The first auction for nature-based carbon credits in the US will take place in 2025

This week is the American Forest Foundation
(AFF) announced that it will hold the first carbon credit auction for its company
Family Forest Carbon Program (FFCP) in February 2025.

The American Forest Foundation Carbon Auction
– the first of its kind for a US Nature-Based Carbon Project – offers buyers a transparent and streamlined way to secure high-quality emission certificates
At the same time, we support rural communities and family forest owners.

More companies than ever are working to reduce their climate-damaging emissions, but there remains an urgent gap in the upfront capital needed to deliver high-quality carbon projects to help meet climate change targets and limit global temperature rise to 1.5° C to limit. Only globally 1.2 percent of the annual potential of nature-based solutions was tapped through the voluntary carbon market
(VCM). If this underinvestment continues, there is a risk that we will not finance enough projects to ensure a sufficient supply of high-quality credit to achieve our shared climate goals. An advance payment closes this gap.

AFF’s Carbon Auction will help scale the financing and deployment of nature-based solutions through a transparent, cost-effective approach – companies can access all due diligence resources in one central location over several weeks and then within a single time period Offer credits. weekly period in February. This approach also provides the Family Forest Carbon Program with the upfront funding it needs to deliver measurable carbon impacts and high-value environmental and community benefits.

“Family forest owners are willing to take the necessary climate action, and for companies, the time they invest in is crucial.” nature-based solutions
to achieve ambitious climate goals,” said AFF CEO Rita Hite. “This auction will be a ground-breaking opportunity for buyers to secure premium carbon credits while supporting family forest owners and rural communities.”

Tim Stout, a Vermont landowner participating in the Family Forest Carbon Program, stands in the forests he proudly manages. | Photo credit: American Forest Foundation

AFF says the Carbon Auction will transform the VCM by:

• Closing the climate finance gap – Companies often try to buy carbon credits at lower prices and pay for them upon delivery, but developers need upfront capital to jump-start their work. The auction will bridge this gap by offering hybrid terms and conditions where buyers pay a partial upfront payment to advance the project, while the balance is payable upon delivery.

• Streamlining the due diligence process – The auction format will address the transactional issues that buyers and developers often face when transacting carbon credits – such as the lengthy discovery process, the need to manage multiple sources of due diligence data and the lack of visibility into the carbon credits Market prices. This auction gives buyers access to due diligence resources and the ability to view anonymous competing bids in one central location.

• Link payments with impact – Companies make upfront payments through deposits tied directly to project milestones achieved – including registered landowners and hectares, as well as verification milestones. This type of down payment allows companies to tie their upfront investments to measurable impact on the community and the planet.

• Create incentives for early investments – Companies benefit from significant discounts on credits when paying in advance. This helps ensure buyers receive carbon credits at a competitive price, protecting against future price increases while securing long-term decarbonization strategies and reducing overall costs.

By providing some of the resources up front, buyers can ensure the Family Forest Carbon Program developed by AFF and The nature conservationhas the financing necessary to implement next-generation approaches to credit quality, resulting in loans that are highly value-added and also provide significant additional benefits.

“The FFCP is a core part of my urgent goal to protect our forests and mitigate climate change so that my grandchildren (and their generation) can enjoy this farm and the rest of Vermont as our family has enjoyed them for the last 80 years,” ” said Tim StoutDirector of Northam Forest Carbon and a Vermont Landowner participating in the Family Forest Carbon Program. “I want this farm to be a land of hope. Check out what small landowners can do to actively participate in climate protection and build resilient forests! It’s amazing how much we as landowners can achieve with the right support.”

“This groundbreaking auction will redefine how companies invest in nature-based solutions to address the threats of climate change and biodiversity loss,” he said Kevin MaddafordDirector of U.S. and Canadian Carbon Markets at The Nature Conservancy. “It will also increase access to the carbon market for U.S. family forest owners and support forest health.”

Those interested can find further details and the opportunity to register on the American Forest Foundation Carbon Auction website.