As global carbon markets continue to expand, companies and landowners of all sizes are now exploring the wider benefits of carbon credit programs. These markets were once weighted heavily toward regulatory purposes. Purchase of credits was motivated by compliance and the economics of carbon programs limited participation to only landowners with the largest areas of land. However, we’re now seeing growth in carbon credits purchased on a voluntary basis.
The main function of carbon programs is to generate revenue for the seller of carbon credits which the buyer then uses to offset their carbon emissions. This dynamic is driving interest in voluntary carbon credit programs from both forest owners and companies who are increasingly drawn to the rich co-benefits of carbon credits and the projects that generate them.
What Are Co-Benefits?
Carbon credit programs can have many positive environmental, social, and economic impacts beyond greenhouse gas emissions (GHGs) avoidance and removal. Because these programs are generally designed to preserve or restore ecosystems to absorb GHGs, they also often contribute to ecological improvements, community benefits, and new or alternative revenue streams or employment opportunities.
For example, a REDD+ project aimed at Reducing Emissions from Deforestation and forest Degradation in developing countries, would accomplish more than protecting a forest. It could create valuable jobs in the area, improve biodiversity, and protect local water quality. A DAC project (Direct Air Capture), meanwhile, might create new jobs but is unlikely to result in the same wider environmental co-benefits.
A recent survey by the Forest Foundation showed that 29% of respondents evaluate carbon programs and projects based on these kinds of co-benefits.
The Many Co-Benefits of Participating in Carbon Programs
Environmental Benefits
- Biodiversity: Carbon credit programs often aim to restore and preserve ecosystems that include diverse wildlife habitats. Reforestation and forest conservation projects, for example, protect and restore thriving and mature woodlands that act as homes for abundant wildlife, game animals, and threatened species of both flora and fauna. There’s also growing recognition of the vital connection between improved biodiversity and improved climate health.
- Soil Health Improvement: Certain program types, such as regenerative agriculture projects, can lead to improved soil health. For forest carbon sequestration, this means increased GHG storage not just in wood products, but in the fertile and carbon-rich soil of the forestland itself.
- Air Quality Improvement: Because carbon credit programs are focused on removing or preventing the emissions of GHGs, they can increase the absorption of aerial pollution by the land and have a positive impact on local air quality.
- Conservation of Water & Natural Resources: Projects focused on efficient irrigation or water management act to conserve water resources. Forest projects not only conserve timber, but allow standing forests to absorb and reduce the flow of nitrogen and other nutrients into freshwater habitats, thereby improving the quality of water flowing downstream.
Social Benefits
- Access to Clean Energy: Renewable energy projects can generate carbon credits through wind farms, solar installations, and hydropower that are designed for climate impacts beyond a business-as-usual scenario. These efforts have the co-benefit of making clean energy more viable and broadly accessible.
- Improved Public Health: Because carbon programs naturally act to improve air quality, they can reduce the pollution in the air we breathe.
- Community Engagement: Participation in carbon credit programs is a great way of promoting collaboration in the local community, as well as fostering innovation, and increasing transparency of efforts to combat climate change.
- Sustainable Development: The sale of carbon credits is an effective way to fund projects focused on sustainable development goals. At the same time, participating in carbon programs inherently supports a wide range of other public benefits for local communities, from increased access to clean water to sustainable diets and improved sanitation.
Economic Benefits
- Job Creation: Carbon programs can create many opportunities for both skilled and unskilled employment, such as for foresters engaged in conservation projects, workers who construct and maintain renewable equipment, or guides and hospitality roles tied to ecotourism opportunities.
- Education Opportunities: Participation in carbon programs, can incentivize the university research and education that drives further advancements in this area. The income from carbon projects also improves livelihoods and can open up educational opportunities.
- Income Diversity: Landowners who enroll plots in carbon programs can enjoy revenue streams that depend on healthy ecosystems. For instance, a family forest owner who defers harvests to generate forest carbon credits can lease hunting, camping, and fishing rights, allow eco-tourism, and gather non-timber products such as maple syrup or pine straw.
Support Healthy Ecosystems & Sustainable Development
Many of the above benefits of carbon credits and carbon programs are driving progress on the seventeen development targets in the United Nations’ Sustainable Development Goals (SDGs) for 2030. It’s never too late to get involved.
Landowners can take a closer look at the limitations and opportunities related to carbon programs to decide the right path forward for their land. Participating in a program such as LandYield can be a great way to make a difference for the planet while enjoying the benefits of a flourishing ecosystem and wildlife habitat.