Afforestation/Reforestation (ARR) Carbon Credit Prices

Afforestation and Reforestation are two of the most popular approaches to reduce CO2 in the atmosphere while providing additional benefits to ecosystems and communites. You can find their carbon credit prices in the chart provided by Viridios AI above, while the guide below provides answers to some of the key question about them.

What is reforestation?

Reforestation refers to the process of replenishing tree cover after the loss of a forest through natural or man-made causes. These can include wildfires, pest and disease outbreaks, clearing of forest land for agriculture or urban construction.

Reforestation involves determining the optimal species for the particular project, transplanting saplings grown in nurseries and the subsequent care to maximize their survival and growth.

What is afforestation?

Afforestation is the process of planting trees in an area that hasn't previously had tree cover (or there is no record of one). Often this happens in desert regions, areas that have been used for grazing and farmland that no longer provides enough yield.

What are reforestation and afforestation carbon credits?

This type of carbon credit can be generated from reforestation or afforestation projects that sequester carbon dioxide. One credit is equal to one ton of sequestered CO2, after measurement from a certifiying organization.

What does ARR carbon credits stand for?

The ARR abbreviation is often used to group together three types of activities and the respective carbon credits they generate. It stands for:

Afforestation - the creation of new forests

Reforestation - the replanting of forest that was cut down

Revegetation - the replanting of trees and rebuilding of soil composition on degraded lands, usually from farming.

How much are forest carbon credits worth?

Like any market, supply and demand determine the price of blue carbon credits. Factors like location, ecosystems and the involvement of the local community.

At the time of writing (April 2024) the six-month range of average prices according data provider Viridios AI has been $10.74 and $17.14.

How many trees does it take to absorb 1 ton of CO2?

The capacity of trees can vary quite widely when it comes to absorbing CO2. Though different ranges and opinions exist, there is a broad consensus that the average volume one tree can store per year is 167kg (368 pounds).

This means that you would need six fully developed trees to store 1 ton of carbon dioxide.

What is the world's largest afforestation project?

The "Green Great Wall Initiative" stands as the most extensive afforestation endeavor globally. Stretching over 7,775 kilometers (4,831 miles) in length and spanning 15 kilometers (9 miles) in width, this initiative aims to establish a regenerated landscape across Sub-Saharan Africa, from Senegal in the west to Djibouti in the east, encompassing the Sahel region.

What is the world's largest reforestation project?

The world's largest reforestation project is being developed in Brazil and has the goal of planting 73 million trees. Based in the Amazon region it covers over 30,000 hectares and is managed by U.S. NGO Conservation International.

Unfortunately, as of May 2023 the project had achieved only around 20% of its target due to political uncertainty and damages caused by wildfires which have become more frequent in and around the Amazon.

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