Hunting leases and miscellaneous practices, such as nontimber forest products. |
| * Programs that require landowners to assume upfront costs may not be legitimate programs | |
Program Characteristics |
Details |
General Program Description |
|
| Website | https://familyforestcarbon.org |
| Project Type | Improved forest management. For existing forestland. Restrictions on forest harvesting. Harvest deferral to increase carbon storage. |
| Forest Type | Mixed hardwoods |
| Carbon Registry | Verra |
| Eligibility Requirements | |
| Minimum Acreage | 30 contiguous acres |
| Ineligible if the Property has the Following Restrictions | Timber harvest restrictions, regulatory conditions (presence of threatened & endangered species, wetlands, etc.). Tree plantations are ineligible. Degraded forests or forests with undesirable timber species/volumemay not qualify. |
| Other Eligibility Requirements | Minimum 2,000 board feet per acre of timber on parcel. Evidence of markets for timber. No participation in previous carbon programs. Enrolling all acreage is not necessary. |
| Forest Management Plan | Yes. Either a free forest management plan template is provided by the program (to be used by the landowner’s forester) or the program can help the landowner apply for funding for a third-party detailed plan. |
Woodland Owner Obligations and Costs |
|
| Contract Duration | 20 years. |
| Allowable Harvest | Limited harvest: 25% of basal area within designated harvest area, and QMD is not reduced by more than 10%. Qualified forester needed for pre and post-harvest reporting. |
| Woodland Owner Reporting | Yes |
| Out-of-pocket Expenses* | None |
| Verification | Landowner documentation every 5 years. Regular verification of monitoring plots if selected. |
| Obligations Transfer with Land Sale | Yes |
Woodland Owner Revenue Model |
|
| Target Market | Voluntary |
| Payment Type | 20% upfront plus payments per acre per year over 20 years. |
| Payment Range | $200-$300 per acre total over 20 years. |
| Price Risk | None |
| Production Risk | None |
| Timing of Payment | 20% of the total received upfront; annual payments over the following 20 years, with an increasing percentage over 5-year periods. |
| Time from Project Initiation to Payment | 30 to 60 days. |
| Carbon Credit Control/Ownership | Developer |
| Other Revenue Opportunities | Hunting leases. Compatible with most cost-share programs. |
| * Programs that require landowners to assume upfront costs may not be legitimate programs | |
Program Characteristics |
Details |
General Program Description |
|
| Website | https://forestcarbonworks.org |
| Project Type | Improved forest management (IFM) through extension of rotation age (Verra VM0003 methodology). For existing forestland. |
| Forest Type | All |
| Carbon Registry | Verra |
| Eligibility Requirements | |
| Minimum Acreage | 40 acres |
| Ineligible if the Property has the Following Restrictions | Restrictive conservation easements that limit harvesting. |
| Other Eligibility Requirements | Privately owned lands. Must own timber rights. Participation in previous carbon programs may be allowed. Must enroll all owned forestland. Must disclose commercial harvests in the previous 10 years. |
| Forest Management Plan | If commercial harvests occur during crediting period, land must be certified by the Forest Stewardship Council (at no cost to landowner). FCW may assist with forest management plan. |
Woodland Owner Obligations and Costs |
|
| Contract Duration | Minimum of 60 years broken between a 25-year payment period, followed by a 35- year monitoring period. The payment period may be extended in 5-year increments (allow for price and inventory adjustments) up to 50 years. |
| Allowable Harvest | 10% of merchantable timber reserved for climate smart forestry practices. Harvests exceeding this amount may incur a harvest offset fee. Fewer restrictions during legacy period (after 25years). |
| Woodland Owner Reporting | Annual online survey on the condition of the forest. |
| Out-of-pocket Expenses* | None |
| Verification | All enrolled properties receive on-ground inventory and third party verification. |
| Obligations Transfer with Land Sale | Yes |
Woodland Owner Revenue Model |
|
| Target Market | Voluntary |
| Payment Type | Two options: annual flat rate per acre payment or revenue share depending on acreage. |
| Payment Range | Variable: starts at approximately $10 per acre per year, higher for large acreage or highly productive lands. No payments after 25 years (during the monitoring period). |
| Price Risk | Minimal within a contract period. |
| Production Risk | None |
| Timing of Payment | Annual payments start with the signing of contract. |
| Time from Project Initiation to Payment | Within 30 days. |
| Carbon Credit Control/Ownership | Developer |
| Other Revenue Opportunities | Hunting leases, recreational opportunities. |
| * Programs that require landowners to assume upfront costs may not be legitimate programs | |
Program Characteristics |
Details |
General Program Description |
|
| Website | https://landyield.com |
| Project Type | Improved forest management. For existing forestland. Restrictions on harvesting (harvest deferral). |
| Forest Type | Commercial timberland (hardwoods &softwoods). |
| Carbon Registry | ACR |
Eligibility Requirements |
|
| Minimum Acreage | 40-5,000 acres for lands under a single owner. |
| Ineligible if the Property has the Following Restrictions | Timber harvest restrictions, regulatory conditions (presence of threatened & endangered species, wetlands,etc.). |
| Other Eligibility Requirements | Timber harvest restrictions, regulatory conditions (presence of threatened & endangered species, wetlands,etc.). |
| Forest Management Plan | Required if commercial harvesting will occur on other land owned but not enrolled in the program. |
Woodland Owner Obligations and Costs |
|
| Contract Duration | 40 years: No harvest for the first 20 years; 40 years of monitoring. Option for second forest deferral and additional payments after initial 20-year period. |
| Allowable Harvest | Commercial harvest allowed after 20 years. Some noncommercial thinning and prescribed burning allowed in the first 20 years. |
| Woodland Owner Reporting | Landowner must submit quarterly attestations |
| Out-of-pocket Expenses* | None |
| Verification | Remote verification with potential site visits. |
| Obligations Transfer with Land Sale | Yes |
Woodland Owner Revenue Model |
|
| Target Market | Voluntary |
| Payment Type | Quarterly payments. Fixed price for the first 3 years; percentage share of credit prices in the remaining 17 years. |
| Payment Range | Landowners could earn $30-$40 per acre per year (December 2023). |
| Price Risk | Yes, with revenue sharing. |
| Production Risk | None |
| Timing of Payment | Quarterly payments for the first 20 years. |
| Time from Project Initiation to Payment | One to three months. |
| Carbon Credit Control/Ownership | Developer |
| Other Revenue Opportunities | Hunting leases and miscellaneous practices, such as nontimber forest products. |
| * Programs that require landowners to assume upfront costs may not be legitimate programs | |