Forestry carbon projects

 

Investment Types

To generate carbon offsets from forestry one can either:

  1. Plant new forests,

  2. Change the way existing forests are managed, or

  3. Prevent the loss or degradation of existing natural forests.

In Stafford’s view, the third category (often referred to as REDD+ projects) holds higher levels of uncertainty regarding additionality and compliance with ESG criteria.

For this reason we recommend a strategy that focuses on the following three project types:

 

Afforestation

Afforestation projects involve planting trees on land which has not previously had any forest cover, or on land where forests have been missing for a long time (more than 50 years according to the UNFCCC).

Whilst afforestation can be done using mixed native species, we focus this approach more on commercial plantations which tend to use introduced species.

The high growth rates achieved in these plantations makes them one of the most efficient ways to remove large volumes of carbon in a relatively short timeframe.

In addition to this, commercial plantations will also provide a sustainable source of low-carbon materials, significant long-term employment in rural areas, and a range of positive ecosystem services.

Improved Forest Management

These projects start with existing forest areas and introduce changes to their management - compared to typical or “common” practice in the region - that allow carbon stocks to increase over time.

These changes can include a reduction in harvesting intensity or an extension to the age at which trees are harvested.

Although they will generally produce a smaller volume of offsets compared to afforestation projects, IFM projects have the benefit of being capable of providing revenues from timber harvesting from the outset.

The IFM concept also lends itself well to managing trees over longer timeframes, and often in a mixed species environment, which can bring added biodiversity value.

Natural Forest Restoration

Similar to Afforestation, Natural Forest Reforestation involves the establishment of new forests, although in this case to replace forest that has previously been cleared, usually as a result of illegal logging or to allow the land to be used for agriculture or mining.

A mix of native species is used in this process. These are often slower growing than those used in commercial plantations, and so the volume of carbon offsets they generate is lower. They also do not provide a significant source of sustainable materials or harvesting revenue.

Longer-term employment opportunities once the forests are established are also more limited. Their main appeal is therefore in the biodiversity and ecosystem value that they bring.