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Carbon Credits on Private Lands in British Columbia

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DOI: 10.4236/lce.2012.34019    3,235 Downloads   5,426 Views   Citations

ABSTRACT

This study assesses the production potential of carbon credits on private land in Central British Columbiathrough pine forest plantation projects. This study identifies the quality characteristics for determining the quality standards for carbon credits, and then uses those quality characteristics along with the standardized procedure to assess the quality and quantity of carbon that can be fixed in forest projects and thus be registered on the carbon exchange as carbon credits or offsets for trading on per hectare basis. Using the Table Interpolation Program for Stand Yields (TIPSY) which is a tree growth simulation model, sites of various productivities (Site Index values of 24, 21, 18, and 12) in the PGTSA, BC, Canada were modeled to generate data related to stands of trees for timber volume, lumber production, and subsequent carbon credit/offsets generation. Using data and information from the industry and the Government of British Columbia Ministry of Forests and Range (BCMoFR), cost-related data for forest stand establishment and maintenance was generated. Using market pricing methodology for offsets in the over the counter (OTC) market, Internal Rate of Return (IRR) calculations were performed. The results of the study indicated that rate of return varied in the range of 0.27% to 0.51% over a period of 57 to 100 years. Only three out of sixteen modeled production scenarios indicated positive rates of return. Overall, the study concluded that sequestering carbon in forest projects on private land inPGSTA,BCis not restricted by any production quality criterion, but that it is financially unviable given the current costing and carbon offset pricing regimes.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

B. Deo, H. Donker and M. Schulz, "Carbon Credits on Private Lands in British Columbia," Low Carbon Economy, Vol. 3 No. 4, 2012, pp. 144-153. doi: 10.4236/lce.2012.34019.

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