WVFA Mountain State Forestry Spring 2022

F E A T U R E D N E W S www.wvfa.org Spring 2022 | West Virginia Forestry Association Mountain State Forestry 13 Management (IFM) projects are by far the most common project type in West Virginia. IFM projects recognize typical forest management practices in a region and then aim to “improve” upon them for achieving carbon objectives. The primary means of increasing carbon sequestration through IFM projects is by deferring timber harvests, thereby extending rotation lengths. For the last decade, most forest carbon projects required a commitment of 40–100 years; to withdraw before then triggered significant financial penalties. Today, however, new forest carbon programs are emerging with much shorter time frames, some requiring enrollments as short as one year. With longer-term commitments, land can be bought and sold and the forest carbon project requirements stay with the property. A common misconception about forest carbon projects is that they all prevent harvesting. Some do, such as Avoided Conversion projects. However, IFM projects, which are most relevant to West Virginia, allow landowners to choose one of four courses of action: 1. Do not cut but sell the volume of annual forest growth as carbon offsets; 2. Cut and sell the volume of annual forest growth as timber, into forest product markets; 3. Some combination of 1 and 2, selling some timber and some carbon offsets; or 4. None of the above, no obligation to cut trees or sell anything. Note that the decisions center around a forest’s annual growth, which is already widely accepted as the basis for sustainable forest management of any kind. Forest carbon projects unlock markets that provide optionality for landowners to generate revenue from different sources, sometimes concurrently. The markets for forest carbon credits, like many other facets of climate change mitigation technologies, are evolving rapidly. There are two broad categories of markets, based on the methodologies used in developing the project: compliance and voluntary. The US compliance or regulatory market is dominated by California’s program with the state’s Air Resources Board (ARB). Carbon-emitting companies located in California are compelled by state law to reduce their CO2 emissions or offset them with carbon credits. Then, there are more diverse voluntary markets, with varying sets “For the last decade, most forest carbon projects required a commitment of 40–100 years; to withdraw before then triggered significant financial penalties. Today, however, new forest carbon programs are emerging with much shorter time frames, some requiring enrollments as short as one year.”

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