Carbon Markets 101
Introduction
The carbon marketplace where forest carbon offsets and credits are bought, sold, and traded. This marketplace includes various actors, such as landowners, project developers, brokers, registries, and buyers. Due to its complexity, landowners often struggle to understand how the carbon market works and what compensation they can expect. The resources below are designed to help landowners feel more confident engaging with this market.
Facts about Forest Carbon and Carbon Markets
This first article provides you with quick facts and a simple overview of the carbon market.
As you review this list of resources, please also use this list of key terms and concepts related to forest carbon contracts.
How a Forest Carbon Offset is Made and Sold
This article describes the most common kinds of offset projects, including afforestation, improved forest management, and avoided conversion. It explains how these projects are developed and what they represent before the credit is sold.
Forest Carbon Market Structures and Mechanisms
Once you understand what is sold, you may be ready to explore where and how the credit is sold. This article provides an overview of the main types of carbon marketplaces, including the voluntary and compliance markets.
Marker Actors: Who is involved in generating a carbon credit?
Landowners may also want to learn more about who they are working with. This article helps landowners understand the differences among project developers, registries, and related parties, so they can feel confident in their engagement
Project Developers: Who am I working with?
The project developer works with the landowner to navigate the market and connect them to registries and buyers. A list of developers and programs that work with family forest owners in the Appalachia region is provided by theHeritage Habitat and Forestry consulting company. A list of developers and programs for family forest owners in the Southeast is provided by Mississippi State Extension, and is found on page four of the Voluntary Forest Carbon Markets and Programs for Mississippi Landowners report.
How Much Should I be Paid to Manage Forest Carbon?
Credit prices are determined under typical supply and demand principles, so prices fluctuate and can vary based on which type of contract you enter, but this article helps you understand some average prices and what to expect.
News Brief: Podcast Discusses Carbon Payments for Forest Landowners
Review this article and podcast to get the latest insights into carbon pricing and markets.
If you have any questions or are interested in collaborating with FOCCE, please reach out to Melissa Kreye at mxk1244@psu.edu
Previous versions of this article were co-authored by Calvin Norman
