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.
Trees: American chestnut (Castanea dentata) & Eastern Hemlock (Tsuga canadensis)
Host: Shauna Matkovich - The ForestLink
Producer and editor: Magdalena Laas - Unscripted Creatives
01:44
Elias’ professional background & Renoster
03:05
Mary’s professional background & Renoster
05:34
Long term impacts should investors consider? Understand complete theory of change
09:13
But, what is the reality?
11:28
Investor coalitions
13:44
How would KPIs differ depending on the context, including small hold participants? (US market)
16:48
And any differences between the Global North and South?
19:43
Different KPIs in these regions?
22:36
Need both productive active timber management and forest carbon management
25:30
Balance between raising the value and bringing down costs
30:10
Percentage of these are avoided deforestation projects versus afforestation reforestation projects?
34:47
Questions of additionality and leakage are inherently financial
36:08
Carbon credits today
37:32
Applications of tools in Renoster’s work?
39:04
Project developers or buyers?
39:28
Future of carbon markets
43:05
Future of Renoster
44:09
Actionable advice
Nature by MaxKoMusic/Soundcloud
Sopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud
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