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Frequently Asked QuestionsTop of Page
1. What are the potential impacts of global warming on Sierra Nevada forests? One of the biggest threats to the future of the Sierra Nevada is global climate change. Sierra Nevada forests are some of the world’s most productive carbon sequestering lands. These forests are remarkably resilient, having survived natural perturbations in temperature and precipitation for thousands of years. But this natural resiliency and carbon sequestration potential is threatened by global climate change. Anticipated effects of climate change on the Sierra Nevada forest include: changing precipitation trends, a loss in snowpack, a decrease in soil moisture, an increase in fire occurrences and severity, floods and droughts, and the spread of invasive pests such as invasive bark beetle that could destroy our Sierra forests. It is estimated that increasing temperatures will result in a projected decline of 25-40 percent of the Sierra snowpack by 2050. By the end of the century, losses could reach 30-70 percent (Sierra Nevada Alliance). These changes in climate and hydrology will weaken the natural ability of forests to sequester carbon, release oxygen, store and release water, provide habitat, and deal with natural perturbations. These climate change impacts will be further exacerbated by a loss of forest ecosystems due to increasing development pressure in the Sierra Nevada. Conversion of land from forests to rural residential is occurring at an alarming pace—within thirty years, one-third of all Sierra Nevada forestlands will have been developed. The Pacific Forest Trust estimates that under a “business-as-usual” scenario, California will lose 170,000 acres of forestland between 2008 and 2020, resulting in 37 million metric tons of CO2 emissions. If we lose our forests to development and other land uses, we take away the earth’s ability to provide the processes we depend on. <Back to top> 2. How will a carbon project benefit the Sierra Nevada? Socioeconomically Forest carbon projects have the potential to enhance the Sierra Nevada economy through the creation of green jobs in the forestry and tourism industries. Forest projects will require forestry professionals to inventory and verify carbon stocks in forests, as well as manage projects using Natural Forest Management practices. Additionally, conserving and restoring Sierra forests will maintain and enhance the region’s identity as a place of natural beauty and open space, drawing increased tourism to the area to support this enormous part of the Sierra economy. Forest projects can also provide increased recreational opportunities for tourists and Sierra residents alike. Environmentally Sierra Forests have the natural ability to remove carbon dioxide from the atmosphere, filter water and purify air, control soil erosion, and provide habitat for wildlife. Forest projects will help maintain the ecological integrity of the Sierra Nevada, and allow forests to continue to provide these ecosystem services, bringing a wealth of environmental benefits to the region. These include climate change mitigation, through forests’ ability to sequester carbon from the atmosphere, and an increased ability to adapt to climate change due to increased forest resiliency to forest fires, and increased water retention to help cope with more frequent droughts. In addition to enhanced global warming mitigation and adaptation, conserving forests will help maintain functioning Sierra Nevada watersheds, which provide 60% of California’s drinking water. Healthy forests can also reduce soil erosion, and provide habitat to maintain the Sierra’s biodiversity. <Back to top> Financially Forest Carbon Projects have the potential to provide a stable revenue stream from the sale of resulting carbon credits. Forest Projects already demand some of the highest prices on the carbon market, and in the likely situation of mandated greenhouse gas emissions reductions and a regulated carbon market in the United States, the price of a ton of carbon is only predicted to increase. Since Sierra Forests store 150-200 tons of carbon per acre, tapping into the carbon market is an opportunity to capture revenue that can provide funds for sustainable forestry and conservation initiatives in the region. 3. How do carbon projects promote conservation? Forest carbon projects are unique in the carbon market because they utilize natural infrastructure and processes to reduce greenhouse gas emissions. By placing a value on the ecosystem services that forests provide, forest carbon projects stimulate a new revenue stream for forest management and conservation. A landowner who participates in a project is given incentive to restore and sustainably manage their forestlands for maximum carbon storage over the long term. The value of these sustainable practices and carbon storage capacity is reflected in the high price to purchase carbon forest offsets. The revenue from the purchase of offsets cycles back into the landowners hands, providing a cyclical and long term revenue stream to promote conservation. <Back to top> 4. What is a carbon offset/credit? An offset or credit represents the reduction of one metric ton of carbon dioxide or the greenhouse gas equivalent. Offsets are sourced from different project types, including renewable energy, methane abatement, energy efficiency, and forestry. Forestry projects focus on natural carbon sinks, and provide funding for the protection of native forests. Currently, forestry offsets demand the highest value per ton, due to their bundled co-benefits and the expensive costs of developing such projects. <Back to Top> 5. How much can you sell a carbon offset for? Currently, there are two markets for carbon offsets. The larger market has been developed in response to compliance with the Kyoto Protocol, under which 38 industrialized countries have agreed to cap and trade greenhouse gas emission credits. The small non-Kyoto market is a voluntary initiative with participating organizations seeking to meet local and national emission reduction requirements. Voluntary offsets are different from “compliance” offsets but can exist as a flexible compliance mechanism under a cap-and-trade system. Prices in the voluntary market vary from $1 on the low end, to $2-3 for Chicago Climate Exchange tons, to $20 for high quality credits associated with strong sustainable development benefits. Sierra Business Council is actively registering projects with the voluntary offset standards developed by Climate Action Registry (CAR). CAR’s “Certified Reduction Tons” (CRTs) are among these higher priced offsets, demanding a premium price due to their consideration as a potential pre-compliance protocol, and their equivalence as offsets registered under the global Voluntary Carbon Standard. <Back to Top> 6. How do the sale of carbon offsets help mitigate greenhouse gas emissions and adapt to climate change? Forests act as carbon sinks, removing CO2 from the atmosphere through photosynthesis, and storing it long term in various carbon pools as part of the terrestrial carbon cycle. By encouraging natural forest management, avoiding conversion to develop, and reforesting previously deforested lands, humans can help provide the ability for the earth to naturally reduce the effects of climate change. Through each of these practices, we also help forests to become more resilient and adapted to the natural changes in climate which cannot be stopped. Through funding from completing forestry carbon offset projects, supporters are helping Sierra Nevada forestlands continue a natural process pertinent to survival and adaption to changes in our climate. <Back to Top> 7. What does it mean to “retire” an offset? Carbon offsets are “retired” by being purchased and “not used”. Every offset registered under the California Climate Action Registry has a unique serial number signifying a right to a specific emission reduction. When Sierra Business Council markets a carbon offset, we seek buyers interested in purchasing and retiring the carbon offset or “rights” which offset their emission, resulting in the removal of the ton from circulation. Often, buyers will purchase offsets and resell them on the market in order to make a profit. True climate benefit results when an offset is purchased, retired, and revenue goes directly to the project owner. The Registry provides public reports for buyers to check if offsets were retired in their name. <Back to Top> 8. What does it mean to be “carbon neutral”? Being carbon neutral means achieving net zero carbon emissions. In other words, an individual or organization must reduce their carbon footprint to zero. This can be done by balancing carbon released through direct and indirect emissions with an equivalent amount of carbon sequestered or purchased through offsets. If you are interested in minimizing your carbon footprint and possibly achieving carbon neutrality, see the “Think Local Carbon” link on how you can support local carbon forestry projects in the Sierra Nevada. <Back to Top> 9. How can I calculate my carbon footprint? Several ways. You can click on the “Think Local Carbon” tab to be directed to a popular carbon footprint website. The California Registry provides guidance on calculating entity emissions for your business and activities. You can also contact SBC for assistance with calculating and registering your entity emissions on the Reserve. <Back to Top> 10. How do I know I am using a credible standard to measure my offsets? Carbon offset standards vary in their requirements for project development and certification. A consumer looking to offset their emissions using offsets from high quality projects with demonstrable benefits to the climate should be wary about the types of offsets they are purchasing and therefore funding. High quality standards require that projects be measurable, transparent, are third party certified, and have legitimate climate benefits. Most importantly, they provide “additionality”, meaning the purchase of an offset is benefiting a project that went above and beyond business-as-usual practices in order to sequester more carbon and prevent more greenhouse gas emissions, and in this way provide real climate benefits. Protocols that do not have strict additionality standards run the risk of granting carbon credits to projects that would have occurred anyway, and thus provide no supplementary climate benefits. Protocols that do not have strict additionality standards run the risk of granting carbon credits to projects that would have occurred anyway, and thus provide no supplementary climate benefits. The Climate Action Reserve has developed high-standard protocols, taking into great consideration a number of different stakeholders and other market standards. These standards have a solid history and reputation for demonstrating strong environmental integrity and credibility. Other standards, such as the Voluntary Carbon Standard, the Climate, Community, and Biodiversity Standards are providing credible and effective protocols. <Back to Top> 11. What is the Climate Action Reserve (CAR)? The Climate Action Reserve (CAR), formerly known as the California Climate Action Registry (CCAR), is a private non-profit organization originally formed by the State of California in 2001. The Reserve serves as a voluntary greenhouse gas (GHG) registry to protect and promote early actions to reduce GHG emissions by organizations. The California Registry provides leadership on climate change by developing and promoting credible, accurate, and consistent GHG reporting standards and tools for organizations to measure, monitor, third-party verify and reduce their GHG emissions consistently across industry sectors and geographical borders. In April 2009, CCAR became known as the Climate Action Reserve, a U.S. private nonprofit organization representing international interests in addressing climate change and bringing together participants from the government, environment and business sectors. As the subsequent organization of the California Climate Action Registry, the Climate Action Reserve continues building on the California Registry’s reputation as a respected and internationally recognized leader in climate change issues. For more information on the Climate Action Reserve and the Climate Action Registry, visit their website: http://www.climateactionreserve.org <Back to Top> 12. What are the project types that qualify under CAR? CAR defines three types of Forest Projects that qualify under their Forest Project protocol: Reforestation, Improved Forest Management and Avoided Conversion: Reforestation projects are based on the restoration of native tree cover on land that has been forested in the past, but has been out of tree cover for at least ten years. Improved Forest Management projects involve an alteration of the land management practice on existing forests that promotes the regeneration of native trees and a resulting increase in carbon sequestration on the land. Additionally, Improved Forest Management projects must employ Natural Forest Management Practices (as defined in the CAR forest project protocol). Avoided Conversion projects involve specific conservation actions that prevent the clearing of native forests on the project site, and the subsequent non-forest use of the land. All of these project types must demonstrate permanence and additionality. SBC can help you determine whether your project falls into these categories and qualifies under the CAR protocol requirements. <Back to Top> 13. Will CAR offsets be recognized in a “compliance” market? Whether CAR registered offsets (Certified Reduction Tons- CRTs) will be recognized for regulatory compliance will depend on if the state recognizes CRTs as offsets in its program. The Reserve has already been recognized as a source of high quality offsets by a number of government bodies. The State of California has adopted CAR project protocols as voluntary early actions under AB 32. <Back to Top> Any land owner/manager/trust, agency, or other land use organization who owns the trees within the assessment are can participate. Forestry projects can be based on public of private lands anywhere in the United States. The project must qualify under specific protocol requirements, and fit into one of the specified project types (described below). SBC will work with you to determine if your project qualifies and is feasible under CAR protocols. <Back to Top> 15. Is there a minimum acreage for qualifying a carbon project through SNCC and CAR? No, there is no minimum acreage to qualify, but there is a limit on the financial feasibility of completing a project. SBC is willing to work with landowners to explore and design property-specific approaches for registering, marketing, and maintaining offsets for the lifetime of the project which provides the greatest benefits financially and environmentally. SBC’s Sierra Nevada Carbon Cooperative program focuses on reducing the risks and costs for individual landowners by aggregating several properties to achieve a necessary economy of scale. <Back to Top> 16. Who is the Project Developer? The project developer may be a landowner or independent third-party who submits the Attestation to Title for the right to the offsets measured and registered from a project. Actual project development or implementation does not automatically entitle the developer to own the offsets. Whoever attests to ownership of the carbon rights is considered the project developer. <Back to Top> An organization that pools offset projects from multiple landowners in order to reduce costs and barriers, and sell on the open market. Aggregating several properties under one project reduces registration, verification, and monitoring costs that would otherwise be paid by individual landowners. In order to reduce such barriers so that landowners in the Sierra Nevada can participate in this emerging market, SBC’s Sierra Nevada Carbon Cooperative program focuses on reducing the risks and costs for individual landowners by aggregating several properties to achieve a necessary economy of scale. Acting as the project developer, SBC will work with forestry professionals to conduct the required inventory, registration, and verification services for all participating properties under a single contract. <Back to Top> 18. What is the process for registering credits through CAR? CAR requires that all projects be registered in the registry before project development begins. The process begins with project initiation and submittal fees and the carbon inventory, after which the developer completes a project submittal form describing how the project fits all characteristics required by CAR. The project proponent/developer then enters emission/reduction data in the registry. Third party verification follows, with a “Conflict of Interest” form submitted by the verifier. Once verification is complete and any non-conformities/recommendations are resolved, the offsets become “Certified Reduction Tons” or CRTs, available for sale on the voluntary market. CAR does not broker or sale offsets, they act only as a registry. CAR’s requirements and fee structure are as follows (at this time):
19. What is the project lifetime? The project lifetime refers to the duration that a project activity and its associated monitoring and verification are maintained. Under current protocols, this requirement is 100 years in order to ensure permanence of offsets. This means that the project must be annually monitored, annual fees paid, and periodic verification and inventories completed for 100 years after project initiation. SBC plans to help landowners with this requirement by aggregating projects to lower these costs, and provide management and monitoring for the life of the project. <Back to Top> 20. What carbon pools are required to be measured? CAR requires that measurements to determine carbon stocks, also called carbon pools, be done on above-ground living biomass, below ground living biomass, dead biomass, and wood products. Below-ground living biomass is computed based on above ground sampling, while the other on-site pools are sampled in the project. Wood products are measured using decay calculations from the volume of harvested wood. <Back to Top> 21. What are the verification & inventory requirements? Required carbon pools must be inventoried, and data verified periodically throughout the life of the project. An initial inventory must be completed and include a sampling methodology, a set of inventory plots, and methods to translate measurements into biomass estimates. All carbon estimates derived from sampling are measured statistically in terms of the size of the Standard Error relative to the Estimate of the Mean. Confidence Limits are to be expressed as a percentage of the mean. Estimates are evaluated at a 90% Confidence Limits. Deductions are applied based on the level of confidence in the estimate derived from field sampling. CAR requires that an approved 3rd party verifier be hired to review and assess reported data to confirm that the project developer has adhered to protocol reporting requirements. At this time, protocols require that verification be completed in year 1 of registering the project, and again in year 6. In year 7 a new verifier must be hired to verify the data, and then again in year 12. This cycle continues throughout the life of the project. <Back to Top> 22. Is a conservation easement required? The current version of the CAR Forest Project Protocol requires a conservation easement, which requires all forest projects to permanently dedicate the project land area to forest use. Upcoming protocols, due out in Spring 2009 do not require an easement on improved forest management or reforestation projects. Avoided conversion projects require either a conservation easement which includes terms allowing the carbon project or a transfer to public ownership. Public lands are exempt from any easement or agreement since the risk of land transfers to private parties is low and done in a transparent process. Under the new protocols, projects are required to enter into a Project Implementation Agreement with the California Registry, whereby the landowner agrees that they are obligated to comply with the protocol for the project lifetime and sets forth rights and remedies in the event of any failure to comply. <Back to Top> 23. Can a participating land owner still commercially harvest timber? Yes, under any project type, the landowner has the right to commercially harvest timber within the project area. The annual monitoring requires landowners to report any disturbances, harvested wood products, or leakage that occurred in the project boundary. During the initial baseline and project activity projections, any activity involving harvest or loss of stocks is to be measured and included in the calculation of reductions. <Back to Top> 24. What happens if my forest carbon stocks are disturbed (pests, fire, drought, etc.)? Project developers are responsible for compensating for any reversals in stored carbon. To assist project developers in managing this responsibility, forest projects will be “insured” through the implementation of a buffer pool. Each forest project will be required to set aside a certain amount of CRTs in a buffer pool, which can be tapped into in the case of a reversal. The amount of CRTs required to be set aside will be dependent on the risk of reversal for the given project. As an alternative, project developers may be allowed to insure against reversals through a standard insurance contract. <Back to Top> |
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