FAQ for Landowners
Q: What is Woodlands Carbon?
Woodlands Carbon aggregates and sells sequestered carbon offsets from certified family woodlands owners in Oregon. The aim is to create yearly revenue for family woodland owners from the carbon market. This helps ensure that these family forestlands remain as forests. Woodlands Carbon is a C Corporation, established by the Oregon Small Woodlands Association (OSWA), in partnership with the American Forest Foundation (AFF).
Q: What is "sequestered carbon dioxide"?
Sequestered carbon dioxide (CO2) has been removed from the atmosphere and stored long-term. Trees capture CO2 naturally, through photosynthesis. By removing CO2 and other “greenhouse gasses” from the atmosphere, trees help reduce or reverse global warming.
Q: How does this program help address climate change?
Burning fossil fuel releases carbon dioxide (CO2) into the atmosphere, which is generally acknowledged as contributing to global warming. The unique role of oil as the main source of transportation fuel makes reducing CO2 emissions a difficult problem. In theory, we can neutralize CO2 emissions by techniques such as carbon sequestration. Sequestration is the storage of CO2 captured from the atmosphere in a solid material through biological or physical processes. Family forests are CO2 sinks when they are increasing in density or area.
Q: Why would a business consider purchasing forest carbon offsets?
Many businesses are striving for sustainability and working toward carbon neutrality. Forest carbon offsets are one portion of the sustainability process. The overall process should also include significant energy savings and natural resource conservation.
Q: So, I can get paid for growing trees?
Yes. Offsets from certified managed forests are accrued annually. Therefore, you are selling the annual increase in carbon sequestered by your forest (the volume growth) and guaranteeing that this amount will remain sequestered for the length of the contract between you and Woodlands Carbon.
Q: What am I committing to?
You must be enrolled in the American Tree Farm System and maintain Tree Farm Certification for 15 years from the date of enrollment. The forest owner must be a member in good standing of the Oregon Small Woodlands Association, or equivalent forestry trade associations in the state the property is located, and maintain that membership for the contract period.
Q: How many tons of carbon dioxide can my forest sequester?
On average, forests in western Oregon will sequester 1.5 to 10 metric tons of carbon dioxide per acre, per year. The exact number will come from the data generated by your carbon inventory.
Q: So, I can sell up to 10 tons of offsets, per acre, per year?
Not exactly. The maximum that you can realistically sell is 80% of the sequestered carbon annually. You must maintain a 20% reserve against catastrophic loss, which can be recaptured at the end of the contract. Errors calculated into your inventory could also reduce the annual amount you can sell.
Q: How much are carbon offsets worth?
Forest carbon offsets are sold per ton of carbon dioxide through a voluntary market, creating a varied pricing structure. The final value of the offset is negotiated between Woodlands Carbon and the purchaser.
Q: Can I still sell timber and cut firewood?
Harvests do not need to take place every year and as long as growth exceeds harvest levels, you can sell credits annually. Any removals, either commercial or non-commercial, have to be accounted for and affected stands need to be re-inventoried. You will also want to retain the rights to the carbon in any products sold. This can be done by a simple stipulation in your timber sales contract.
Q: Can I enroll just a portion of my land to start with?
No. Our base contract requires that all eligible properties of an ownership must be enrolled. This ensures that more than just the best growing stands or areas that are not scheduled for harvesting for many years are enrolled.
Q: What if I change my mind after I enroll?
You will sign a contract with Woodlands Carbon in order to enroll in the program. The contract contains specific penalties for non-compliance. This includes willful breach of contract, failure to adhere to a management plan, non-conformance to certification standards and changing to non-forest use.
Q: What if insects, disease or natural disasters decimate the stand and kill the trees?
Each pool of carbon offsets sold represents 60% to 80% of the total amount sequestered. 20% is insurance against catastrophic loss. Most owners will also need to remove up to 20% of their total due to deviations within their inventory. As long as the loss is in no way due to deliberate actions or negligence on your part, the liability for loss is limited to that 20% reserve. If the reserve is not used at the end of the contract length, it becomes part of the pool and the offsets can be sold outright.
Q: What do I need to get started?
You will need an accurate, recent inventory of the entire property, including trees down to the 2-inch diameter class (conducted by an individual who has attended a Woodlands Carbon Inventory workshop); a forest management plan that meets the standard for and enrollment in the American Tree Farm System; membership in the Oregon Small Woodlands Association; and a willingness to adhere to a 15-year certified management commitment once enrolled.
Q: What does it cost to get started?
You may need to re-inventory your entire property to meet the standards for enrollment. Woodlands Carbon has a revolving loan fund available to help cover this cost and can deduct the amount from the sale of your carbon offsets, leaving you minimal or no out-of-pocket expenses. If you are a Certified Tree Farm or your forest management plan meets the standards of the American Tree Farm System, there are no costs associated with certification. Cost of membership in the Oregon Small Woodlands Association is based on acres owned. The current annual dues for a landowner with 70 acres are $135, with those owning less than 70 acres paying $85.
Q: How much does Woodlands Carbon charge for services?
Woodlands Carbon’s commission is a percentage based on sales and includes all accounting, auditing and trading fees. The landowner may be responsible for additional costs for verification or registration. The goal of Woodlands Carbon is to return 70% of carbon sales revenue to participating landowners.
Q: Okay, I am interested. What should I do next?
Landowners who are thinking about entering the carbon market should:
1. Develop or update your Forest Management Plan—have clear objectives. Link your style of management to the desire to improve the carbon sequestration and storage of your forest.
2. Get certified—most voluntary programs require sustainable forest management certification. Both individual and group American Tree Farm System certification is now recognized.
3. Attend a Woodlands Carbon workshop—designed to help you assess the potential for your family forest to earn yearly revenue from carbon offsets and what that commitment means to you in the future. Woodlands Carbon hosts a number of workshops throughout the year.