INTRODUCTION:
Forests
are being recognized in financial markets
for the ecosystem services that they
provide, such as biomass for renewable
energy, clean water, clean air, habitat for
wildlife (especially threatened & endangered
species) and now carbon
sequestration. Carbon storage is
one method used to offset carbon emissions
in the form of carbon dioxide (CO2),
which increases global warming.
The advantage of forests providing these new
ecosystem services versus other systems,
such as algae farms for energy, or
underground storage tanks for carbon
dioxide, is that our forests provide other
amenities that alternative carbon storage
systems do not provide, such as clean air
and water, wildlife habitat (especially for
threatened and endangered species),
protection from soil erosion, wood products,
and recreation for humans. Finally, these
new ecosystem services will reward forest
landowners with increased revenue
opportunities for their forestland and keep
local economies strong.
EMERGING MARKETS:
New market trading platforms, government
regulations, and financial incentives are
emerging with the goal to reduce CO2
emitted to the atmosphere. Entities that
emit CO2
are required in some situations to turn
around and sequester CO2
out of the atmosphere in order to remain
carbon neutral, or pay for this sequestered
service from another entity. Currently,
there is no overreaching transfer mechanism
in place to trade CO2
credits from storers to emitters. Until
these markets are developed and standardized
the Alabama Forestry Commission recommends
that forest landowners and emitters be very
careful in making any long term contractual
commitments. While there are great
opportunities for increased incomes from
forestry operations, there are also
substantial risks that every entity must
evaluate.
DEFINITION OF CARBON AND CARBON
DIOXIDE (CO2)
UNITS:
Most trading platforms sell and buy units of
carbon dioxide equivalent in metric tonnes
(MTCO2e).
An equivalent metric tonne of CO2
is abbreviated MTCO2e.


A molecule of carbon dioxide includes the
weight of the gas, which is more than the
weight of the carbon alone because the gas
also includes two oxygen atoms. A simple
multiplication factor, 3.67,
can be used to convert carbon to carbon
dioxide equivalent. (The multiplication
factor of 3.67 is derived by comparing the
molecular weight of carbon with the
molecular weight of oxygen (CO2
= 12+16+16=44. C = 12.) As carbon combines
with oxygen to form CO2
the total molecular weight
increases at a consistent ratio of 44/12 or 3.67)

FOREST MANAGEMENT ACTIVITIES:
Forestry management activities, such as
reforestation or harvesting, can be
significant sources or sinks for carbon.
Site preparation burning, fertilizing,
thinning, salvage cuts, hardwood control,
livestock grazing, and many other management
activities influence carbon storage in a
forest stand, and are also important for the
health and vitality of a growing forest.
Forest landowners must consider the ability
to continue these management activities
before entering long-term contracts (i.e.
greater than 15 years in length) to
sequester carbon. A result of entering into
a contract agreement which limits these
management activities could result in forest
stagnation, creating significant forest
health issues (such as increased risks of
southern pine beetle infestations or
destructive wildfires). Additionally,
stagnate forests create closed canopies
which limit use by wildlife.
Next
Additional Resources:
-
How much carbon have your trees stored?
-
Carbon
Sequestration Publications
-
Carbon
Sequestration Website
-
Carbon Sequestration FAQs
The Alabama
Forestry Commission is currently
updating information on the Carbon
Sequestration Webpage as new
developments occur. Please periodically
check this website for new updates.
For more
information contact:
Alabama Forestry Commission