In 2008 the primary greenhouse gas emitted by human activities in the United States was carbon dioxide (CO2), representing approximately 85.1 percent of total greenhouse gas emissions. The largest source of CO2, and of overall greenhouse gas emissions, was fossil fuel combustion; from 1990 to 2008 total emissions of CO2 increased by 16.1 percent. Some of these emissions were partly offset by terrestrial carbon sequestration (TCS). TCS is the process through which carbon dioxide from the atmosphere is absorbed by trees, plants and crops through photosynthesis, and stored as carbon in biomass (tree trunks, branches, foliage and roots) and soils. When professionals refer to carbon sinks, this is a reflection of these terrestrial ecosystems ability to absorb and retain carbon emissions. When land is tilled and trees are cleared, agriculture and forestry activities can also release CO₂ to the atmosphere. A carbon sink occurs when carbon sequestration is greater than carbon releases over some time period. In 2008 CO2 emissions were partly offset through TCS, around 13.5 percent of total emissions were sequestered.

The US EPA states that the potential to sequester additional carbon and reduce emissions of other greenhouse gases (GHGs) in agriculture and forestry is an important element for U.S. climate policy. They recommend a number of key practices to enhance sequestration and reduce other GHG emissions in U.S. through changes in cropland tillage, tree planting, changes in forest management, and forest preservation. Studies suggest that approximately 200 to 560 million metric tons of additional CO₂-equivalent units per year could be achieved through changes in agricultural soil and forest management, tree planting, and biofuel substitution. These particular results considered the incentive to improve land-use practices at prices of $10 and $50 per metric ton of additional carbon stored.

Carbon sequestration through conservation efforts is rapidly becoming a huge global business. The UN REDD Program is the United Nations Collaborative initiative on Reducing Emissions from Deforestation and forest Degradation (REDD) in developing countries. The Program was launched in September 2008 to assist developing countries prepare and implement national REDD+ strategies. REDD is an effort to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development. REDDgoes beyond deforestation and forest degradation, and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks. It is predicted that financial flows for greenhouse gas emission reductions from REDD+ could reach up to US$30 billion a year. Where is this $30 billion coming from? Carbon credit sales to industrialized nations and individual polluting industries through cap and trade regimes.

Cap and trade programs establish a limit on the total tonnage of emissions of a particular GHG that may be emitted in a single year, the “cap”. Based on these limits, permits are allocated to polluting industries. The “trade” aspect of the deal allows companies who are allocated emissions permits but have been able to reduce their emissions below their allotted amount to sell their credits to companies who emit GHG’s in excess of their permit. The program is designed to encourage research and innovation on the part of private corporations to reduce their emissions.  While the U.S. has yet to sign on to international cap and trade programs such as the Kyoto Accords, there have been successful U.S. cap and trade programs such as the Acid Rain Program, NOx Budget Trading Program and the Clean Air Interstate Rule.

Cap and trade programs also present a new financial opportunity for landowners as well as non-profit environmental groups. As carbon sequestration valuation becomes more sophisticated, it becomes easier to assign a carbon storage value to undeveloped lands including forests, wetlands and certain farmlands. These carbon sinks can then become certified through third party reviewers to sell carbon credits to polluters; essentially turning carbon sinks into carbon banks. This novel approach is proving to be very attractive to polluting industries looking for low cost approaches to offsetting their emissions. Rather than spend substantial sums on retrofitting old equipment and changing production methods companies are spending a fraction of the cost to collaborate with landowners and non-profit management agencies to establish conservation easements and preserves to offset their own pollution. For environmental groups and land owners this approach creates new financial opportunity for land conservation efforts and is driving significant private investment to NGO’s and new land management companies who facilitate the acquisition, measurement and verification of these carbon banks.

For example, in July of 2009 The Conservation Fund, a leading nonprofit organization dedicated to protecting land and water resources, and Delta AirElite Business Jets announced a comprehensive effort to offset the annual carbon dioxide (CO2) emissions of its headquarters offices in Cincinnati and a complementary initiative to help address the CO2 emissions associated with customer travel. A market leader in carbon sequestration, the Conservation Fund has restored 20,000 acres and planted 6 million trees which will capture an estimated 7.2 million tons of carbon dioxide equivalent from the atmosphere over their lifetime. Another example is the Trust for Public Land (TPL). TPL is currently reforesting nearly 9,000 acres in Louisiana’s Lower Mississippi Alluvial Valley for addition to the Tensas River National Wildlife Refuge to restore habitat and sequester carbon. The 2.5-million bottomland hardwood trees being replanted will capture more than 3.0 million tons of carbon dioxide from the atmosphere over the next 100 years. The plantings have been registered under section 1605(b) of the Energy Policy Act of 1992, the Department of Energy (DOE’s) Voluntary Greenhouse Gas Reporting Protocols. TPL is selling the carbon credits they are generating to underwrite more reforestation. Current purchasers of carbon credits from TPL projects include Entergy, Detroit Edison, Conoco-Phillips and Volkswagen of America. The revenue stream generated from carbon sequestration has the potential to drastically increase the amount of conservation land across the globe.

In addition to the non-profit sector there is also new opportunity for land management agencies in the private sector. To verify and monitor the efficacy of these conservation efforts third party reviewers are contracted to assure that these targets are met. For the TPL project in Louisiana, Environmental Synergy Inc. and Winrock International are providing planting and monitoring support. Ecosystem Restoration Associates (ERA), a Canadian firm specializing in forest-based carbon offset programs and project development, recently signed a deal with McCandless Ranch (MCR) in Hawaii to cooperate towards preserving and restoring Hawaii’s biological carbon sinks, through Improved Forest Management (IFM), Avoided Deforestation (AD) and Avoided Conversion (AC) types of carbon offset projects. For each project, ERA will provide financing for direct offset project costs and be responsible for preparing a Project Design Document (PDD) in accordance with an approved methodology and standard. Net revenues derived from the sale of carbon credits will be shared between ERA and MCR.

The new conservation for profit paradigm promises to dramatically change the global landscape. Never before has there been such financial opportunity in not developing land. This potential wellspring of cash flow to landowners, NGO’s and private management firms is going change the way we view and value land preservation. Now, when a municipality looks across the landscape they may decide that there is greater value in preserving their “empty” land than in the strip mall they were considering. Who knows, with its 60,000 plus online community, maybe one day APUS will be able to achieve carbon neutrality with the creation of an APUS Park and Preserve.

Useful Links

The Trust for Public Land- Carbon Credits

Environmental Defense Fund Cap and Trade Success Story

Conservation Fund Go Zero Program

EPA Clean Air Market Resources

EPA Carbon Sequestration FAQ’s