The Carbon Value Conversation
Carbon Data Strategy Presents New Opportunities for Forestry in Georgia
Summer 2024
By John Casey & David Butler
Around the world, there are growing commitments from governments, corporations and investors to reduce, offset or eliminate emissions by 2030.
According to the United Nations Finance Initiative, more than $57 trillion in assets under management have been committed to net-zero emissions by 2050 and 42% of global Fortune 500 companies have committed to reduce or eliminate emissions by 2030.
Forestry-based investments represent a significant solution to at-scale carbon sequestration and avoided emissions through increased utilization of sustainable forest products in place of carbon-intensive products like fossil-fuel-based plastics, rare earth minerals, and concrete and steel. However, without clear, verifiable data to support the emissions-reducing power hidden in our working forests, unlocking meaningful investment in forests and forest products may be an unattainable goal.
Georgia is uniquely positioned to provide answers for what the market is demanding — from seedlings to sustainable solutions. As the leading state in forestry, Georgia boasts a booming economic sector and a naturally conducive climate for wood growth, paired with a culture of innovation and sustainable land management practices. With nearly 50% more wood grown than harvested, the state is well-positioned to capitalize on carbon commoditization.
Environmental, Economic Benefits Go ‘Hand in Hand’
The path to net zero emissions has triggered serious investments in forest carbon sequestration projects that give businesses the ability to offset emissions. However, the future carbon market is not solely focused on carbon credits. The potential for significant investments in forestry lies in the inherent sustainability of forest products, and the ability of wood fiber to unlock meaningful reductions in operational emissions (or embodied carbon).
“People believe that it’s always humans versus the environment or the economy versus the environment. With today’s modern forestry, that is just not the case,” said Ethan Breitling, vice president for communications and creative at the National Alliance of Forest Owners (NAFO). “Not only are the environmental and economic benefits mutually reinforcing, but they also go hand in hand. You cannot have one without the other. Modern forestry breaks the mold for how most people think about climate solutions and environmental solutions, because they are mutually reinforcing each other.”
Technological advancements toward value-added carbon will enable the development and use of wood-based products including fuel, bioplastics, electronic components, pharmaceuticals and more. The marketplace is in the driver’s seat, signaling a clear demand for these innovative wood products and climate solutions, along with data to back it all up. However, government, industry and stakeholders are trailing behind. As the market increasingly looks to forests as a solution, stakeholders are also seeking modernization and higher standards, particularly in the context of carbon data.
“The marketplace is essentially begging for forest carbon data and information and the ability to capitalize on the carbon found in Georgia forests,” said Breitling. “The market demands are inevitable. We have the opportunity as Georgia forest landowners to participate, and that can help deliver value to forests and forest products.”
Meeting market demands requires credible, high-quality carbon data, with consistency and transparency being essential for informed decision-making. To bridge the current gap, stakeholders must establish consistent market practices and data standards. Credibility hinges on a unified approach, demanding accelerated efforts to meet market needs and respond to dynamics effectively.
According to the United Nations Finance Initiative, more than $57 trillion in assets under management have been committed to net-zero emissions by 2050 and 42% of global Fortune 500 companies have committed to reduce or eliminate emissions by 2030.
Forestry-based investments represent a significant solution to at-scale carbon sequestration and avoided emissions through increased utilization of sustainable forest products in place of carbon-intensive products like fossil-fuel-based plastics, rare earth minerals, and concrete and steel. However, without clear, verifiable data to support the emissions-reducing power hidden in our working forests, unlocking meaningful investment in forests and forest products may be an unattainable goal.
Georgia is uniquely positioned to provide answers for what the market is demanding — from seedlings to sustainable solutions. As the leading state in forestry, Georgia boasts a booming economic sector and a naturally conducive climate for wood growth, paired with a culture of innovation and sustainable land management practices. With nearly 50% more wood grown than harvested, the state is well-positioned to capitalize on carbon commoditization.
Environmental, Economic Benefits Go ‘Hand in Hand’
The path to net zero emissions has triggered serious investments in forest carbon sequestration projects that give businesses the ability to offset emissions. However, the future carbon market is not solely focused on carbon credits. The potential for significant investments in forestry lies in the inherent sustainability of forest products, and the ability of wood fiber to unlock meaningful reductions in operational emissions (or embodied carbon).
“People believe that it’s always humans versus the environment or the economy versus the environment. With today’s modern forestry, that is just not the case,” said Ethan Breitling, vice president for communications and creative at the National Alliance of Forest Owners (NAFO). “Not only are the environmental and economic benefits mutually reinforcing, but they also go hand in hand. You cannot have one without the other. Modern forestry breaks the mold for how most people think about climate solutions and environmental solutions, because they are mutually reinforcing each other.”
Technological advancements toward value-added carbon will enable the development and use of wood-based products including fuel, bioplastics, electronic components, pharmaceuticals and more. The marketplace is in the driver’s seat, signaling a clear demand for these innovative wood products and climate solutions, along with data to back it all up. However, government, industry and stakeholders are trailing behind. As the market increasingly looks to forests as a solution, stakeholders are also seeking modernization and higher standards, particularly in the context of carbon data.
“The marketplace is essentially begging for forest carbon data and information and the ability to capitalize on the carbon found in Georgia forests,” said Breitling. “The market demands are inevitable. We have the opportunity as Georgia forest landowners to participate, and that can help deliver value to forests and forest products.”
Meeting market demands requires credible, high-quality carbon data, with consistency and transparency being essential for informed decision-making. To bridge the current gap, stakeholders must establish consistent market practices and data standards. Credibility hinges on a unified approach, demanding accelerated efforts to meet market needs and respond to dynamics effectively.
Legislation, Partnership Show a Path Forward
Currently, there are multiple collaborative efforts underway, led by government leaders and key forestry advocacy organizations across the nation.
In 2023, two key bills were introduced in Congress to address the urgent need for data consistency. If included in the Farm Bill, these policies will provide a significant basis to advance forest carbon data and analysis.
• The Forest Data Modernization Act, introduced by U.S. Senators Jon Ossoff (D-GA) and Bill Cassidy (R-LA), aims to update the U.S. Department of Agriculture (USDA) Forest Service’s Forest Inventory and Analysis (FIA) program to include forest carbon, and requires a timber-products output study and a national woodland-owner survey for data collection.
• The Timber Innovation for Building Rural Communities Act mandates wood product research as well as a platform for data on forest management’s impact on carbon emissions, sequestration and storage.
This spring, a coalition of national forestry organizations announced a plan to establish a cooperative relationship to support development and delivery of a publicly accessible platform for accessing and estimating forest and harvested wood carbon. The platform will use USDA Forest Entity-Level Guidance and other applicable measurement, monitoring, reporting and verification (MMRV) methodologies for the United States forest sector.
The coalition unites several key organizations, including the Research and Development branch of the U.S. Forest Service, the U.S. Endowment for Forestry and Communities, the American Forest Foundation (AFF), NAFO, the American Wood Council (AWC), the Hardwood Federation, the Decorative Hardwoods Association (DHA), and the National Wooden Pallet and Container Association (NWPCA).
“This platform will allow the sector to report on its carbon emissions in a unique and comprehensive way for the entire forestry supply chain, which has not been done anywhere yet,” said Michael Goergen, vice president for innovation at the U.S. Endowment for Forestry and Communities. “This will be the first time that any sector has been able to report on its carbon emissions in any country. The U.S. forest sector is the first in the industrial sector that is able to do this.”
Currently, there are multiple collaborative efforts underway, led by government leaders and key forestry advocacy organizations across the nation.
In 2023, two key bills were introduced in Congress to address the urgent need for data consistency. If included in the Farm Bill, these policies will provide a significant basis to advance forest carbon data and analysis.
• The Forest Data Modernization Act, introduced by U.S. Senators Jon Ossoff (D-GA) and Bill Cassidy (R-LA), aims to update the U.S. Department of Agriculture (USDA) Forest Service’s Forest Inventory and Analysis (FIA) program to include forest carbon, and requires a timber-products output study and a national woodland-owner survey for data collection.
• The Timber Innovation for Building Rural Communities Act mandates wood product research as well as a platform for data on forest management’s impact on carbon emissions, sequestration and storage.
This spring, a coalition of national forestry organizations announced a plan to establish a cooperative relationship to support development and delivery of a publicly accessible platform for accessing and estimating forest and harvested wood carbon. The platform will use USDA Forest Entity-Level Guidance and other applicable measurement, monitoring, reporting and verification (MMRV) methodologies for the United States forest sector.
The coalition unites several key organizations, including the Research and Development branch of the U.S. Forest Service, the U.S. Endowment for Forestry and Communities, the American Forest Foundation (AFF), NAFO, the American Wood Council (AWC), the Hardwood Federation, the Decorative Hardwoods Association (DHA), and the National Wooden Pallet and Container Association (NWPCA).
“This platform will allow the sector to report on its carbon emissions in a unique and comprehensive way for the entire forestry supply chain, which has not been done anywhere yet,” said Michael Goergen, vice president for innovation at the U.S. Endowment for Forestry and Communities. “This will be the first time that any sector has been able to report on its carbon emissions in any country. The U.S. forest sector is the first in the industrial sector that is able to do this.”
Tools to Capture Key Data on Carbon
The coalition aims to develop six new tools that will revolutionize the forest sector’s ability to track and report comprehensive carbon data, enabling consistent holistic reporting at three starting points: the landowner, manufacturer and end-user.
1 Embodied Carbon Tool This will combine emissions data associated with materials or construction processes of manufactured wood products available in published Environmental Product Declarations (EPDs), with wood product flows provided by the USDA Entity-Level Guidance for greenhouse gas emissions to make it possible to access embodied carbon values using a variety of starting points (a harvested log, a manufactured product or as part of a broader project, such as a whole building). The data would reflect geographical parameters and a broad range of forests and product types.
2 Displacement Factor Tool This will use published displacement-factor values found in the USDA Entity-Level Guidance to calculate the substitution benefits of wood products compared to fossilintensive, mineral-based systems. The tool would make it possible for a user to compare the carbon impact of a log, wood product or the end use to alternatives.
3 Forest Carbon Inventory Tool This will allow landowners to convert species- and stand-level data to carbon stocks, including above- and below-ground pools, and to standardize reliable forest carbon reporting.
4 Landowner Carbon Inventory Tool This will provide landowners customizable look-up tables for smaller area estimations, using FIA data.
5 Land Carbon Regional Accounting Factor Tool This will enable landowners, manufacturers, architects, engineers and other end users to use FIA data to measure carbon-stock change across a region or wood basket, along with the amount of harvest in the same region.
6 Harvested Wood Products (HWP) Carbon Tool This will enable landowners, manufacturers and other end users to quantify carbon storage in wood products over a 100-year timeframe, using the query tables in the USDA Entity-Level Guidance in an accessible format.
The USDA has established a methodology for reporting carbon-level emissions via their Entity-Level Guidance, which will inform the development of these tools. The public-private partnership between the coalition and USDA underscores a unique and essential unification of the industry, with the sector coming together to tell its story.
“I don’t think there has ever been a time when we could look at this and go ‘Wow, everyone really is coming together!’ It’s pretty wild in that sense,” Goergen said. “Overall, the platform helps position the forest sector as both the leader in transparency about what we are doing in the forest and with forest products, and also as a leader in providing solutions for climate change through carbon sequestration.”
Tracking With Blockchain
Adding to transparent data efforts, the U.S. Endowment for Forestry and Communities is also focused on developing a method of tracking forest carbon through the blockchain. And no, we’re not talking about cryptocurrency.
“Blockchain can be used to create a transparent and immutable ledger that records every transaction within a forest product’s supply chain and that movement, starting from the point of origin to the final destination, including the end user,” said Teal Edelen, the Endowment’s program officer. “Each stage of the supply chain can be recorded as a block on that blockchain, ensuring the entire journey of that product is traceable from the beginning to the end.”
This digital ledger will serve as a public record of transactions related to forest carbon. Once completed, transactions cannot be altered and will constitute a permanent record of how carbon is being transacted. That includes everything from carbon that is being stored in wooded cells to emissions generated throughout the supply chain. Using the smart contract system within blockchain, the calculation and verification of carbon emissions at each stage can be automated.
Blockchain will also serve to facilitate trading, specifically for forest carbon-offset credits. Companies can earn credits by sequestering carbon through sustainable forestry practices or reducing emissions through efficient transportation methods. These credits can be bought or sold on a blockchain-based marketplace.
Everyone in the supply chain, from producers to retailers to consumers, will be able to access this data to make informed decisions on the carbon footprint of a forest product.
“The demand is growing,” said Edelen. “People want to know what the carbon footprint of a certain building is, and with this technology, it can be as simple as having a QR code that somebody can scan with their phone and immediately bring up the carbon footprint.
Blockchain-enabled platforms can really empower consumers with their choices by providing them with access to that granular information.” Participation in the blockchain platform is voluntary. Once complete, the platform — called Forest Trust — will be a mobile application that will put the entire supply chain history, including carbon data, at the fingertips of consumers.
Unlocking Value for the Entire Supply Chain
Data is at the heart of the forest sector’s ability to capitalize on potential new investments in forests and forest products. The development of these innovative technologies by public and private industry partners presents a unique and exciting opportunity for the forestry sector to position itself as a transparent and informed leader in the global effort to achieve carbon neutrality. “
Meaningful investment in Georgia and asset appreciation for our forests will only be realized when we are confident in telling our story for investors and consumers,” said Andres Villegas, president and CEO of the Georgia Forestry Association. “These national efforts to provide a data platform for our sector have the ability to build trust and credibility with investors as the market for ‘green’ solutions continues to grow.” ■
John Casey is a strategic communications professional who supports clients through the art of storytelling. In his downtime, John can be found hunting and fishing on his family’s centennial farm in Northwest Georgia.
David Butler is a journalist with more than 20 years of professional journalism experience. His stories and his opinion columns have earned him state and regional awards. David lives in northeast Georgia with his wife and two dogs.
The coalition aims to develop six new tools that will revolutionize the forest sector’s ability to track and report comprehensive carbon data, enabling consistent holistic reporting at three starting points: the landowner, manufacturer and end-user.
1 Embodied Carbon Tool This will combine emissions data associated with materials or construction processes of manufactured wood products available in published Environmental Product Declarations (EPDs), with wood product flows provided by the USDA Entity-Level Guidance for greenhouse gas emissions to make it possible to access embodied carbon values using a variety of starting points (a harvested log, a manufactured product or as part of a broader project, such as a whole building). The data would reflect geographical parameters and a broad range of forests and product types.
2 Displacement Factor Tool This will use published displacement-factor values found in the USDA Entity-Level Guidance to calculate the substitution benefits of wood products compared to fossilintensive, mineral-based systems. The tool would make it possible for a user to compare the carbon impact of a log, wood product or the end use to alternatives.
3 Forest Carbon Inventory Tool This will allow landowners to convert species- and stand-level data to carbon stocks, including above- and below-ground pools, and to standardize reliable forest carbon reporting.
4 Landowner Carbon Inventory Tool This will provide landowners customizable look-up tables for smaller area estimations, using FIA data.
5 Land Carbon Regional Accounting Factor Tool This will enable landowners, manufacturers, architects, engineers and other end users to use FIA data to measure carbon-stock change across a region or wood basket, along with the amount of harvest in the same region.
6 Harvested Wood Products (HWP) Carbon Tool This will enable landowners, manufacturers and other end users to quantify carbon storage in wood products over a 100-year timeframe, using the query tables in the USDA Entity-Level Guidance in an accessible format.
The USDA has established a methodology for reporting carbon-level emissions via their Entity-Level Guidance, which will inform the development of these tools. The public-private partnership between the coalition and USDA underscores a unique and essential unification of the industry, with the sector coming together to tell its story.
“I don’t think there has ever been a time when we could look at this and go ‘Wow, everyone really is coming together!’ It’s pretty wild in that sense,” Goergen said. “Overall, the platform helps position the forest sector as both the leader in transparency about what we are doing in the forest and with forest products, and also as a leader in providing solutions for climate change through carbon sequestration.”
Tracking With Blockchain
Adding to transparent data efforts, the U.S. Endowment for Forestry and Communities is also focused on developing a method of tracking forest carbon through the blockchain. And no, we’re not talking about cryptocurrency.
“Blockchain can be used to create a transparent and immutable ledger that records every transaction within a forest product’s supply chain and that movement, starting from the point of origin to the final destination, including the end user,” said Teal Edelen, the Endowment’s program officer. “Each stage of the supply chain can be recorded as a block on that blockchain, ensuring the entire journey of that product is traceable from the beginning to the end.”
This digital ledger will serve as a public record of transactions related to forest carbon. Once completed, transactions cannot be altered and will constitute a permanent record of how carbon is being transacted. That includes everything from carbon that is being stored in wooded cells to emissions generated throughout the supply chain. Using the smart contract system within blockchain, the calculation and verification of carbon emissions at each stage can be automated.
Blockchain will also serve to facilitate trading, specifically for forest carbon-offset credits. Companies can earn credits by sequestering carbon through sustainable forestry practices or reducing emissions through efficient transportation methods. These credits can be bought or sold on a blockchain-based marketplace.
Everyone in the supply chain, from producers to retailers to consumers, will be able to access this data to make informed decisions on the carbon footprint of a forest product.
“The demand is growing,” said Edelen. “People want to know what the carbon footprint of a certain building is, and with this technology, it can be as simple as having a QR code that somebody can scan with their phone and immediately bring up the carbon footprint.
Blockchain-enabled platforms can really empower consumers with their choices by providing them with access to that granular information.” Participation in the blockchain platform is voluntary. Once complete, the platform — called Forest Trust — will be a mobile application that will put the entire supply chain history, including carbon data, at the fingertips of consumers.
Unlocking Value for the Entire Supply Chain
Data is at the heart of the forest sector’s ability to capitalize on potential new investments in forests and forest products. The development of these innovative technologies by public and private industry partners presents a unique and exciting opportunity for the forestry sector to position itself as a transparent and informed leader in the global effort to achieve carbon neutrality. “
Meaningful investment in Georgia and asset appreciation for our forests will only be realized when we are confident in telling our story for investors and consumers,” said Andres Villegas, president and CEO of the Georgia Forestry Association. “These national efforts to provide a data platform for our sector have the ability to build trust and credibility with investors as the market for ‘green’ solutions continues to grow.” ■
John Casey is a strategic communications professional who supports clients through the art of storytelling. In his downtime, John can be found hunting and fishing on his family’s centennial farm in Northwest Georgia.
David Butler is a journalist with more than 20 years of professional journalism experience. His stories and his opinion columns have earned him state and regional awards. David lives in northeast Georgia with his wife and two dogs.
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Georgia Forestry Magazine is published by HL Strategy, an integrated marketing and communications firm focused on our nation's biggest challenges and opportunities. Learn more at hlstrategy.com
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