Considerations for Quality in Forest Carbon Investing - with Elias Ayrey and Mary Ignatiadis

Today, I’m joined by Dr. Elias Ayrey, co-founder and chief science officer, and Mary Ignatiadis, forest economics and policy expert at Renoster. In this conversation, we view forest carbon investing through the lens of change theory. We talk about the long-term opportunity cost of forest carbon projects, and what investors need to consider to ensure that these projects are truly a solution for integrated forest landscape improvement. We discuss the essential distinctions between objective setting in markets like the US versus the Global South, and considerations for large, institutionally owned land versus smallholder-owned land. We tackle the controversy around generating carbon credits from commercial plantation forestry head-on. And, of course, we learn about Renoster and its essential work in helping investors and carbon credit buyers do due diligence on the quality of forest carbon projects.We can't ignore all the economic evidence that creating demand for wood products results in more forest investment and therefore more carbon storage, and until carbon prices increase dramatically, could be a better way to ensure long term carbon storage than carbon credits alone.It's worth considering if an investor is looking specifically at the forest base and at nature-based climate solutions that you should really think about whether having multiple different kinds of forest investments might contribute to a greater overall impact.ResourcesRenosterLEAF CoalitionSymbiosis CoalitionTrees: American chestnut (Castanea dentata) & Eastern Hemlock (Tsuga canadensis)Production teamHost: Shauna Matkovich - The ForestLinkProducer and editor: Magdalena Laas - Unscripted CreativesTimestamps01:44Elias’ professional background & Renoster03:05Mary’s professional background & Renoster05:34Long term impacts should investors consider? Understand complete theory of change09:13But, what is the reality?11:28Investor coalitions13:44How would KPIs differ depending on the context, including small hold participants? (US market)16:48And any differences between the Global North and South?19:43Different KPIs in these regions?22:36Need both productive active timber management and forest carbon management25:30Balance between raising the value and bringing down costs30:10Percentage of these are avoided deforestation projects versus afforestation reforestation projects?34:47Questions of additionality and leakage are inherently financial36:08Carbon credits today37:32Applications of tools in Renoster’s work?39:04Project developers or buyers?39:28 Future of carbon markets43:05 Future of Renoster44:09Actionable adviceSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/SoundcloudSign up now for the ForestLink’s newsletter, where you’ll receive technical advice, reflections, and best-practice guidance to support you with your forest-linked investment strategy or business straight to your inbox. Hosted on Acast. See acast.com/privacy for more information.