Green Star Royalties Acquires Portfolio of U.S. Forest Carbon Offset Royalties and Receives First Carbon Offset Delivery - Seite 3

Figure 1: Green Star's estimated annual carbon offsets and royalty revenues by investment

Foto: Accesswire

Improved Forest Management

IFM is a type of conservation project where the undertaken IFM practices increase carbon storage over a baseline, or a business-as-usual level. IFM projects can both increase net carbon stocks by sequestering carbon from the atmosphere (removal) through photosynthesis due to increased forest cover or maintained existing forest cover relative to the baseline and can reduce greenhouse gas emissions (avoidance) from reduced timber harvesting relative to the baseline. Acceptable IFM practices, including rotation extension, thinning, fire prevention practices, and changes in harvesting techniques, must be deemed allowable practices as per the projects' selected carbon registry methodology.

IFM projects form an important subset of nature-based solutions, a set of land management, conservation and restoration practices aimed at mitigating climate change, while also sustaining biodiversity and other ecosystem services. In the United States, timber harvesting is the most extensive disturbance across forestlands, with the vast majority of timber harvested annually coming from private lands. Consequently, improved forest and land management decisions can have a significant impact on the role of forests as a carbon sink. The removed and avoided carbon emissions as a result of IFM projects, when overseen by a carbon project developer and properly validated and verified through an existing carbon registry methodology, can result in the generation of carbon offsets, tagged as removal and avoidance offsets, respectively. The current market pricing for U.S. premium avoidance and removal carbon offsets is approximately $13-$15/t CO₂e and over $20/t CO₂e, respectively.

Royalty Projects

Project ACR 783 - The S&J Taylor Forest Carbon Project, Arkansas

Project ACR 783 is a registered and already-issuing project and represents approximately 18,000 acres of sustainably managed forestland across Southcentral Arkansas. This project is expected to generate approximately 1.5 million carbon offsets over the next twenty years. Green Star now owns a 20% Royalty on this project, which issued and sold its first carbon offsets in March 2024 with a second carbon offset issuance expected later in 2024.