[Seattle] Regen Network, a technology company developing a global marketplace for earth's ecosystem assets, services, and data, has purchased all the city forest carbon credits currently available in the United States. The purchase is the largest and first-of-its-kind transaction and represents the carbon stored in 13 urban forestry projects across the country.
Regen Network purchased credits representing over 31,000 metric tons of carbon for a total purchase price exceeding $1 million. The price per credit was between $34 and $45 per metric ton. Regen Network intends to digitize the credits and offer them for sale through their blockchain platform in the coming months.
The sale price is among the highest ever paid for forest carbon credits. The most recent published pricing for global forest carbon credits in 2020 was between $2 and $10 per credit.
"The extraordinarily high price paid for these credits demonstrates the immense value of our city forests," said Doug McPherson of Otium Business Consulting who represented the projects in the sale. "This single purchase of all the currently available U.S. credits establishes these and future urban forest carbon credits, with their many impacts and their presence in cities, as a must-have component of any sustainability or carbon portfolio. Additional urban forest credits from these and other projects will be available in 2022 and future years.”
Regen Network’s mission is to align economics with ecology to reverse climate change through carbon removal that regenerates ecosystems.
“We were impressed with the rigor and transparency of the carbon protocols that underpin these credits,” said Sarah Baxendell, Director of Business Development at Regen Network. “As a blockchain-enabled company, we see the immediate potential of making these credits available to our partners in a fully transparent, efficient way. The direct environmental and social impacts give the credits a human face and story and we are confident they will be attractive to consumers seeking unique carbon offsets.”
The landmark transaction offers more than just environmental benefits.
Jad Daley, CEO of American Forests, the oldest national nonprofit conservation organization, said, "Urban forests stand at the center of carbon removal, social equity, public health, biodiversity, and positive community impacts where millions of people live, work, breathe, and recreate. These credits are a critical step toward financing equitable city forests for everyone."
The projects are in communities reaching over 20 million Americans. In Richmond, Virginia, two historic African American cemeteries will use proceeds from the sale to fund volunteer restoration activities that help strengthen the community’s understanding of the importance of its slave route past. In Des Moines, Iowa, the proceeds will support the planting of trees in formerly redlined communities with very little tree canopy and a workforce training program for local teenagers and young adults. In Chicago, the two projects are pilots in a regional carbon program being designed by the Chicago Region Trees Initiative.
Nature-based Climate Initiatives, a national provider of technical assistance in nature-based climate solutions, advised on the sale. "City and County budgets are just not able to keep up with tree loss. This national sale provides critical funding and a new funding strategy for local governments and nonprofits that are on the front lines of making communities both green and equitable," said Brett KenCairn, Executive Director of Nature-based Climate Initiatives.”
The credits were issued by City Forest Credits, a non-profit 501(c)(3) carbon registry dedicated solely to urban forest carbon. City Forest Credits and its national scientists and stakeholders have developed carbon protocols for both tree planting and tree preservation projects in cities and towns.
The funding from the carbon credit transaction will support city forest planting and preservation projects organized by these organizations and government entities:
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Allegheny Land Trust, Pittsburgh, PA
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City of Issaquah, Issaquah, WA
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Enrichmond Foundation, Richmond, VA
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Kendall County Forest Preserve District, Kendall County, IL
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King County, King County, WA
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Lake County Forest Preserve District, Lake County, IL
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Lookout Mountain Conservancy, Chattanooga, TN
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Mountains to Sound Greenway Trust , Shoreline, WA
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Treasure Valley Canopy Network, Boise, ID
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TreeFolks, Travis County, TX
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Trees Forever, Des Moines, IA
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Western Reserve Land Conservancy, Cleveland, OH
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Western Reserve Land Conservancy, Mansfield, OH
