Stream 1 – Revenue from Carbon projects

An economic analysis was done on how much old-growth forests on BC’s coast are worth in terms of carbon credits. The analysis found that carbon projects are financially viable alternatives to timber harvesting especially when they are combined with other sources of revenue that these forests can provide, such as tourism and recreation1. Examples of coastal BC carbon projects include the Great Bear Rainforest (Coastal First Nations – Great Bear Initiatives’ carbon credits program) and Cheakamus Community Forests. Mosaic Forest Management recently announced a carbon project on Vancouver Island in conjunction with various nations. A website has been developed by the BC Assembly of First Nations and Ecotrust to provide support for First Nations developing carbon projects.

For a carbon project to even start, these prerequisites must be in place for a First Nations community:

  • the legal rights to the carbon,
  • a land stewardship plan that is different than business-as-usual, and
  • the ability to provide consistent stewardship through stable governance.

Carbon projects take place on specified areas of land. A carbon project’s activities result in more carbon being stored by the trees and in the soil than if these same areas were logged, or there was no change from previous activities on the land. Carbon project activities might include protecting forests at risk from logging, (where the carbon stored is very high, particularly old-growth forests); restoring land through traditional practices; or reducing the annual allowable cut through exclusion of ecologically sensitive sites and habitat for threatened and endangered species, increased rotations ages, and partial cut logging practices.

Learn more about Carbon here: See Carbon 101 and Carbon 201 in the Carbon Stewardship Workshop.

Buyers of carbon include local and provincial governments, not-for-profit organizations, businesses and individuals. Buyers can purchase carbon credits on a voluntary basis or to comply with a law called compliance credits. Buyers essentially reimburse stewards of the carbon (the First Nation or society representing that Nation who hold the land and the rights to the carbon on that land) to take the actions needed to steward the carbon stocks (forests) into the future.

What is needed to develop a carbon project on a particular area of land?

  1. There must be a clear assignment of rights to the forests/carbon. First Nations can demonstrate that through Reconciliation Agreements and Indigenous Atmospheric Benefit Agreements (See Steps 1 and 2) 
  2. There must be a land stewardship plan that describes what is called the “project line”, for example, a set of proposed activities on the land into the future. This is different from the “business as usual” or “baseline” practices set by provincial plans. Both need to be modelled for the project. 
  3. The project requires the measurement of carbon above and below ground, also called “carbon pools,” which form the start of the baseline measurements for the carbon values. 
  4. The difference between the baseline carbon pools and project line modelling is calculated by the tonnes of carbon prevented from entering the atmosphere. This determines the feasibility of a project. (See the economic reports of carbon projects by Seaton, Morton et al.) 
  5. Choose a standard or protocol from a range of protocols that best suit your Nation’s situation. 
  6. Establish long standing purchase agreements with local governments, unions, companies, etc. who share the values and a commitment to the place and to the community. 
  7.  Validate the project. 
  8. Once the projects is validated, land stewards start the work according to what the stewardship plan proposes for the next 100 years. 
  9. The First Nation receives funding once each year or at five-year intervals with each verification of carbon protected.
1. A study that compared the value to society of full protection of old growth with other management options in a subset area, ( i.e., within a 35 km radius of Port Renfrew) concluded that society would be better off by $90 million over a 100-year time frame if trees older than 250 years were fully protected. The greatest contributions are expected to come from carbon, forestry, and tourism/recreation/education. In coastal BC, more broadly the carbon credit revenue over 10 years with a management system that protected old growth was estimated to be $128B, while under the current logging regime the forest industry would owe $209B if they were liable for their forest carbon emissions. A study by Robert Seaton found the value of carbon credits associated with old growth forests protection in a subset area (i.e., Fairy Creek watershed) was comparable to that from timber harvesting.
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