This piece was written with Paula Swedeen of the Pacific Forest Trust
A new issue brief, released today by the World Resources Institute and the Pacific Forest Trust, looks at the economic opportunities for southern landowners created by emerging forest carbon offset markets. This new revenue stream can offer real rewards to landowners who steward their forests for climate benefits.
Original economic analysis done by the authors suggests that under current market conditions (offset prices in the $8-$12/metric ton CO2e range), income from carbon offsets may be sufficient in some instances to pay property taxes or the “incremental” costs of sustainable forest management certification. From a purely financial perspective, however, revenue from offsets in today’s still-developing market is not likely sufficient to outcompete real estate development in the region.