Quality of urban forest carbon credits

Abstract

While the urban forest is considered an eligible source of carbon offset credits, little is known about its market potential and the quality aspects of the credits. As credit suppliers increase in number and credit buyers become more interested in purchasing carbon credits, it is unclear whether and how urban forest carbon credits can perform relative to the other types of carbon credits available in the market. Delivering quality credits would be crucial especially in voluntary markets such as the U.S., where buyers are more likely to be committed to reducing their GHGs emissions and maintaining a positive public image, than just abiding by regulations. Utilizing the results of a nationwide survey of local governments, this study takes a first step toward evaluating the quality aspects of urban forest carbon credits. We conclude that the local municipalities and cities in the U.S., acting as sellers of carbon credits, have the resources and capacity to be competitive in carbon credit markets. In addition, they have capacity and resources to implement carbon projects that will meet the key quality criteria (e.g., additionality, permanence, and verification).