September 29, 2009 Carbon Credits & Trees

Planting Trees for Carbon Credits May Be Collateralized With Insurance

Recent climate-change legislation has focused on a market which enables companies to buy and sell permits to discharge carbon dioxide.  An alternative method of complying with federal rules on greenhouse-gas emissions is through carbon offset, in particular tree planting.

What is Carbon Offset Tree Planting?

Carbon offset tree planting is the practice of planting trees in order to reduce carbon dioxide emissions  occurring somewhere else, in order to balance out the emissions that cannot be reduced.  The aim is to become climate-neutral.  Carbon offset using trees works because trees actually take the carbon out of the atmosphere.  There are several programs that assist landowners with the cost planting trees.  Some are through government organizations and others are private companies.

Carbon credits & trees: Carbon offset tree planting

In the event that collateral is required for your investment, the solution may be to acquire tree insurance.  So what are the implications for those of us who are looking to obtain carbon credits for trees planted? 

When Is Insurance Required In Order to Gain Carbon Credits for Trees?

If there exists the possibility of a reversal in the future of emission reductions, insurance must be held to protect against this situation.  An example of a potential risk that must be insured against is a forest fire.   

The fact is that through carbon credits for trees and carbon offset tree planting, each and every one of us can take action in order to combat global warming.  Let’s begin by discussing why one might consider carbon offset tree planting?

Why Consider Carbon Offset Tree Planting?

Carbon offset using trees is achieved by everyday people, businesses, even events such as weddings!  What are the motivations for carbon offset tree planting?

• Growing realization that we can each do our part to become climate-neutral by initiating a carbon offset program.
• Often easier to implement a tree planting project as part of a carbon offset program
• Ability to quantify planting and growing trees as a method of measuring carbon emissions
• Additional benefits of healthy forests such as soil enrichment, conservation of watersheds and increased biodiversity.

Future of Carbon Credits for Trees in the USA

The current government has placed greenhouse gas emissions as one of its top priorities. According to a recent Congressional Budget Office study, in 2012 carbon offsets could be a $60 billion dollar market.   For us, this means that we should start learning about the significance of this growing market and how it may affect our futures. 

In the coming days, we will discuss a similar topic, namely the Federal Tax Credit for planting trees and reforestation that many landowners have taken advantage of.