What are carbon credits?
The Emissions Trading Scheme (ETS) allows landowners with eligible forest of any type to earn carbon credits in return for storing carbon.
For forestry investors carbon trading can provide an additional income stream while their forests grow.
It’s a very different model of investment, with owners gaining a return without felling, shipping or selling their forests. This changes the face of traditional forestry and allows for investment in a better environment.
Carbon credits from forests can be used in a range of ways:
- To generate annual cashflow
- As an investment
- To offset emissions from agriculture or energy use
- As a hedge against future carbon prices.
You could be banking carbon credits if you have land that fits any of these criteria:
- Land planted in trees in 1990
- Land farmed in 1990 that has since been planted in trees (exotic or native)
- Scrub or regenerating forest.