Global Forest Partners (GFP) is a forestry investment advisor that manages over
750,000 hectares of timberland around the globe on behalf of their investors. The primary
objective of this analysis was to quantify GFP’s annual net carbon footprint, including both
carbon sequestration occurring through their forest assets as well as the emissions that are
attributable to the company. Additionally, we will provide a modeling tool with which GFP can
continue to monitor their carbon impact in the coming years. We structured our carbon footprint
analysis based on the methodology established by the California Air Resources Board for use in
the California cap-and-trade system and the methodology used in the Verified Carbon Standard
for global voluntary carbon markets. After performing our carbon accounting analysis, we sought
to provide a global perspective of carbon pricing mechanisms. Due to low carbon prices, historic
volatility within global carbon markets, and impending large-scale changes within international
carbon trading, it does not appear to be pressing for GFP to pursue a monetization of their carbon
sequestration at present. In order to properly prepare for an impending phase of expansion and
interconnectedness in the global carbon marketplace, we recommend that GFP begin considering the potential carbon additionality impacts of future acquisitions. GFP should also take steps
during its asset evaluation process to determine whether undertaking a forestry carbon offset
project in any of its existing forests would be feasible from a regulatory and financial standpoint.
Key trends to anticipate include the establishment of a Chinese emissions trading scheme by
2020, a potential increase in carbon trading within the United States, and a potential increase in
international carbon trading as a result of the 2015 Conference of Parties 21 talks. As a result of
this project, GFP will gain a firm foundation of knowledge regarding the methods involved in
calculating forest carbon sequestration, evaluating additionality, assessing the value proposition
for forestry carbon offset projects, and understanding the operation and outlooks of major global
carbon markets.