Royal Bank of Canada (RBC) has purchased carbon credits which are to be delivered through Chestnut Carbon’s portfolio of improved forest management (IFM) projects in the United States.
Through this purchase agreement, RBS is providing an injection of capital that will enable landowners participating in Chestnut’s project to maintain and improve the health of forests under their care while also meeting immediate financial needs.
The credits generated from Chestnut’s IFM portfolio represent pure carbon dioxide removal (CDR) sourced exclusively from privately owned and endangered forests across the United States.
By partnering with Chestnut, landowners are supported in adopting practices such as longer harvest rotations, retention of larger trees, strategic thinning, improved stand structure, and prescribed burns.
These activities, Chestnut shares, contribute to healthier forests with improved resistance to wildfires, drought, and other disturbances. To date, the company’s operations have enabled the conservation of 200,000 acres of U.S. forestland.
Chestnut Carbon’s IFM network approach
Chestnut’s approach includes establishing relationships with the landowners and performing land screening and due diligence, after which the company signs lease agreements, followed by onsite inventory surveys and annual verification and audit measurements.
These steps lead to the issuance of IFM carbon credits for sale, which bring in revenue for sharing.
In its four years of market activity, Chestnut has managed to establish a network of landowners located across 37 U.S. states.
Relevant: Chestnut Carbon Succesfully Completes Its Largest U.S. Tree Planting Operation To Date
Talking about what attracted the bank to this partnership with Chestnut, Brian Hong, Director of Environmental Markets Solutions Group at RBC, shared, “This project is compelling to us because it makes responsible forest stewardship economically viable for landowners while delivering environmental benefits at scale across the United States.”
On behalf of Chestnut Carbon, Chief Commercial and Operating Officer Brian DiMarino said, “Leading financial institutions continue to recognize that nature-based carbon removal is critical in addressing climate change. Lasting conservation happens when economic opportunity is aligned with responsible forest stewardship.”
Read more: Chestnut Carbon Issues First U.S. Improved Forestry Management Credits With Verra’s Removals Tag
