The Consultant - 2018 - 27

CARBON OFFSETS

of annual growth retained on the project property. In short, the
more favorable the growing conditions for conventional wood
products, the more favorable the conditions for forest carbon offsets. That said, even the best growing conditions can't overcome
management approaches where harvesting regularly exceeds
growth for extended periods. Conversely, tenures of relatively
conservative management on large acreages in poorer growing
conditions can yield exceptional carbon projects.
Forest landowners of all types and from all regions of the U.S.
have successfully developed and registered forest offset projects
(Table 2). Offset projects are not a fit for every landowner, nor
will every forest perform under the eligibility rules and feasibility
constraints of the compliance offset protocol. But landowners
from every corner of the U.S. have demonstrated that habitat
conservation, industrial timber management and carbon yields
can co-exist on the same property and complement traditional
financial returns. Many landowners are discovering that conservation values and long-term sustainable management can
have synergy with the compliance carbon offset market.

A VIABLE OPPORTUNITY FOR U.S. LANDOWNERS?
Our experience in the compliance market across the U.S. has
only reinforced our conviction that active participation of consulting foresters is key to project success. Consulting foresters
have a deep understanding of their clients' property, ownership
goals and management approach. As the landowner's trusted
advisor, the consulting forester is in the best position to assist
the landowner in evaluating carbon opportunities, identifying
an experienced and competent project service provider and
serving as the landowner's liaison during the development
process. While many consulting foresters lack forest carbon
development experience per se, they are well-acquainted with
several of the major components of carbon projects and can
provide essential development services, specifically initial and
periodic forest carbon inventories, integration of carbon projects
into forest management plans and ongoing project accounting
and reporting support.
Forest carbon revenue can diversify and complement a landowner's portfolio of forest assets and therefore stabilize and
increase long-term timberland ROI. As both an asset and management strategy, forest carbon can be well aligned with active
forest management if applied by knowledgeable practitioners
in the right situation. However, several factors continue to create barriers to widespread landowner participation in carbon
markets, notably high development and long-term operations
and maintenance costs, overly complex and dynamic project
standards and increasing verification and regulatory review
periods. These barriers exist for all ownerships, but can be
overcome in many cases with the proper alignment of essential
property attributes and an experienced project team to guide
the landowner through the project development process.
The world's economies will continue to decarbonize and
forest offsets will be part of that effort. But recent changes
to the North American compliance offset market leave much
THE CONSULTANT

2018

Table 2.Approximate first year and annual IFM offset project
revenue by U.S. region (revenue based on $10/offset).

to be determined and beg the question: Should forest landowners participate? Projects originating in California are
fortunate to have relative clarity on market viability through
2030. Outside California, uncertainty prevails and forces are
working to both contract and expand the compliance offset
market. In addition to increased jurisdictional linkage of C&T
programs, a possible move toward market expansion is the
nascent Carbon Offsetting Scheme for International Aviation
(CORSIA). Significant as the first global GHG reduction program covering an entire industrial sector, CORSIA seeks to
mitigate 1.3 percent of global GHG emissions in 2021 and
upwards of 25 percent by 2050. Beginning in 2021, many of the
world's aircraft operators will be required to purchase offsets
to account for their increased emissions beyond 2020 levels.
While CORSIA could create tremendous demand for forest
offsets, final decisions on qualifying offset project types and
protocols are still several years away.
While the market for forest carbon offsets has always
been dynamic, our advice to potential participants remains
unchanged. Landowners who meet compliance offset program
eligibility requirements and manage their lands in alignment
with protocol requirements should assemble an experienced
team to help determine if an offset project is a fit for their
property and institutional personality. When the point of decision arrives, project performance and landowner goals will
be weighed against current offset rules and relative market
strength. As the compliance offset market continues to transform and mature, the encouraging news is that this market
has demonstrably rewarded forest landowners for their commitments to sustainable forestry and appears to have staying
power. Moreover, landowners can now rely on an industry of
knowledgeable and seasoned project developers and consulting
foresters to navigate this evolving market. 
Dylan H. Jenkins (djenkins@finitecarbon.com) is Vice President of
Portfolio Development for Finite Carbon, which focuses exclusively
on the development of forest carbon offset projects.
27



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
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