The voluntary carbon market and the forestry sector: Opportunities and challenges ahead

Companies in the forestry and pulp and paper sectors have the potential to become relevant players in the global voluntary carbon credit market as reputable issuers of nature-based solution credits. At a time when the supply of reliable and robust carbon credits is scarce and buyer trust is diminishing, this sector could develop projects by leveraging its know-how in land and forest management and its institutional strength, especially through partnerships and alliances with other entities and with farmers. However, these companies will need to adapt and build projects outside of their day-to-day operations to satisfy the additionality and permanence principles in an increasingly challenging voluntary carbon credit market ecosystem. Strict and evolving methodologies, nascent legislation at a national and international level, and limited capacity for accreditation and certification of credits from reputable third parties are just some of the hurdles the sector will need to overcome.