It is undeniable that the global warming crisis has become an urgent issue for humanity, one that requires collective efforts to find a swift solution. One of the key tools used to reduce greenhouse gas emissions and support the sustainable conservation of natural resources is the “Forest Carbon Credit.” This mechanism integrates environmental, economic, and sustainable development concepts in a tangible and practical way. 

Forest Carbon Credit: Requirements to Know for Beginners

Forest carbon credit  is one of the key tools for mitigating global warming, utilizing the natural potential of forests to absorb carbon dioxide. Developing high-quality, transparent projects that are certified by credible organizations helps enhance the market value of forest-based carbon credits, paving the way toward long-term sustainability in environmental, economic, and social dimensions. 

What is Carbon Credit? 

It refers to the amount of greenhouse gases that each environmental project can reduce or sequester. Once verified and certified, these reductions can be traded on the carbon market. The carbon credit mechanism thus serves as a tool that enables organizations to offset their carbon emissions and achieve carbon neutrality goals. 

Forest Carbon Credit

It is a carbon credit activity generated from forest sector activities, such as

• Reforestation
• Forest Restoration
• Conservation of existing forest
• The cultivation of economic trees that absorb carbon.
• Reducing Emissions from Deforestation and Forest Degradation (REDD+)
  

These activities help absorb carbon from the atmosphere through the process of photosynthesis by trees. The amount of carbon absorbed can then be converted into carbon credits that can be traded in voluntary carbon markets, such as Thailand’s T-VER market.

Mechanism of Forest Carbon Credit

The mechanism of forest carbon credits (Forest Carbon Credit Mechanism) is a process that transforms activities related to carbon sequestration or the avoidance of greenhouse gas emissions from forest areas into carbon credit units. These credits can be sold or used to offset the emissions of other organizations or business sectors, in accordance with scientific principles and certification requirements, such as Thailand’s T-VER system or international standards like Verra (VCS) and the Gold Standard.

With the following key mechanisms 

1. Defining project types and activities in the forestry sector. Activities that can generate carbon credits in the forestry sector include: 

• Reforestation
• Forest Restoration
• Conservation of existing forest
• Reducing Emissions from Deforestation and Forest Degradation (REDD+)
• The planting of commercial trees that are capable of absorbing carbon.

2. Project Design

• Define the project area (e.g., community forest areas or private land).
• Prepare the Project Design Document (PDD).
• Specify the methodology for measuring the amount of carbon sequestered.
• Select a certified methodology, such as the T-VER Methodology. 

3. Monitoring and Calculation of Carbon

• Measure the amount of carbon sequestered by trees over time.
• Use biomass equations or average carbon content values per tree species.
• Calculate the equivalent amount of carbon dioxide gas (tCO₂e)

4. Third-party Verification

• The project must be verified for accuracy by an accredited Validation and Verification Body (VVB).
• Verify the reasonableness of the data, measurement methods, and reported results.

5. Issuance of Carbon Credits

• Once verified, the project will receive carbon credits (unit: tCO₂e).
• Credits can be registered in systems such as the T-VER Registry or the Verra Registry.

6. Trading or Offsetting

• Project owners can sell credits to companies seeking to offset their greenhouse gas emissions.
• Or use them to demonstrate environmental responsibility (such as in ESG reports).

Here are examples of forest carbon credit projects in Thailand

In Thailand, there are projects certified by the TGO under the T-VER system (Thailand Voluntary Emission Reduction Program), which is the country’s voluntary carbon credit system, such as:

• The Ban Khok Sawang Community Reforestation Project in Buriram Province
  is operated by the community in collaboration with government agencies and can absorb approximately 200 tons of CO₂e per year.
• The REDD+ project, which aims to reduce greenhouse gas emissions from deforestation and forest degradation while promoting conservation, sustainable forest management, and increasing carbon stocks in forests, has been piloted in northern Thailand with protected forests to prevent logging and enhance carbon sequestration from natural forest areas.

Forest carbon credit It is one of the key tools for addressing climate change sustainably. Not only does it help reduce greenhouse gases, but it also strengthens the green economy, supports communities, and conserves natural resources in the long term. With effective management, forest carbon credits can become a vital force for the country to more efficiently achieve its Net Zero goals. 

If you are looking for a carbon credit project consultant, we are ready to provide guidance on starting a project or conducting carbon footprint assessments for organizations and products. With deep experience across various industries, our team of energy and environmental experts can assist you from planning to carbon credit registration. Contact us now for an initial consultation. 

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