In a significant step toward integrating environmental preservation with economic sustainability, Oregon’s Department of State Lands has signed a development agreement to enter the Elliott State Forest into the voluntary carbon market for the next 40 years. The nearly 83,000-acre forest, located near Coos Bay, will be managed to capture and store greenhouse gases, with the aim of reducing climate change impacts while generating revenue from carbon credits. The initiative is Oregon’s first foray into using a state-owned forest for carbon sequestration, making it a notable move for state-managed lands in the western United States.
The project, which involves carbon brokerage and development firm Anew Climate, headquartered in Houston with additional offices in Salt Lake City and Calgary, represents an innovative approach to climate action in Oregon. The Elliott State Forest is set to be listed in the American Carbon Registry, the world’s first voluntary greenhouse gas registry. Michigan remains the only other state that has fully integrated state forests into the carbon credit system, with two state forests generating credits through Anew Climate in collaboration with the American Carbon Registry.
Following Thursday’s agreement, the Department of State Lands and Anew Climate will begin an intensive process to evaluate the carbon-capturing potential of the forest. This includes inventorying the current carbon levels and estimating how much additional carbon the forest could sequester compared to standard logging practices in neighboring areas. The assessment will involve independent third-party verification to ensure the data is reliable and meets carbon market standards. Once certified, carbon credits will be awarded and made available on the voluntary market, where companies can purchase them as part of their efforts to offset their own emissions.
Carbon credits from the Elliott State Forest will be available to companies participating voluntarily in the carbon market rather than through regulatory mandates. These companies seek carbon credits to demonstrate their commitment to reducing their environmental footprint. The November analysis from Anew Climate projects that the forest could capture up to 435,000 metric tons of carbon dioxide over the next four decades, which is roughly equivalent to removing 100,000 gas-powered vehicles from the road for an entire year. This could generate as much as $9 million in carbon credits over the next decade, offering Oregon a financial incentive to continue its commitment to climate action.
While this project has been heralded as a pioneering effort, it has also attracted scrutiny from critics concerned about the voluntary carbon credit market’s lack of strict oversight and regulatory standards. Some environmental advocates argue that carbon credits provide only a temporary fix for emissions by offsetting, rather than directly reducing, pollution. They also worry that without strong regulatory frameworks, projects such as this may merely delay the necessary transition from fossil fuels. Another concern raised is the potential for forest land to be repurposed once the carbon credit agreement expires, potentially reversing carbon storage benefits.
Under the terms of the Elliott State Forest plan, logging will continue but at reduced levels compared to past decades. This limited approach aims to balance the forest’s natural carbon sequestration abilities with sustainable forest management practices.
The project is awaiting final federal approval of a habitat conservation plan before the carbon credit strategy can be fully implemented next year. If successful, the initiative could pave the way for similar climate-focused forest management practices on state-owned lands across the western U.S., offering a model for how states can utilize natural resources to both combat climate change and generate revenue.
