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CarbonCrop Team

Why should I use removals?

forested hills with clouds in sky

Increasing pressure to meet ambitious net-zero targets and finding effective ways to reduce emissions while maintaining operations is a significant challenge for businesses looking to decarbonise.


Carbon removals refer to methods that actively remove carbon from the atmosphere. Forest carbon removals, in particular, harness the power of trees and ecosystems to absorb and store carbon dioxide. While this might sound like it’s just about planting trees, forest carbon removals go beyond that. In fact, you may already have carbon removals happening on your land or within your supply chain that could play a key role in achieving your sustainability goals.


Here’s why you should consider carbon removals as part of your decarbonisation strategy:


Tackling Climate Change Head-On

Forest carbon removals leverage natural ecosystems to absorb CO₂ from the atmosphere. Forests store carbon in woody biomass, providing a natural and effective solution to mitigate global warming and reduce the impacts of climate change.


For perspective, a mature tree can absorb up to 26 kilograms of CO2 per year, and a single hectare of forest can offset the annual emissions of about 3 average cars. It’s not just about creating a few green patches — we’re talking about entire ecosystems that work year-round to clean our atmosphere.


In primary industries especially, there are some emissions which are tough to eliminate. Forest carbon removals can balance out those hard-to-reduce emissions from your supply chain or processing facilities, helping you move closer to net-zero without risking your reputation on offsets with uncertain origins.


Achieving Net-Zero Goals

Many countries, including New Zealand, have set ambitious net-zero targets. Carbon removals can help businesses comply with these regulations and avoid potential penalties for not decarbonising fast enough.


Compliance typically involves adhering to specific frameworks like the New Zealand Emissions Trading Scheme (ETS), which mandates that businesses account for their emissions and offset them accordingly. Meeting these obligations means you're not just legally compliant, but also contributing to national emissions reduction targets.


But why stop at compliance? Businesses can go further by engaging in the voluntary carbon market. This is where 'insetting' comes in — investing in carbon reduction activities within your own supply chain. It’s a great way to address those tricky residual emissions while demonstrating a serious commitment to decarbonisation.


Going the extra mile enhances your company’s reputation and aligns with the increasing expectations of stakeholders.


Enhancing Biodiversity and Ecosystem Services

Afforestation (creating new forests) and reforestation (replanting existing forests) projects do more than sequester carbon. They also restore habitats for wildlife, improving biodiversity. For instance, the Kaingaroa Forest in New Zealand, one of the largest planted forests in the Southern Hemisphere, not only absorbs significant amounts of CO₂ but also provides habitat for rare species like the North Island brown kiwi.


Healthy forests also bring other benefits, such as increased soil stability, improved water quality, and enhanced flood protection.


Long-Term Environmental Impact

Many carbon removal methods offer long-term or permanent storage of CO₂, making them a reliable way to offset emissions over extended periods. Forests, for example, can store carbon for centuries, far outlasting many technological solutions. However, forests need ongoing management to guard against risks like fires or disease, which could release stored carbon back into the atmosphere.


Market Opportunities


Carbon Credits 

Participating in carbon removal projects can generate carbon credits, which represent the amount of CO₂ removed from the atmosphere. One credit typically equals one metric tonne of CO₂ removed. These credits can either support your decarbonisation goals or be sold in carbon markets, providing an additional revenue stream.


As of the first half of 2024, forest-based carbon credits in New Zealand are trading at around NZ$50-$70 per unit. It's important to keep in mind that carbon credit prices fluctuate, offering different income opportunities depending on market conditions.


Meeting Consumer Demands 

Consumers are increasingly drawn to companies with strong environmental credentials, and forest carbon removals can help bolster brand loyalty while attracting eco-conscious customers.


Example: Agricultural Sector

New Zealand farmers can plant native forests on marginal lands, sequestering carbon while improving biodiversity and soil health. For instance, a vineyard in Martinborough has planted over 75,000 trees, which not only offset their emissions but also create a thriving ecosystem that supports their wine production.


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Forest carbon removals aren’t just about planting a few trees — they’re a powerful tool in your sustainability strategy. They help tackle climate change, get you closer to those tricky net-zero targets, and boost your green credentials with customers. The bonus benefits, like biodiversity and potential extra income from selling excess carbon credits, make forest carbon removals a compelling option.


Ready to see how forest carbon removals can transform your business? Explore how CarbonCrop’s platform can help you measure, manage, and monetise the carbon on your land or in your supply chain, unlocking new opportunities for revenue and resilience.


 

Glossary

Afforestation: The process of creating new forests by planting trees on land that has not been forested for a long time.

Biodiversity: The variety of plant and animal life in a particular habitat or ecosystem, often used as a measure of the health of an ecosystem.

Carbon Credits: Certificates representing the removal or reduction of one metric tonne of carbon dioxide or its equivalent in other greenhouse gases from the atmosphere.

Carbon Removals: Methods and processes that actively remove carbon dioxide (CO₂) from the atmosphere, often involving natural or technological solutions.

Carbon Sequestration: The process of capturing and storing atmospheric carbon dioxide, often through natural processes like photosynthesis in plants.

Insetting: Investing in carbon reduction activities within a company's own supply chain rather than buying offsets from external projects.

Regenerative Agriculture: Farming practices that restore and enhance soil health, increase biodiversity, and improve water cycles, often resulting in increased carbon sequestration.

Reforestation: The process of replanting trees in areas where forests have been cut down or destroyed.

Residual Emissions: Emissions that remain after all possible measures to reduce them have been implemented.

Riparian Planting: Planting vegetation along riverbanks and streams to protect water quality, reduce erosion, and provide habitat for wildlife.



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