Forestry Carbon Assets under California AB 32: Current Business Practices, Future Viability and Ancillary Benefits

Abstract

The primary objective of this study was to conduct an encompassing analysis of current forestry carbon offset business practices under California A.B. 32. This study goes beyond the critiques of the forestry carbon offset approach and highlights current business practices, examines fringe benefits, and hypothesizes the viability for small and large landowners moving forward. ARB faces an issue when it comes to large and small landowners: to require immense reporting deters TIMOs and large landowner companies, while having such high transaction costs deters small land-owners from engaging in climate change mitigation tactics, but the asset proves itself to be a worthy investment going beyond climate change mitigation tactics and entering a realm of biodiversity conservation and improving community economic development. Thanks to an industry wide survey, the business practices of this newly developed asset are becoming clear and showcases future business strategy plays.