Dublin, April 18, 2025 (GLOBE NEWSWIRE) -- The "North American Forestry Outlook" report has been added to ResearchAndMarkets.com's offering.
The North American forestry carbon market is experiencing a period of remarkable growth and evolution, with various developments shaping the industry. Improved Forest Management (IFM) projects have seen a sharp increase with an average annual growth of 77% in issuances since 2021. This uptick signifies a robust interest from corporations in high-quality, regionally sourced forestry offsets, which are essential in fulfilling their climate goals.
Voluntary and Compliance Segments
The market is divided into voluntary and compliance segments, each with distinct trends and outlooks. In the voluntary domain, North American IFM credits have commanded a price premium due to their high integrity and regional preference, setting them apart from international credits. Meanwhile, the compliance market, including the influential California Cap-and-Trade Program, is expected to witness increased demand and retirements as legislative changes come into effect.
Emerging Markets and Opportunities
Jurisdictions such as Washington, Alberta, the Canadian Federal OBPS, and Mexico are honing their forestry offset protocols, presenting new avenues for project developers and credit purchasers. Simultaneously, a notable trend of voluntary retirements of compliance-grade offsets suggests corporations' drive toward greater credibility in their climate commitments.
Supply and Demand Outlooks
Looking at the supply side, forecasts predict that IFM credit issuances may peak by the decade's end, while Afforestation, Reforestation, and Revegetation (ARR) projects exhibit a steady ascension. Estimates indicate that nearly 20 million voluntary forestry credits will be issued for the 2025 vintage, with a surge expected by 2028.
Market Tightening and Forecasts
In terms of the compliance market characterized by California Carbon Offsets (CCOs), demand is set to surpass supply after 2029, suggesting a tightening market. Market indicators show that CCOs will gradually evolve into more of a seller’s market throughout the 2020s.
Identified Risks and Strategic Recommendations
As the region's forestry carbon market matures, stakeholders must navigate political, regulatory, legal, and operational risks. These challenges underscore the need for a strategic approach to the market that contemplates regulatory frameworks, sector standards, and market volatility.
Conclusion and Market Significance
The future trajectory of North American forestry offsets has critical implications for the broader transition to a low-carbon economy. The increasing convergence of compliance and voluntary sectors, together with the heightened demand for reliable offsets, signals key opportunities for market participants.
By engaging with evolving policies and market trends strategically, North American forestry initiatives can contribute significantly to climate change mitigation and sustainable forest management.
Key Topics Covered:
Introduction
- North American Forestry as a Specialized Submarket within the Global
- Carbon Credit Landscape
NA Forestry in the VCM
- Historical Trends
- Supply
- IFM methodologies - Tabular Deep-Dive
- ARR methodologies - Tabular Deep-Dive
- Demand
- Bank
- Analyst's Take
- New Developments
- CCP Eligibility
- SBTi vs ISO
- Modelling Methodology
- Existing Projects
- Pipeline Projects
- Modelling Results
North American Compliance Offsets
- Interactive Effects Between Compliance and Voluntary Carbon Markets
- Forestry California Carbon Offsets (CCOs)
- Historical Trends
- CCO Forestry Market Outlook
- Modelling Results for Quebec Closes Offsets
- Forestry Washinton Carbon Offsets (WCOs)
- Federal OBPS Mechanism and Offset System
- IFM protocol under the Federal OBPS
- Alberta TIER
- British Columbia OBPS
Buy-side Perspective
- Key Drivers
- The evolving landscape - standards and regulations for voluntary buyers
- Media reporting & reputational threats
- Why the premium? Unpacking buyer preferences for local forestry offsets
- Evaluating the removals trend
Navigating the Risks of Forest Carbon Projects in North America
- Types of Risk
- Political and Regulatory Landscape
- Legal and Revocation Risks
- Operational Challenges
- Market Volatility
- Accessibility on the Supply Side
- Mitigating the Risks
For more information about this report visit https://www.researchandmarkets.com/r/cln4p0
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