This article was originally published on GreenBiz.
“There has been significant discussion about the merits of stacking conservation payments over the past few years.
A simple explanation for credit stacking is when landowners are paid for conservation practices on their property that provide multiple benefits to the environment.
For example, an acre of forest could earn revenue from both carbon credits (for maintaining carbon stored in the ground) and endangered species habitat credits (for managing land to benefit species that are endangered, threatened or otherwise at-risk) — this acre generates extra value and therefore can earn revenue from multiple credit types.
Credit types that might be stacked include: endangered species; water quality; wetlands; and carbon. Environmental credit stacking will be an important factor for forestland owners to consider as they attempt to generate adequate cash flow for their properties, and as the regulated carbon market grows…”
Read on at: GreenBiz.