Forestry officials with the Tennessee Department of Agriculture and the University of Tennessee Extension are urging forest landowners to become better informed when considering selling carbon credits to a trader or aggregator of carbon credits.

“The emerging carbon markets have the potential to encourage landowners to actively manage their land and keep forests as forests rather than losing this resource to other land uses,” said State Forester Steve Scott. “The Division of Forestry is interested in watching this market develop, but wants to advise landowners who are interested in getting involved to proceed with patience, caution and awareness.“

Forestlands naturally store carbon, a process known as carbon sequestration, that otherwise would be released into the atmosphere, causing a buildup of carbon dioxide and potentially contributing to climate change. Tennessee has an estimated 14 million acres of forestland, mostly in private, non-industrial ownership. Increased interest in using forested lands as a way to offset carbon emissions has fueled a new market for buying and selling carbon credits that is still in development, and speculative at best, according to state forestry officials.

According to the U.S. Environmental Protection Agency, carbon sequestration can not only help reduce or slow the buildup of greenhouse gases, but practices that aim to reduce carbon losses and increase sequestration generally enhance the quality of soil, water, air and wildlife habitat. Forest landowners with a stewardship plan, which has been third-party certified, are eligible to earn annual payments for this carbon storage from the Chicago Climate Exchange, which is currently the most notable carbon market in the U.S. Credible third-party forest certification systems in the U.S. include Sustainable Forestry Initiative (SFI), Forest Stewardship Council (FSC) and American Tree Farm (ATF).

A number of markets already exist at the national level to sell accumulated credits. However, the program is in its infancy, according to David Mercker, UT Forest Management Extension Specialist.

“Presently there are very few certified forests in Tennessee eligible to participate, and even fewer aggregators capable of marketing carbon,” said Mercker. “Participants should seek full disclosure of all potential benefits and risks prior to enrolling.”

Brokers, known as carbon aggregators, provide services to individual forest landowners to gain access to carbon markets. Services include enrolling forestland in the program, ensuring that wooded acres conform to market standards and that enough acres are accumulated (aggregated) to trade stored carbon in large blocks. A service fee covering administrative expenses associated with the management of the program is charged by the aggregator, and varies by aggregator.

“Because restrictions apply, only forest landowners with a serious and lasting commitment to long-term sustainable forest management should consider this program,” said Mercker.

“Sellers be advised,” said Scott. “Landowners should do their homework on this before they sell their credits.”

More information on carbon sequestration can be found on the following federal Web sites:

http://www.fs.fed.us/ecosystemservices/carbon.shtml

http://www.epa.gov/sequestration/