The Consultant - 2018 - 23

CARBON OFFSETS

Robert Bradbury, ACF,
and Adam Trenholm
of LandVest on the
Massachusetts
Audubon IFM Carbon
Project site verification.

transportation and fuel refineries, as is the case with the state
of California. Second, the potential carbon volume that may be
monetized from a forest is a function of a complex set of rules
that defines the "additional" (rather than the total) amount of
carbon in a forest over a baseline scenario.
Whether in the voluntary or compliance offset market, a forest
carbon offset is created when a landowner's voluntary action
results in the sequestration or the prevention of carbon dioxide
from being released into the atmosphere. This additional carbon
volume, which is quantified and then monetized, is referred to
as a carbon offset or credit, measured in metric tons of carbon
dioxide equivalent (MtCO2e) and is the unit of trade on most
of the world's carbon markets.
Forest offset project types include improved forest management (IFM), avoided conversion (AC) of forestland to a nonforest use and afforestation/reforestation (AR). Challenging
eligibility requirements for AC and high capitalization costs
and extended ROI horizon for AR make these two project types
a limited opportunity for most forest owners. At least over the
next several years, IFM projects will continue to contribute
most of the compliance offsets demanded under California's
C&T program.
As the names of these project types imply, forest carbon
projects are designed to encourage landowners to manage
their forests in a manner that increases and maintains forest
stocking at or above a "business as usual" level. That is, a level
higher than the landowner could or would have maintained had
they not committed to the carbon project. Under modern forest
carbon standards, actions that qualify forests for offset projects include commitments to maintain forest in forestland use
THE CONSULTANT

2018

(e.g., conservation easements), enrolling in forest certification
programs, extending rotations, managing for long lived wood
products and reduced harvesting in special areas or across entire
ownerships. From the landowner's perspective, a carbon offset
project is essentially a supply agreement where the landowner
is compensated to maintain a minimum stocking level for a
specified period. From the buyer's perspective, a forest carbon
offset is a cost containment mechanism relative to their other
GHG emission reduction options.

STATE OF THE NORTH AMERICAN
COMPLIANCE CARBON MARKET
The U.S. carbon market is divided into voluntary and compliance sectors. Voluntary buyers purchase offsets to demonstrate
corporate social responsibility and strengthen their connection
to buyers of their products. Compliance buyers purchase offsets
to satisfy a legal obligation to meet mandatory GHG emissions
targets. The market for voluntary offsets remains a small fraction
of the U.S. carbon market. While the global voluntary market
saw substantial growth between 2005 and 2008, the recession
and political uncertainty caused it to scale back significantly. The
voluntary market has recovered somewhat from its low, but supply has always outpaced demand. In 2016, prices averaged $2.90
per offset (all project types) and $5.10 per offset (forestry and
land use projects) with over half of all offsets remaining unsold.
Conversely, the market for compliance offsets continues
to expand. Compliance markets are driven by industry- or
economy-wide GHG emissions caps that are mandated by a
government body. As the world's sixth largest economy and
14th largest GHG emitter, California is notable as the largest
23



Table of Contents for the Digital Edition of The Consultant - 2018

From the Executive Director End Notes
From the President ACF: Forestry, Fellowship and Value
Sharing the Stories of the Trees: ACF Distinguished Forester Jim Able
Maple Syrup: A Steigerwaldt Family Tradition
The South Carolina Chapter and Forestry Students
The Association of Consulting Foresters Celebrates 70 Years
Carbon Offsets: A Viable Opportunity for Forest Landowners?
Changes of Biblical Proportions
Forests for Fish In Michigan, Foresters and Anglers are Learning from Each Other
Case Study: Richland Township Woods, North Central Indiana
Invasive Species 101
Evaluating Forest Inventory Technology for Small Landowners
Choosing the Right Accountant or Tax Preparer
The History of Forestry in Ireland
The American Oak Project Midleton Distillery Creates Rare Irish Whiskey to Promote Sustainable Forestry
Products & Services Marketplace
Index of Advertisers
Why not Surround Yourself with the Best?
The Consultant - 2018 - Intro
The Consultant - 2018 - cover1
The Consultant - 2018 - cover2
The Consultant - 2018 - 3
The Consultant - 2018 - 4
The Consultant - 2018 - 5
The Consultant - 2018 - From the Executive Director End Notes
The Consultant - 2018 - From the President ACF: Forestry, Fellowship and Value
The Consultant - 2018 - Sharing the Stories of the Trees: ACF Distinguished Forester Jim Able
The Consultant - 2018 - 9
The Consultant - 2018 - 10
The Consultant - 2018 - 11
The Consultant - 2018 - Maple Syrup: A Steigerwaldt Family Tradition
The Consultant - 2018 - 13
The Consultant - 2018 - 14
The Consultant - 2018 - 15
The Consultant - 2018 - The South Carolina Chapter and Forestry Students
The Consultant - 2018 - 17
The Consultant - 2018 - 18
The Consultant - 2018 - 19
The Consultant - 2018 - The Association of Consulting Foresters Celebrates 70 Years
The Consultant - 2018 - 21
The Consultant - 2018 - Carbon Offsets: A Viable Opportunity for Forest Landowners?
The Consultant - 2018 - 23
The Consultant - 2018 - 24
The Consultant - 2018 - 25
The Consultant - 2018 - 26
The Consultant - 2018 - 27
The Consultant - 2018 - Changes of Biblical Proportions
The Consultant - 2018 - 29
The Consultant - 2018 - 30
The Consultant - 2018 - 31
The Consultant - 2018 - 32
The Consultant - 2018 - 33
The Consultant - 2018 - Forests for Fish In Michigan, Foresters and Anglers are Learning from Each Other
The Consultant - 2018 - 35
The Consultant - 2018 - 36
The Consultant - 2018 - 37
The Consultant - 2018 - Case Study: Richland Township Woods, North Central Indiana
The Consultant - 2018 - 39
The Consultant - 2018 - Invasive Species 101
The Consultant - 2018 - 41
The Consultant - 2018 - 42
The Consultant - 2018 - 43
The Consultant - 2018 - Evaluating Forest Inventory Technology for Small Landowners
The Consultant - 2018 - 45
The Consultant - 2018 - 46
The Consultant - 2018 - Choosing the Right Accountant or Tax Preparer
The Consultant - 2018 - The History of Forestry in Ireland
The Consultant - 2018 - 49
The Consultant - 2018 - 50
The Consultant - 2018 - 51
The Consultant - 2018 - The American Oak Project Midleton Distillery Creates Rare Irish Whiskey to Promote Sustainable Forestry
The Consultant - 2018 - 53
The Consultant - 2018 - 54
The Consultant - 2018 - 55
The Consultant - 2018 - Products & Services Marketplace
The Consultant - 2018 - 57
The Consultant - 2018 - 58
The Consultant - 2018 - 59
The Consultant - 2018 - Index of Advertisers
The Consultant - 2018 - 61
The Consultant - 2018 - Why not Surround Yourself with the Best?
The Consultant - 2018 - cover3
The Consultant - 2018 - cover4
The Consultant - 2018 - outsert1
The Consultant - 2018 - outsert2
The Consultant - 2018 - outsert3
The Consultant - 2018 - outsert4
The Consultant - 2018 - outsert5
The Consultant - 2018 - outsert6
http://www.nxtbook.com/naylor/AFFA/AFFA0017
http://www.nxtbook.com/naylor/AFFA/AFFA0016
http://www.nxtbook.com/naylor/AFFA/AFFA0015
http://www.nxtbook.com/naylor/AFFA/AFFA0014
http://www.nxtbook.com/naylor/AFFA/AFFA0013
http://www.nxtbook.com/nxtbooks/naylor/AFFA0012
http://www.nxtbook.com/nxtbooks/naylor/AFFA0006
http://www.nxtbook.com/nxtbooks/naylor/AFFA0004
http://www.nxtbook.com/nxtbooks/naylor/AFFA0005
http://www.nxtbook.com/nxtbooks/naylor/AFFA0008
http://www.nxtbook.com/nxtbooks/naylor/AFFA0007
http://www.nxtbook.com/nxtbooks/naylor/AFFA0009
http://www.nxtbook.com/nxtbooks/naylor/AFFA0010
http://www.nxtbook.com/nxtbooks/naylor/AFFA0011
http://www.nxtbookMEDIA.com