Carbon Credits, Offsets, and Sequestration

By Chris Slottee

California implemented a mandatory carbon credit program in 2006 targeting power plants, natural gas utilities, and other large industrial facilities or production sites. As of 2019, approximately $370 million worth of carbon credits have been sold by Alaska landowners or ANCs into the California market.

Boasting no fewer than 125 million forested acres (approximately 35 percent of the state’s territory), Alaska has supported a robust timber industry for more than 100 years. The forests are concentrated primarily in Southeast, home to the Tongass rainforest. However, since the ’90s, the timber harvest volume in Alaska has dropped, challenged by volatile global markets, logistical challenges, and lack of producible timber. Now, landowners across the state, particularly Alaska Native corporations (ANCs), have identified a new means of using timber resources for economic benefit. With renewed focus on combatting climate change with new technology, Southeast is favorably positioned to reap the benefits of carbon programs and initiatives. Here are four things that Southeast ANCs and landowners need to know.