Large Landowners

Companies are increasingly committed to reducing their carbon footprint as part of broader sustainability and climate action goals. By purchasing forest carbon offsets, companies can balance out their emissions by supporting projects that actively remove or reduce CO2 in the atmosphere. Forest carbon offsets are particularly appealing because they provide measurable environmental benefits, support biodiversity, and contribute to long-term ecosystem health. Additionally, carbon credits can help companies meet regulatory requirements or achieve voluntary carbon neutrality commitments.

An Improved Forest Management (IFM) carbon project enhances a forest's carbon sequestration through altered management practices. This can include silvicultural inputs to maintain (or improve) forest productivity, sustainable harvesting, extended rotation periods, and protecting high carbon stock areas. By adopting long-term sustainable forest management practices with carbon sequestration and storage as key management objectives, the forest stores more carbon, which is then quantified as carbon credits in offset markets. IFM projects provide landowners with the flexibility to balance multiple management objectives, such as carbon sequestration alongside other, more traditional, revenue streams (i.e., timber sales).

The primary difference between compliance and voluntary carbon projects lies in their regulatory frameworks and market drivers.

• Compliance Carbon Projects are part of regulated markets, where entities are legally required to reduce their carbon emissions and may use carbon credits to meet these obligations. These projects must adhere to stringent standards set by governmental or international regulatory bodies. These projects often require 100+ year commitments from landowners. 
• Voluntary Carbon Projects operate in unregulated markets, where businesses and individuals choose to offset their carbon emissions on a voluntary basis. These projects typically follow standards established by independent organizations and offer more flexibility in terms of project types and methodologies. These projects often require 30-to-40-year commitments from landowners.

While both types of projects aim to reduce greenhouse gas emissions, compliance projects are driven by legal requirements, whereas voluntary projects are motivated by corporate social responsibility, sustainability goals, or market differentiation.

A landowner entering into an IFM project commits to a long-term agreement, typically spanning several decades, to manage their forest in a way that maintains or enhances the overall carbon storage in the forest. This often involves reducing the intensity of commercial timber harvesting compared to current practices. While the landowner retains some control over key management decisions—such as for example, some degree of flexibility regarding the intensity of harvesting and the scope of the project—they receive guidance from the project developer to ensure that the management practices align with the project's carbon storage goals and applicable carbon project standards. 

Finite Carbon works with well-established carbon registries and state agencies, including ACR, the Climate Action Reserve (CAR), and the California Air Resources Board, in addition to qualified third-party verifiers to verify and register our projects. Each project is rigorously evaluated to ensure it meets high standards for carbon sequestration and sustainability. All carbon credits available on the Finite Carbon Marketplace are registered with third-party carbon registries, ensuring transparency and credibility. Buyers can track every credit with its unique serial number through the registries for additional assurance.

• Project Developer. 

The project developer guides the landowner through the design and implementation of the project. They provide support throughout the entire process, from the feasibility and design stages to project development and the sale of carbon credits. The project developer also coordinates and introduces other necessary parties to the landowner as appropriate.

• Carbon Registry. 

The carbon registry is typically a nonprofit organization responsible for approving and maintaining science-based methodologies for the registration and verification of carbon projects. They issue credits to projects that have completed, and adhere to, standardized procedures.

Finite Carbon works closely with industry leaders in the voluntary market such as ACR and Climate Action Reserve, and in the compliance market with California Air Resources Board (CARB).

CARB issues credits directly for compliance projects developed under the California Cap and Trade Program.

• Third-Party Verifier. 

The third-party verifier ensures the project complies with the applicable registry’s methodology. This includes verifying all calculations and assertions made by the landowner and project developer for accuracy and completeness.

• Carbon Credit Buyer. 

The carbon credit buyer purchases the verified carbon credits. Landowners working with Finite Carbon have full control over where, when, and to whom they sell their credits. Purchase agreements are typically executed after credits are issued to the landowner, though can also be agreed to in advance of credit issuance. Additionally, landowners can arrange longer-term purchase agreements with buyers. 

• Feasibility and Landowner Education:

The project developer begins by providing the landowner with a detailed overview of the process and the commitments involved in enrolling in an IFM project. If the landowner expresses continued interest, they supply data on their forest to the developer, who conducts a feasibility study. This analysis assesses the operational and financial viability of the project based on the carbon methodology requirements and the landowner's goals and constraints. If the feasibility study results are favorable and both parties agree to proceed, the process advances to the contracting phase.

• Project Agreements/Contracting:

In this phase, the landowner finalizes the project design and scope through agreements with the project developer, the registry, and third parties assisting with project development. The terms of these agreements vary by developer. For projects developed by Finite Carbon, the landowner is not required to convey any property rights.

• Project Listing:

The carbon developer, in collaboration with the landowner, submits the necessary documentation to list the project on the registry’s website. Once listed, project activities can commence, and these activities are documented publicly on the registry’s platform. Some landowners choose to keep project documentation private after the project is listed until the project is verified and credits are issued by the registry.

• Inventory:

The project developer designs an inventory plan and, with the assistance of local professional foresters, conducts on-the-ground measurements of the carbon stored in the forest. These inventories are carried out at regular intervals throughout the project's duration.

• Modeling:

Using the inventory data, the project developer calibrates forest carbon stock models to provide more accurate estimates of additional carbon sequestered and stored by the project.

• Verification:

A third-party verifier, coordinating with the landowner and project developer, conducts an independent assessment of the project’s documentation and carbon calculations. Verifications occur at regular intervals during the project’s lifecycle.

• Credit Issuance:

Upon successful verification, the registry approves the project and issues carbon credits. These credits are typically issued annually.

CARB issues credits directly for compliance projects developed under the California Cap and Trade Program.

• Commercialization and Revenue Generation:

The issued carbon credits are then made available for sale. While some forest carbon developers require that credits be issued to the developer’s registry account, Finite Carbon allows the landowner full control of the credits, offering expert services to market the credits for sale.

• Timing:

The first issuance of carbon credits generally occurs within 18-24 months after the project agreement is signed between the landowner and the developer.